Brightstar Resources to Raise AU$82 Million Via Placement, Genesis Minerals to Take Up 5.4% Stake; Shares Fall 8%

MT Newswires Live10-27 09:43

Brightstar Resources (ASX:BTR) is set to raise AU$82 million via a single-tranche bought deal placement to tier-1 institutional and strategic investors, and Genesis Minerals (ASX:GMD) subscribed for AU$30 million of the placement and will become a strategic shareholder with a 5.4% interest in Brightstar, according to a Tuesday filing with the Australian bourse.

Brightstar will issue 164 million new fully paid ordinary shares at an issue price of AU$0.50 per new share under the company's existing placement capacity pursuant to ASX Listing Rule 7.1. The placement is not subject to shareholder approval.

Proceeds will fund an accelerated work program at the Sandstone gold project in Western Australia, which will include infill and extensional drilling at Two Mile Hill, drill testing of multiple nearby Two Mile Hill analogue targets, as well as associated mine infrastructure and camp to support future project and mine construction activities.

Brightstar's shares fell 8% in recent trading on Tuesday.

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