Brightstar Resources scores US$11.5 million finance to advance WA gold production

Brightstar Resources has executed a working capital facility with Ocean Partners Australia to boost CY25 production and accelerate exploration.

Brightstar is putting the building blocks in place to become a material mid-tier WA gold producer. Pic: Getty Images

• BTR signs US$11.5m working capital facility with Ocean Partners Australia

• Funds will provide working capital as company targets development of gold projects

• Company aiming to be a +200,000ozpa gold producer within 5 years

 

Special Report: Brightstar Resources has executed a US$11.5m (A$18m) working capital facility with Ocean Partners Australia that will enable the junior miner to scale up CY25 production accelerate exploration.

The facility supports the company’s strategy of growing current gold production through an ore purchase agreement with Genesis Minerals (ASX:GMD), which will process up to 500,000 tonnes of ore from Brightstar Resources’ (ASX:BTR) Laverton Hub over CY25 and Q1 CY26.

The funds will also help deliver significant production growth via the near-term development of the Menzies and Laverton gold projects this year, as well as rapidly advance the Sandstone gold project towards development.

The finance package underpins Brightstar’s goal of becoming a material gold producer in the WA Goldfields, with Brightstar aiming to scale up to over 200,000ozpa within 5 years.

The facility is structured as an advance payment agreement, allowing Brightstar to draw down up to US$11.5 million to fund production expansion and general working capital requirements.

It also contains no mandatory hedging or gold price participation clauses, meaning the company will retain full exposure to the upside in the gold price.

That’s a big deal with analysts at JP Morgan, Commbank, Goldman Sachs and more predicting prices will climb higher from their near record levels of over US$3300/oz.

Ocean Partners holds security over Brightstar’s Run-of-Mine ore stockpiles until sold to Genesis under the OPA.

Full steam ahead for gold development

The revolving nature of the facility provides ongoing working capital to fund development activities, including the Fish underground mine, which is expected to ramp up from the June quarter.

“The completion of the binding, full-form documentation for the US$11.5 million debt finance facility with Ocean Partners provides Brightstar with non-dilutive, flexible funding as we continue to execute on our CY25 production growth strategy,” managing director Alex Rovira said.

“I would like to thank our counterparties in Ocean Partners and Genesis for the collaborative approach to completing this financing, which provides Brightstar significant balance sheet flexibility to continue to aggressively pursue growth across our current gold production and continued exploration efforts targeting new discoveries and mineral resource growth across the portfolio.”

$240 million capped Brightstar has a string of catalysts coming up in the next few months.

They include:

• Ramping up production at Second Fortune towards the targeted ~10,000-12,000 tonnes per month,
• Continued development of the Fish underground mine with first ore budgeted for this (June) quarter,
• Ongoing haulage, blending and processing of historic Lord Byron open pit stockpiles under the Genesis OPA,
• Completing the Laverton-Menzies DFS, expected for delivery in 1H CY25; and
• Continuing exploration programs across the portfolio, with a further +100,000m of drilling to be completed in CY25.

This article was developed in collaboration with Brightstar Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Brightstar Resources scores US$11.5 million finance to advance WA gold production