Brightstar Resources Limited · ASX:BTR
Brightstar Resources — Merger or Acquisition (December 2022)
22 slides from Brightstar Resources's merger presentation, Dec 23, 2022
Slide 1: Strategic Merger to Underpin the Next WA Gold Producer
STRATEGIC MERGER TO UNDERPIN THE NEXT WA GOLD PRODUCER INVESTOR PRESENTATION DECEMBER 2022 INVESTOR PRESENTATION | 1
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Important Notices This Presentation has been prepared by Brightstar Resources Limited (Brightstar) and Kingwest Resources Limited (Kingwest) and is authorised by the Board of Directors of Brightstar and the Board of Directors of Kingwest. This Presentation should be red
Slide 3: Strategic Rationale
Strategic Rationale Logical consolidation of two under-appreciated assets in a well-endowed gold district • Strategic consolidation of the gold assets of Brightstar Resources and Kingwest Resources Strategic • Combined JORC Mineral Resources of ~1Moz, all located on granted Mining Leases, is a mater
Slide 4: Transaction Overview
Transaction Overview Unanimous support from Kingwest and Brightstar Boards for the merger • Merger of Brightstar and Kingwest to be effected via a Kingwest scheme of arrangement (Scheme) under which Brightstar will acquire Transaction 100% of the shares in Kingwest Structure • Post implementation, t
Slide 5: Key Benefits to Both Sets of Shareholders
Key Benefits to Both Sets of Shareholders Merger unlocks significant latent value and provides a win for both shareholders MUTUALLY BENEFICIAL TRANSACTION TO BOTH SETS OF SHAREHOLDERS ✓ Mitigation of single asset development risk ✓ Increased scale of JORC Mineral Resources fast tracks development sc
Slide 6: Operational Overview
Operational Overview Merger invites diversified ore opportunities for assessing production opportunities Merged Group Overview Regional Overview Laverton (Brightstar) Key Project • Cork Tree Well, Alpha, Beta Areas Menzies (Kingwest) • Lady Shenton, Lady Harriet, Yunndaga, First Hit Proposed Mining
Slide 7: Regional Overview
Regional Overview Opportunity to consolidate a fragmented junior market in a world class address Regional Consolidation & Simplified Corporate Strategy Regional Overview • Regional consolidation is underway in Leonora and there is an opportunity to consolidate underappreciated assets • Merged Group
Slide 8: Brightstar Asset Overview
Brightstar Asset Overview Base load resources with material exploration upside • Approximately 300km2 of 100%-owned tenure in the Laverton Tectonic Zone. Significant exploration upside exists across the tenement package • Portfolio is spread across multiple project areas: - Alpha (1.4Mt @ 2.3g/t Au
Slide 9: Brightstar Asset Overview
Brightstar Asset Overview Existing infrastructure underpins re-start optionality Infrastructure on Site Provides Operational Head-Start over Peers Processing Plant & Infrastructure in Laverton Processing Infrastructure • 485ktpa CIL processing plant1 currently on care & maintenance, inclusive of two
Slide 10: Kingwest Asset Overview
Kingwest Asset Overview Contiguous land package in prolific historic mining field • Kingwest owns 100% of the Menzies Gold Project (MGP), a tenement holding of a contiguous land package of granted mining leases over a strike length of +15km • High-grade open pit ounces can be monetised utilising the
Slide 11: Kingwest Asset Overview
Kingwest Asset Overview High grade open pit ounces that will carry haulage costs to Laverton Stirling and Pericles High Grade Domains • Recent drilling success from shallow infill drilling at the Stirling and Pericles Deposits - Contained in the broader Lady Shenton System, returned excellent high g
Slide 12: Refreshed Corporate Strategy to Drive Shareholder Returns
Refreshed Corporate Strategy to Drive Shareholder Returns Clear and deliverable targets to create value over the short, medium and longer term • Two complementary advanced gold exploration plays located in a Tier 1 operating jurisdiction under-going significant Establishing Critical Mass in a consol
Slide 13: Enhanced Asset Diversification and Scale
Enhanced Asset Diversification and Scale Multiple ore sources provides optionality in production scenarios, in a dynamic district Resource Overview (koz) Merged Group Resource Overview (koz) • The Merged Group’s combined asset base of 21Mt @ 1.5g/t Au for 965koz 101 consists of multiple ore sources
Slide 14: Board and Management
Board and Management Rejuvenated Board & Management to drive aggressive organic and inorganic growth Board of Directors Jonathan Downes Greg Bittar Ashok Parekh Brightstar Non-Executive Director Non-Executive Chairman Non-Executive Director Kingwest Incoming / Independent Yonji Duan Josh Hunt Non-Ex
Slide 15: Capital Structure & Transaction Timeline
Capital Structure & Transaction Timeline Merged Group Pro Forma Snapshot Brightstar Kingwest Merge Group Share Price $ / sh 0.016 0.0363 0.016 Shares on Issue m 832.61 281.7 1,472.9 Market Capitalisation A$m 13.3 10.1 23.6 % shareholding in Merged Group % 57% 43% 100% Cash A$m (2.2)2 (2.4)4 (4.6) De
Slide 16: Transaction Timeline
Transaction Timeline Transaction timeline is indicative only and subject to change Indicative Transaction Timeline Date Announce Transaction Friday, 23 December 2022 First Court Hearing Tuesday, 7 March 2023 Kingwest to Dispatch Scheme Documents to Shareholders and Optionholders Friday, 10 March 202
Slide 17: Acquisition Implications – Peer Comps
Acquisition Implications – Peer Comps1 Combination of attractively priced ounces that belies the inherent value of Merged Group’s assets $140 $120 Enterprise Value (A$ per Resource Ounce) $100 $80 $60 $40 Merged Group $20 $- MGV STK AME MEK VAN AAR KIN AUC HRZ YRL BC8 BTR GML HRN Merge STN MM8 KWR B
Slide 18: Summary
Summary Merger is a logical consolidation of two advanced assets in a prolific gold district and Tier-1 jurisdiction MUTUALLY BENEFICIAL TRANSACTION TO BOTH SETS OF SHAREHOLDERS ✓ Simple transaction rationale and focus for the Merged Group: • Tenure: Western Australia focus and granted Mining Leases
Slide 19: Appendices
APPENDICES INVESTOR PRESENTATION | 19
Slide 20: Brightstar JORC Resource Statement
Appendix 1 BRIGHTSTAR JORC RESOURCE STATEMENT Category MEASURED INDICATED INFERRED TOTAL Deposit Au Cut-off Mt Au g/t Ounces Mt Au g/t Ounces Mt Au g/t Ounces Mt Au g/t Ounces Alpha 0.5 0.62 1.6 33,000 0.38 2.1 25,000 0.46 3.3 48,000 1.4 2.3 106,000 Beta 0.5 0.35 1.7 19,000 0.58 1.6 29,000 0.97 1.7
Slide 21: Detailed Peer Resource Information
Appendix 2 DETAILED PEER RESOURCE INFORMATION1,2 DEVELOPMENT INFERRED ASX CODE COMPANY MARKET CAP1 CASH2 DEBT2 EV MEASURED (OZ) INDICATED (OZ) TOTAL (OZ) GRADE SOURCE STAGE (OZ) Musgrave MGV Pre-Feasibility $117.6 $7.3 - $110.2 - 435 492 927 2.1 ASX 31/5/22 Minerals AUC Ausgold Feasibility $95.4 $8.
Slide 22: Contact
BILL HOBBA GREG BITTAR Managing Director Executive Chairman BillH@brightstarresources.com.au gbittar@kingwestresources.com.au Alex Rovira Alex@brightstarresources.com.au INVESTOR PRESENTATION | 22
Brightstar Resources — Merger or Acquisition (December 2022) on 6ix