Brightstar Resources (ASX:BTR) has completed its $193 million equity capital raising and the US$120 million ($169.31 million) senior secured bond to fund gold production and to bring the Sandstone Project to a final investment decision.
The agreements have brought the company to a total available liquidity of $383 million, comprising a cash balance of $212 million and undrawn bond net proceeds of $171 million.
Managing Director Alex Rovira says the company is pleased to have completed this funding package given the current “challenging market conditions”.
“With both the equity and debt components now settled, Brightstar is in an exceptionally strong position to deliver major gold production growth from the Goldfields Project while in parallel unlocking the value of our Sandstone Gold Project through drilling and feasibility work streams,” Rovira says.
“A strong balance sheet positions Brightstar favourably against the backdrop of difficult capital markets and ensures a material capital buffer and contingency for our development requirements and funding for Sandstone.
“We thank our shareholders and bond investors for their strong support and look forward to providing regular updates on both projects as we advance towards gold production in mid-2027.”
Funding will allow Brightstar to construct and commission the Goldfields Project in Western Australia, which has a peak funding requirement for development of $188 million.
The project is expected to deliver 75,000 ounces of gold over a six-year term, generating $1 billion in free cash flow.
Meanwhile, Brightstar is pushing the Sandstone Gold Project to a final investment decision for late 2027, early 2028.
The company intends to grow the resource at Sandstone, which is currently marked at 2.4 million ounces of gold.
Brightstar Resources is a Western Australian gold producer focused on its portfolio of assets in the northern Goldfields region.
Write to Maddison Elliott at Mining.com.au
Images: Brightstar Resources
