Brightstar boosts balance sheet with US$11.5M | Australian Markets

Brightstar Resources has boosted its balance sheet by executing a US$11.5 (A$17.8) million revolving stockpile finance facility with specialist mining lender Ocean Partners Australia.

The facility will bolster Brightstar’s working capital and supply flexibility for manufacturing growth on the company’s Laverton gold hub.

Management says it can help manufacturing growth as the ability is aligned with an ore buy settlement (OPA) with Genesis Minerals.

It helps the company’s deal with boosting gold manufacturing by the OPA, the near-term development of its Menzies and Laverton gold initiatives and gearing its Sandstone gold project in the direction of development.

Brightstar will be capable of draw down up to US$11.5M to fund manufacturing enlargement or for common working capital in a single or a number of tranches. Each drawdown will likely be repaid within six months by way of deductions from the provisional funds due beneath the OPA with Genesis.

Ocean Partners will maintain security over Brightstar’s run-of-mine (ROM) ore stockpiles till bought to Genesis beneath the OPA.

The facility doesn’t comprise obligatory hedging clauses, enabling Brightstar to benefit from full publicity to the prevailing gold price.

Ocean Partners gives a full vary of trading providers for miners, refiners, smelters and metallic shoppers across the globe. It has just lately executed funding preparations for a number of ASX-listed corporations, together with American West Metals and Polymetals Resources.

The completion of the binding, full-form documentation for the US$11.5 million debt finance facility with Ocean Partners supplies Brightstar with non-dilutive, versatile funding as we proceed to execute on our 2025 manufacturing growth strategy.

Management final 12 months originated an ore buy settlement with Genesis, permitting for up to 500,000t of ore to be processed this 12 months and within the first three months of 2026.

Linking the revolving stockpile facility with the OPA permits Brightstar to raised handle its money stream highs and lows due to the OPA’s variable processing schedules.

The greater degree of working capital accessible to the company will even permit it to pursue growth choices on the Second Fortune underground mine, the place it plans to focus on 10,000 tonnes to 12,000t monthly.

The company can also be pushing on with the development of its Fish underground decline because it strikes in the direction of first ore this quarter. Brightstar expects to provide 15,000t of ore monthly at Fish from July.

An extra 160,000t of materials grading 0.9 grams per tonne gold from stockpiles at its Lord Byron deposit can be found for quick processing.

Further plans contain haulage, mixing and processing of the Lord Byron stockpiles beneath the OPA, finishing the Laverton-Menzies definitive feasibility research earlier than finish of June and continued exploration throughout the company’s initiatives, together with 100,000 metres of drilling.

The company plans to mix the free money stream generated beneath the OPA with its new capital facility to progress exploration and development throughout its portfolio of initiatives to grow its present and near-term manufacturing. Its purpose is to change into a 200,000-ounce WA gold producer within the following 5 years.

Brightstar seems to be lining all its geese in a row because it prepares to take a giant leap up the ladder amongst its fellow WA gold producers.

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