Brightstar’s US$11.5M Revolving Finance Boosts Laverton Production Plans

Strengthening Financial Flexibility

Brightstar Resources Limited (ASX:BTR) has taken a significant step to underpin its 2025 growth ambitions by securing a US$11.5 million revolving stockpile finance facility with Ocean Partners Australia Pty Ltd. This facility, equivalent to approximately AUD$18 million, is designed to provide the company with enhanced working capital flexibility as it ramps up gold production and accelerates exploration activities across its portfolio in Western Australia.

The revolving nature of the facility means Brightstar can draw down funds in multiple tranches up to the limit, with repayments structured over six months via deductions from provisional payments under its Ore Purchase Agreement (OPA) with Genesis Minerals Limited. This arrangement aligns closely with Brightstar’s operational cadence, smoothing out working capital fluctuations tied to processing schedules and statutory reporting periods.

Backing Production Growth and Exploration

The facility directly supports Brightstar’s strategy to grow gold output from its Laverton Hub, including the Second Fortune and Fish underground mines. Notably, the Fish mine is expected to commence ore production in the June quarter of 2025, ramping up to 15,000 tonnes per month by July. Additionally, the company plans to continue processing historic stockpiles at Lord Byron, further bolstering near-term production.

Beyond immediate production, Brightstar is advancing its broader development pipeline, including the delivery of a definitive feasibility study (DFS) for the Laverton-Menzies hubs in the first half of 2025 and progressing the Sandstone Gold Project towards a pre-feasibility study targeted for the first half of 2026. These projects underpin the company’s aspirational goal of becoming a material gold producer in the Western Australian Goldfields, aiming for an annual production exceeding 200,000 ounces within five years.

Non-Dilutive Funding with Upside Exposure

Brightstar’s Managing Director, Alex Rovira, highlighted the importance of the facility as a non-dilutive source of capital that preserves shareholder value while providing the financial agility to pursue growth. The facility carries an interest rate of 3-month CME Term SOFR plus 11% per annum, accruing monthly, and is secured against Brightstar’s run-of-mine ore stockpiles until sold under the OPA.

Importantly, the financing agreement contains no mandatory hedging or gold price participation clauses, allowing Brightstar to retain full exposure to potential gold price appreciation. This feature aligns with the company’s bullish outlook on gold markets and its growth trajectory.

Strategic Partnerships and Next Steps

The transaction was completed following thorough legal and technical due diligence, with Brightstar advised by Hamilton Locke and Ocean Partners by Allens. Ocean Partners brings extensive expertise in mining finance and trading, having recently supported other ASX-listed miners.

Looking ahead, Brightstar will focus on ramping production at Second Fortune towards 10,000–12,000 tonnes per month, advancing Fish underground mine development, and continuing extensive exploration programs with over 100,000 meters of drilling planned for 2025. The company expects to leverage free cash flow generated under the OPA, alongside the facility, to fund these growth initiatives.

While the company’s production targets remain aspirational and contingent on successful feasibility studies and operational execution, this financing milestone marks a pivotal moment in Brightstar’s evolution from a junior developer to a significant gold producer in Western Australia.