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 provide flexibility for production growth at the company’s Laverton gold hub.
Management says it will aid production growth as the facility is aligned with an ore purchase agreement (OPA) with Genesis Minerals.
It supports the company’s focus on boosting gold production through the OPA, the near-term development of its Menzies and Laverton gold projects and gearing its Sandstone gold project towards development.
Brightstar will be able to draw down up to US$11.5M to fund production expansion or for general working capital in one or multiple tranches. Each drawdown will be repaid within six months via deductions from the provisional payments due under the OPA with Genesis.
Ocean Partners will hold security over Brightstar’s run-of-mine (ROM) ore stockpiles until sold to Genesis under the OPA.
The facility does not contain mandatory hedging clauses, enabling Brightstar to benefit from full exposure to the prevailing gold price.
Ocean Partners offers a complete range of trading services for miners, refiners, smelters and metal consumers around the globe. It has recently executed funding arrangements for several ASX-listed companies, including 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 provides Brightstar with non-dilutive, flexible funding as we continue to execute on our 2025 production growth strategy.
Management last year originated an ore purchase agreement with Genesis, allowing for up to 500,000t of ore to be processed this year and in the first three months of 2026.
Linking the revolving stockpile facility with the OPA enables Brightstar to better manage its cash flow highs and lows due to the OPA’s variable processing schedules.
The higher degree of working capital available to the company will also allow it to pursue growth options at the Second Fortune underground mine, where it plans to target 10,000 tonnes to 12,000t per month.
The company is also pushing on with the development of its Fish underground decline as it moves towards first ore this quarter. Brightstar expects to produce 15,000t of ore per month at Fish from July.
An additional 160,000t of material grading 0.9 grams per tonne gold from stockpiles at its Lord Byron deposit are available for immediate processing.
Further plans involve haulage, blending and processing of the Lord Byron stockpiles under the OPA, completing the Laverton-Menzies definitive feasibility study before end of June and continued exploration across the company’s projects, including 100,000 metres of drilling.
The company plans to combine the free cash flow generated under the OPA with its new capital facility to progress exploration and development across its portfolio of projects to grow its current and near-term production. Its goal is to become a 200,000-ounce WA gold producer within the next five years.
Brightstar appears to be lining all its ducks in a row as it prepares to take a giant leap up the ladder among its fellow WA gold producers.
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https://thewest.com.au/business/bulls-n-bears/brightstar-boosts-balance-sheet-with-us115m-capital-facility-c-18600726
