Brightstar’s $180M Raise Hinges on Shareholder Approval and Project Execution

Capital Raising to Fuel Growth Ambitions

Brightstar Resources Limited (ASX, BTR) has announced a strategic capital raising of A$180 million, comprising a A$175 million institutional placement and a A$5 million share purchase plan (SPP). This funding round aims to fully finance the equity requirements for the company’s flagship Goldfields Project development and to advance its Sandstone Gold Project to a final investment decision (FID).

The placement was well supported by a mix of existing and new institutional investors, including several high-quality natural resources specialist funds, reflecting confidence in Brightstar’s growth trajectory. The shares were issued at A$0.50 each, representing a 9.5% discount to the 20-day volume weighted average price, with the SPP offered at the same price but at a 16.4% discount to the 5-day VWAP.

Robust Goldfields Project Economics

Central to this capital raise is the updated Definitive Feasibility Study (DFS 2.0) for the 100%-owned Goldfields Project in Western Australia. The study outlines a compelling production profile with an average of over 75,000 ounces of gold per annum over an initial six-year mine life, producing a total of approximately 505,000 ounces.

Financially, the project delivers a pre-tax net present value (NPV8) of A$606 million at a gold price of A$6,000 per ounce and a robust internal rate of return of 74%. The forecast free cash flow is nearly A$1 billion over the life of the mine, underpinning Brightstar’s confidence in the project’s profitability and sustainability.

Advancing Construction and Sandstone Development

Brightstar plans to make a final investment decision on the Goldfields Project by March 2026, with construction of a 1.5 million tonnes per annum carbon-in-leach processing plant expected to commence shortly thereafter. The company targets first gold production by mid-2027, marking a significant milestone in its transition to a gold producer.

The capital raising proceeds will also accelerate development activities at the Sandstone Gold Project. A pre-feasibility study and maiden Ore Reserve are anticipated by early September 2026, with the goal of advancing Sandstone to FID. Brightstar envisions leveraging future cash flows from Goldfields to fund Sandstone’s development, supporting its broader ambition to become a multi-asset gold producer delivering over 200,000 ounces annually by 2029.

Shareholder Participation and Next Steps

The SPP offers existing eligible shareholders the opportunity to participate in the company’s growth at a discounted price, with applications capped at A$30,000 per shareholder. The conditional tranche of the placement, raising approximately A$122.5 million, awaits shareholder approval at an Extraordinary General Meeting expected in early March 2026.

Brightstar’s Managing Director, Alex Rovira, highlighted the significance of emerging fully funded from this capital raise, stating it validates the quality of their assets and the team’s efforts. The company remains focused on delivering the production profile outlined in the DFS 2.0 and unlocking the value of its portfolio.