Key activities for Brightstar Resources Limited (Brightstar or the Company) (ASX: BTR) during the March Quarter are outlined below.
Highlights:
Brightstar makes recommended takeover offer for Linden Gold Alliance Limited Successful completion of A$12 million share placement A highly positive Scoping Study was released for the Jasper Hills Gold Project (owned by Linden Gold) with compelling operational and financial outputs1,4: An initial mine production target of 142koz @ 1.84g/t Au over a four-year life of mine Pre-Tax NPV8 of approximately A$99 million and IRR of 736% (@ A$3,000/oz gold price) Payback of 9 months on all pre-production capital costs of $12 million Selkirk mining joint venture and gold pours successfully completed, with finalised net cashflow generated to Brightstar of $6,500,000 to be received this quarter Cork Tree Well diamond drilling results returns spectacular intercepts including: 27.6m @ 17.8 g/t Au (CTWMET003) 34.4m @ 7.94g/t Au (CTWMET004) High grade RC drilling intercepts were received from Menzies Gold Project at the Aspacia & Link Zone depositsThe Offer is subject to conditions including a minimum 90% acceptance condition by the Linden shareholders and Linden optionholders As part of the Offer, Brightstar announced the successful receipt of firm commitments for a capital raising of A$12.0 million at A$0.014 per share via a two-tranche placement (Placement) The Placement received strong cornerstone support from Brightstar and Linden’s major shareholders Collins Street Asset Management and St Barbara for a total $4.3 million Mining investment house Lion Selection Group (ASX:LSX) committed to $2 million in the Placement to become a Brightstar shareholder Linden Directors Andrew Rich and Ashley Fraser to be appointed as Executive Director and Non- Executive Director respectively of Brightstar at successful completion of the Offer Highly regarded natural resources industry professional Richard Crookes will join the Board of Directors as Independent Non-Executive Chairman subject to the successful completion of the Offer. The combination of Linden and Brightstar will create a gold producer and developer with a material resource base that supports the Company’s strategy of becoming a mid-tier gold producer
Figure 1: Linden Gold’s Second Fortune & Jasper Hill Gold Projects relative to Brightstar assets
Compelling Scoping Study for Jasper Hills Gold Project4
The Jasper Hills Gold Project (Jasper Hills) is wholly owned by Linden, which is the subject of a Board- recommended off-market takeover offer by Brightstar. Jasper Hills is located 50km SE of Brightstar’s processing infrastructure, and will, subject to final feasibility studies, permitting and approvals and final investment decision, support Brightstar’s ambition of becoming a meaningful WA gold producer.
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