BRIGHTSTAR SECURES A$12 MILLION FOR EXPANSION AND DEVELOPMENT

Investor Confidence High as Company Prepares for Next Phase of Gold Projects

Brightstar Resources Limited (ASX:BTR) has successfully secured firm commitments for a two-tranche placement to raise A$12 million. The funds are earmarked for extending the mine life at the operating Second Fortune mine and expediting the development of key projects.

Placement Success and Future Plans:

  • The placement was overwhelmingly supported by leading domestic and international investors, with significant backing from existing shareholders of Brightstar and Linden.
  • Post-placement, Brightstar will boast over $20 million in cash reserves and no debt, positioning the company for robust advancement of its Menzies and Laverton Gold Projects.
  • This financial backing also supports the proposed acquisition of Linden Gold Alliance Limited, adding the Second Fortune and development-ready Jasper Hills project to Brightstar’s portfolio.

Strategic Investments:

  • St Barbara Ltd invested $2 million in the placement, poised to become Brightstar’s largest shareholder with approximately 13% ownership post-completion of the placement and Linden takeover.
  • Collins St Asset Management reaffirmed its confidence with a $2.3 million contribution, and Lion Selection Group also made a significant $2 million investment.

Placement Details:

  • The placement comprises two tranches: the first using the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A for $7.5 million, and the second of $4.5 million, subject to shareholder approval.
  • Importantly, the placement proceeds are independent of the outcome of the Linden takeover bid.

Read the full announcement

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