Brightstar Resources (ASX:BTR) has secured a US$11.5 million ($17.82 million) revolving stockpile financing facility with privately held Ocean Partners Australia.
The facility strengthens the company’s balance sheet as it ramps up production at the Laverton Hub and optimises working capital management for continued and expanding gold production under an ore purchase agreement with Genesis Minerals (ASX:GMD).
Under the facility, Brightstar can draw down up to US$11.5 million via a single or multiple tranches. Each drawdown is to be repaid within six months via deductions from provisional payments under the ore purchase agreement.
The facility attracts an interest rate of +11% each year, accruing monthly, in line with the CME Group’s three-month secured overnight financing rate.
Ocean Partners holds security over Brightstar’s run-of-mine ore stockpiles until sold to Genesis Minerals.
Hamilton Lock and Allens were appointed legal advisors in connection with this transaction.
Brightstar, which has a market capitalisation of $243.37 million, says the facility ensures the company can conduct activities at the Second Fortune and Fish underground mines, as well as the Lord Byron Stockpiles.
At Second Fortune, 3,002 ounces of gold has been mined this calendar year and 4,372 ounces of gold has been sold under the Genesis agreement. Mining is scheduled to ramp up after restarting full production in Q1 2025.
Meanwhile, first ore from the ongoing development of the underground portal at Fish is anticipated in the June quarter, ramping up to 15,000 tonnes per month from July 2025.
Additionally, 160,000 tonnes @ 0.9 grams per tonne gold at Lord Byron is available for immediate processing.
Managing Director Alex Rovira says completing the binding, full-form documentation provides Brightstar with non-dilutive, flexible funding as the company continues to execute its growth strategy.
The company’s growth strategy focuses on ramping up production towards the targeted 10,000 to 12,000 tonnes per month at Second Fortune, as well as continued development at Fish.
Brightstar will also focus on ongoing haulage, blending and processing of historical Lord Byron open pit stockpiles and complete the Laverton-Menzies Definitive Feasibility Study in the first half of this year.
In conjunction, exploration programs will continue across the company’s portfolio of projects. A further 100,000m of drilling is expected to be completed this year.
The company will be attending the RIU Sydney Resources Round-up being held from 6-8 May. Mining.com.au is an official media partner at this year’s event.
Write to Aaliyah Rogan at Mining.com.au
Images: Brightstar Resources
