Brightstar Resources Limited (ASX: BTR) (Brightstar) is pleased to announce the completion of the acquisition of the gold rights at the Montague East Gold project (MEGP) from Gateway Mining Limited (ASX: GML) (Gateway).
HIGHLIGHTS
Brightstar has completed the acquisition of the Montague East Gold Project (MEGP) from Gateway Mining LimitedThe completion of the acquisition of the mineral resources at the MEGP signifies the strategic addition of shallow, advanced ounces to Brightstar which is aligned with the Company’s strategy of advancing multi assets towards near term commercialisationThe MEGP is located 70km from the Sandstone Gold Project, which is owned by Alto Metals Ltd, which is currently undertaking a merger with Brightstar by way of a Scheme of Arrangement$5 million cash consideration paid and 466.67 million Brightstar shares issued to GatewayDeferred contingent consideration of $2 million in Brightstar shares subject to further project milestones, including:upon the commencement of commercial mining operations in respect of the gold mineral rights at MEGP, orthe delineation of a JORC Mineral Resource Estimate on the tenements exceeding 1.0 Moz Au.Following completion, the sale by Gateway of the consideration shares will be subject to orderly sales restrictions in consultation with BrightstarBrightstar is planning a drilling program to commence at the MEGP in late October, targeting infill and extensional targets within and proximal to the Mineral Resources located at the advanced Whistler and Montague-Boulder depositsCompletion of the MEGP acquisition adds a further 9.6Mt @ 1.6g/t Au for 0.5Moz Au to Brightstar’s JORC Mineral Resource EstimateTotal mineral endowment owned by Brightstar now 38.3Mt @ 1.6g/t Au for 2.0Moz Au
For further details regarding the Transaction please refer to the Company’s ASX announcement released on 1 August 20241.
Brightstar’s Managing Director, Alex Rovira, commented“The completion of the acquisition of the Montague East Gold Project from Gateway achieves the first step in Brightstar’s previously announced consolidation plan of the Sandstone district, adding shallow ounces and a meaningful Mineral Resource inventory to our portfolio of advanced exploration, development and producing gold assets in Western Australia.
We are working towards mobilising an RC drill rig to the Montague-Boulder and Whistler deposits in late October, which contain ~280koz Au of shallow, largely oxide material. It is our intent to move the Montague East Gold Project swiftly through resource drill-out and feasibility study workstreams to advance this asset towards development.
With 2Moz of gold Mineral Resources situated on granted mining leases in the Company, combined with our low capex growth plans and near-term development and production expansion, Brightstar is well placed to maximise value of the portfolio in an all-time high gold price environment.
Recent drilling success across the Lord Byron, Fish and Second Fortune deposits has illustrated the immense upside in the Company’s projects, as we seek to grow the Mineral Resource and de-risk future development through the DFS underway.”
MONTAGUE ACQUISITION
Brightstar, via its wholly-owned subsidiary Montague Gold Project Pty Ltd (MGP), has acquired the interests held by Gateway and its wholly owned subsidiary Gateway Projects Pty Ltd (GPWA) in certain mining tenements in respect of Gateway’s Montague Gold Project, with Brightstar obtaining 100% of the gold mineral rights and Gateway retaining all other mineral rights.
The total consideration paid by Brightstar in respect of the Montague acquisition is $14.0m, comprising:
an upfront cash payment of $5.0m;466,666,667 Brightstar shares issued at an implied issue price of $0.015 per share for $7 million worth of fully paid Brightstar shares (Gateway Consideration Shares); and $2.0m payable in cash or Brightstar shares, upon the commencement of commercial mining operations in respect of the gold mineral rights, or the delineation of a JORC Mineral Resource on the tenements exceeding 1.0 Moz Au.
Following Completion, the sale by Gateway of the Gateway Consideration Shares will be subject to orderly sales restrictions in consultation with Brightstar.
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