Brightstar Resources (ASX:BTR) announced a $180 million capital raising to aggressively fast-track its gold production profile in Western Australia.
The funding package is headlined by a $175 million institutional placement, backed by "tier one" international and domestic specialist natural resources funds, alongside a $5 million share purchase plan for eligible retail investors.
The strategic influx of capital fully satisfies the equity requirements needed to de-risk the company's dual-asset strategy, providing the green light to advance the Goldfields Project and the Sandstone Gold Project through to final investment decision.
The company is now positioned to make a formal FID by March, targeting the construction of a 1.5Mtpa processing plant. If schedules hold, Brightstar anticipates its first gold pour by June 2027.
The financial justification for this expansion is bolstered by an updated definitive feasibility study for Goldfields, which forecasts an initial six-year mine life producing over 75,000 ounces per annum.
At a projected gold price of $6,000/oz, the project is expected to generate roughly $1 billion in free cash flow, boasting a net present value of $606 million.
The capital raise serves as the primary engine for Brightstar’s "TARGET200" vision: a long-term goal to become a multi-asset producer yielding over 200,000 ounces annually.
The company plans to use the cash flow from Goldfields to organically fund future developments, cementing its status as a significant player in the Australian gold sector.