Brightstar Resources Ltd (ASX:BTR) has received firm commitments to raise $3.5 million in funding through a share placement, which will be allocated towards accelerating exploration and development activities across its gold portfolio in Western Australia.
This financial milestone was reached due to robust support from new and existing institutional and sophisticated investors, with the placement being significantly oversubscribed.
The company's directors will also contribute to the placement, pledging a total of $150,000, subject to shareholder approval.
This influx of funds, along with the anticipated cash flow from the Selkirk JV mining and gold production set to kick off in early 2024, positions Brightstar to fully execute its strategic plan.
The strategy involves becoming a near-term, low-capex gold producer at the Menzies and Laverton gold projects.
Fund bigger-scale development
Brightstar managing director Alex Rovira said: “This has been a very well supported capital raising attracting support from key existing investors but importantly substantial support from new sophisticated and institutional investors.
“The capital raising allows Brightstar to continue its exploration and development activities across its portfolio and ensure we are well funded until anticipated proceeds from the Selkirk mining JV at Menzies in early 2024.
“This is line with our strategy of utilising early revenue opportunities with the resources in the ground to fund the bigger-scale development activities of the company which will be fully delineated in the upcoming scoping study.
“We have hit the ground running as a merged entity in recent months with significant drilling programs at Menzies and Laverton conducted and look forward to continuing this strong momentum as we progress our strategy of balancing exciting greenfields exploration with development of key assets within our gold resources at Menzies and Laverton in the near future.
“Recent deals with Ardea Resources and DevEx Resources have allowed Brightstar to divest non-core tenements and exploration to well-credentialed partners and allowed the company to acquire for no cost additional ground in Menzies covering the fertile Menzies Shear Zone and greenstone belt.”
Use of funds
The newly raised funds will be instrumental in expediting operations across Brightstar's Menzies and Laverton exploration portfolio.
Planned activities include infill and extensional drilling at key resource areas within Brightstar's one-million-ounce portfolio, with the goal of advancing deposits through mining studies toward production.
Other efforts will focus on greenfield exploration activities at Cork Tree Well North and Menzies Northern Trend.
Moreover, Brightstar intends to kick off baseline surveys to streamline study timelines and mitigate future development risks.
Forward plan
These initiatives reflect the company's proactive approach to addressing potential challenges while maintaining a steady trajectory toward its goals.
Brightstar is anticipating numerous significant catalysts within the next six to nine months, which include mining and gold production from Selkirk, ongoing exploration results, and the completion of a scoping study aimed at outlining production pathways from its +1-million-ounce gold portfolio in the third quarter.
Assays from about 4,000 metres of reverse circulation (RC) drilling recently completed at Menzies and Laverton are due next month.
These results will provide further insight into high-grade structures both within and outside of current resource envelopes.
The newly secured funds and anticipated achievements underscore Brightstar's commitment to expanding its footprint in the gold production landscape.
With strategic operations and strong investor backing, the company is well-positioned to drive value for its shareholders in the months to come.