Brightstar fully funded for future exploration

Brightstar Resources (ASX:BTR) is gearing up to fund mine life extension at the operating Second Fortune Mine, as well as fast-track development of the Jasper Hills, Menzies, and Laverton gold projects after tapping investors for $12 million. 

Canaccord Genuity (Australia) and Argonaut Securities were retained as joint lead managers to the placement. 

Brightstar, which has a $37.92 million market capitalisation, will emerge from the ‘strongly supported’ two-tranche $12 million placement, along with existing cash and proceeds from the Selkirk mining operations, with over $20 million cash and no debt, which will underpin the next phase of activities. 

Funds will also be used, subject to completion of its proposed takeover of unlisted gold producer Linden Gold Alliance, to fund activities the latter’s Second Fortune and Jasper Hills projects.  

The placement is not conditional on the success of Brightstar’s takeover bid for Linden. 

St Barbara (ASX:SBM) provided ‘strong’ cornerstone support of $2 million and, as such, will emerge as Brightstar’s largest shareholder at 13% post completion of the placement and the Linden takeover. 

Brightstar’s existing largest institutional shareholder Collins St Asset Management subscribed for about $2.3 million in the placement, while well-regarded mining investment house Lion Selection Group (ASX:LSX) participated for $2 million. 

Brightstar owns a processing plant (currently on care and maintenance), a 60-man accommodation camp, and non-processing infrastructure, located 30km SE of Laverton and within 60km of the company’s 511,000oz Au JORC resource within the Laverton Gold Project. 

As of 31 December 2023, the company had $4.817 million cash and cash equivalents at hand, according to its latest quarterly report.

Write to Adam Drought at Mining.com.au

Images: Brightstar Resources
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.