Brightstar Resources Ltd (ASX: BTR) has announced that its $193 million equity raise and a $US120 million debt facility are complete, which combined will fund its Goldfields Project through to production.
There will also be a "material capital allocation" to advance the company's Sandstone gold project through to a final investment decision, which is targeted for late calendar year 2027 or early 2028.
The company said on Friday in a statement to the ASX that the Goldfields project was expected to start producing gold in the June quarter of 2027, and was expected to generate 75,000 ounces a year of gold over six years, for $1 billion in free cash flow.
Brightstar would also receive further revenue through ore being produced from current underground mining operations, with 130,000 to 140,000 tonnes of ore to be produced at a grade of 1.8 to 2 grams per tonne of gold.
Image source: Getty Images
Soon to break ground
The company said the Goldfields project was almost ready to go.
Subject to the receipt of final approvals and the formal declaration of FID (final investment decision), all funds are now available to commence site development and construction at the Goldfields Project whilst maintaining a substantial capital allocation to accelerate exploration, feasibility studies and permitting activities at the Sandstone Project. The flexible debt funding structure included minimal financial covenants, no royalties or warrants and preserves full gold price upside for shareholders, whilst crucially allowing Brightstar to continue to allocate meaningful capital towards the Sandstone Project.
The capital raise was conducted at 50 cents per share, compared with the company's current share price of 35 cents, with the stock falling sharply from levels higher than 50 cents in early March.
Funded to grow
Brightstar Managing Director Alex Rovira said the company was "delighted" to have finalised the funding package, especially in light of the current market volatility.
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. 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.
Brightstar is valued at $290.5 million.
