Brightstar rattles the tin for $3.5m to accelerate Menzies and Laverton exploration

Near-term gold producer Brightstar Resources has firmed up $3.5m in significantly oversubscribed commitments from investors to further exploration at its Menzies and Laverton exploration portfolio.

The share placement consists of ~318.2m shares at an issue price of $0.011 per share at an 8% to the 5-day VWAP, of which the director’s themselves threw in $150,000 of their own money also.

Brightstar Resources’ (ASX:BTR) exploration programs will include resource definition drilling at advanced assets including its Cork Tree Well deposit at Laverton and Lady Shenton system at Menzies.

The gold hunter will also conduct greenfield exploration at targets within the Menzies Northern Trend, including at new ground it received in a recent tenement swap deal with Ardea Resources (ASX:ARL).

Long-lead early-stage studies on environmental, social and heritage surveys are to commence as well.

Well supported

“This has been a very well-supported capital raising attracting support from key existing investors but importantly substantial support from new sophisticated and institutional investors,”

“The capital raising allows Brightstar to continue its exploration and development activities across its portfolio and ensure we are well funded until anticipated proceeds from the Selkirk mining JV at Menzies in early 2024.

“This is in line with our strategy of utilising early revenue opportunities with the resources in the ground to fund the bigger-scale development activities of the company which will be fully delineated in the upcoming scoping study.”

Brightstar says there will be a number of significant steps being made in the next 6-9 months including gold production from its Selkirk JV and completion of a scoping study that will outline development pathways for its over 1Moz gold portfolio.

Pending assays from ~4,000m of completed RC drilling will give the company a better understanding of its targets at Menzies and Laverton are due out soon.

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.