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Genesis Minerals is investing $30 million in Brightstar Resources as part of an $82 million capital raising to accelerate exploration and development at the Sandstone gold project in Western Australia.
Under the placement, Genesis will acquire 60 million new Brightstar shares, increasing its interest from approximately 0.8 per cent to 5.4 per cent following completion.
Brightstar has secured binding commitments for the placement, with shares priced at $0.50 each.
The company said the proceeds would support an expanded exploration program at Sandstone, where recent drilling has increased the mineral resource estimate at Two Mile Hill–Shillington to 1.45 million ounces of gold. The broader Sandstone project has a reported mineral resource of 3.6 million ounces.
Brightstar managing director Alex Rovira said the latest results had prompted the company to reconsider the scale of its planned exploration activities.
“The true size of Sandstone is quickly emerging, which now warrants a faster and larger work program than we scoped at the start of the year,” Rovira said.
“This capital raising allows us to fast-track the exploration workstreams to define and enhance what an enlarged Sandstone development will look like.”
Brightstar plans to use part of the placement proceeds to accelerate a 6500m diamond drilling program targeting the Shirvington Zone, alongside further infill and extensional drilling at Two Mile Hill.
The company is also assessing an early mining strategy at Sandstone, including a potential cutback of the existing open pit and development of an underground exploration decline.
A pre-feasibility study is targeted for the December quarter, with Brightstar planning a subsequent definitive feasibility study that will incorporate further assessment of underground mining opportunities.
Separately, Brightstar reported that construction of its Goldfields project remained on schedule and on budget. The company said its Laverton processing plant was approximately 47 per cent complete, with first gold production targeted for the June quarter of 2027.
Brightstar said the $82 million placement would support its accelerated Sandstone work program without changing the existing funding arrangements for the Goldfields development.
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