Brightstar Resources has raised AU$175 million to build its Goldfields project and advance the Sandstone gold project to final investment decision.
The capital raising is through a two-tranche placement of 350 million new shares at an issue price of 50 cents per share.
Tranche 1 raises AU$52.5 million, issuing around 105 million shares, while tranche 2 raises AU$122.5 million or 245 million shares. Shares for tranche 1 will be issued on February 10, while shares for tranche 2 will be issued in early March.
Brightstar is also offering a share purchase plan to existing shareholders to raise AU$5 million.
Brightstar Managing Director Alex Rovira said: “The near-term development of our Goldfields hub, as shown in our DFS 2.0, enables Brightstar to underpin its position as an emerging Western Australian gold producer with a significant growth profile that will generate outstanding financial metrics and unlock significant value for our shareholders.
“To emerge with all the equity funding required to build our Goldfields hub, as well as substantial budget that enables accelerated pre-development activities at Sandstone and to fully fund Sandstone to FID is an amazing opportunity for Brightstar that enables us to maintain the momentum of de-risking our portfolio of advanced gold projects.”
Brightstar’s Goldfields project in Western Australia is set to produce 75,000 ounces from 505,000 total mine production over a mine life of six years.
The project is expected to deliver AU$1 billion of free cash flow and would enable the company to achieve its TARGET200 vision of becoming a multi-asset 200,000 ounces gold producer.
The company said it will make a final investment decision for the Sandstone gold project in the March quarter to allow the commencement of construction of a 1.5 Mtpa processing plant, which would see first gold poured in June 2027.
