Shares in Brightstar Resources tumbled more than 20 per cent after the gold miner announced plans to raise $180 million at a discounted price to fund development of its Goldfields project.
Shares in Brightstar Resources tumbled more than 20 per cent on Monday after the gold miner announced plans to raise $180 million at a discounted price to fund development of its Goldfields project.
The market reacted strongly to the capital raise announcement early on Monday, with Brightstar closing the day of trade down 21 per cent to 49.6 cents per share.
Brightstar told the market it had received firm commitments to raise $175 million through a two-tranche placement, alongside launching a $5 million share purchase plan to eligible shareholders.
The gold miner is rattling the tin at is 50 cents a pop, which is a 9.5 per cent discount to its 20-day volume weighted average price or 16.4 per cent discount to its 5-day average.
Proceeds from the capital raise are expected to provide the equity for both development and construction of its Goldfields project, along with a 1.5 million tonnes per annum CIL processing plant, located in Laverton.
Canaccord Genuity was appointed sole lead manager and bookrunner to the capital raise, while Argonaut Securities and Euroz Hartleys were co-managers on the transaction.
“The near-term development of our Goldfields Hub, as shown in our DFS 2.0, enables Brightstar to underpin its position as an emerging Western Australian gold producer with a significant growth profile that will generate outstanding financial metrics and unlock significant value for our shareholders,” Mr Rovira said.
“To emerge with all the equity funding required to build our Goldfields Hub, as well as a substantial budget that enables accelerated pre-development activities at Sandstone and to fully fund Sandstone to FID, is an amazing opportunity for Brightstar that enables us to maintain the momentum of de-risking our portfolio of advanced gold projects.”
This is Brightstar's second major raise in the space of seven months after tapping investors for $50 million in July last year.
It also follows on from news last week that the company had updated its definitive feasibility, DFS2.0, in relation to its Goldfields Hub project.
Brightstar is eying off a final investment decision at its Goldfields Hub during this quarter – an asset which has an initial mine life of six years.
It is also moving towards a pre-feasibility study and inaugural ore reserve at Sandstone, scheduled for the September 2026 quarter.
During the December 2025 quarter, Brightstar produced 7,846 ounces of gold across its Laverton underground mining operations, spurred on by a 42 per cent quarterly production increase at its Fish underground operation.
