USD $4,127.96
Goldman Nordic bond financing secures construction funding and advances Sandstone project toward final investment decision
Brightstar Resources Limited (ASX:BTR) has completed a fully subscribed US$120 million Senior Secured Bond, securing funding for development of its Goldfields Project in Western Australia.
The bond issue follows strong investor demand and, combined with the company’s recently completed A$193 million equity placement and share purchase plan, provides the capital required to construct and deliver the Goldfields Project while continuing to advance the Sandstone Project toward a Final Investment Decision.
Brightstar said the combined funding package allows it to progress site development and construction activities at Goldfields, with work expected to begin in the June quarter of 2026 following final approvals. First gold production is targeted for the June quarter of 2027.
The financing structure includes a 12.5% p.a. coupon with a four-year tenor, with no principal repayments required for the first 18 months. A tiered amortisation schedule follows, with a 20% bullet repayment at maturity.
According to the company, the structure also establishes a material budget for Sandstone, supported by a mechanism to divert operational free cash flow from Goldfields to advance the project through Pre-Feasibility Study (PFS), Definitive Feasibility Study (DFS) and Final Investment Decision, currently targeted for late CY27 or early CY28.
Brightstar highlighted that the debt facility contains no options, warrants, royalties or other dilutive instruments, and does not require mandatory hedging that would limit gold price upside.
Demand for the bond was reported to be significantly higher than the amount raised, with participation from international institutional funds and natural resource specialist investors, reflecting confidence in the development strategy and the economics of the Goldfields Project.
Managing Director Alex Rovira
We are extremely pleased to have secured this US$120 million Bond, which is a strong endorsement of the Goldfields Project, the robust Feasibility Study outcomes and Brightstar’s broader Target200 production strategy of becoming a Western Australia +200,000oz per annum gold producer.
This debt financing further strengthens our balance sheet, provides funding certainty and materially de-risks the delivery of Goldfields Hub’s imminent development whilst enabling continued exploration growth across the portfolio.
Securing this debt on attractive and flexible terms underwrites our development plan and provides a clear pathway to sustainable free cash flow generation. In parallel, we will continue advancing the Sandstone Project, with an enlarged growth budget, through to Final Investment Decision, positioning Brightstar for a period of sustained production growth.
