Brightstar Resources Limited · ASX:BTR
Brightstar Resources — Merger or Acquisition (August 2024)
47 slides from Brightstar Resources's merger presentation, Aug 1, 2024
Slide 1: Building a Growing West Australian Gold Producer
BUILDING A GROWING WEST AUSTRALIAN GOLD PRODUCER Sandstone | Gum Creek Consolidation AUGUST 2024
Slide 2: Important Notices & Disclaimers
Important Notices & Disclaimers Important Notices This presentation (Presentation) regarding the merger of Brightstar Resources Limited (Brightstar or the Company) and Alto Metals Limited (Alto) has been prepared by Brightstar and has been authorised for release by the Board of Directors of Brightst
Slide 3: Important Notices & Disclaimers: JORC Compliance Statement
Important Notices & Disclaimers JORC (2012) Compliance Statement Brightstar Mineral Resources • This presentation contains references to Brightstar’s JORC (2012) Mineral Resources, extracted from the ASX announcements titled “Aspacia deposit records maiden Mineral Resource at the Menzies Gold Projec
Slide 4: Growth-focused West Australian junior gold producer
Growth-focused West Australian junior gold producer Existing mining & development hubs combined with a third district-scale resource base to drive pathway to material production Location, Production, Mineral Resources & Assets Combined Group Laverton, Menzies & Location: Laverton & Menzies Sandstone
Slide 5: Transaction Summary
Transaction Summary Consolidation of Sandstone strengthens Brightstar’s pipeline of development and production assets to underpin growth strategy • Acquisition of 100% of the fully paid ordinary shares in Alto Metals Limited (Alto) via an Alto scheme of arrangement (Scheme) • Each Alto shareholder w
Slide 6: Transaction Rationale
Transaction Rationale Western Australian gold company with combined assets, team and balance sheet to execute on ambitious growth trajectory • Strategic consolidation of a ~1,100km 2 landholding in the Sandstone region provides new district-scale growth platform to complement existing Brightstar pro
Slide 7: Indicative Timetable
Indicative Timetable Scheme booklet expected to be dispatched to Alto shareholders in early October 2024, ahead of a scheme meeting in early November 2024 and transaction completion in mid November 2024 Event Date Settlement of Placement Tranche 1 Wednesday 7 August 2024 Brightstar EGM to approve Tr
Slide 8: Sandstone Consolidation
SANDSTONE CONSOLIDATION A district-scale resource base
Slide 9: Step Change in Mineral Resources
Step Change in Mineral Resources Pro forma resource base establishes Brightstar at top end of ASX developer landscape and provides re-rate opportunity 3.0Moz 3.0Moz 2.4Moz 2.3Moz 2.1Moz 1.9Moz 1.8Moz 1.8Moz 1.5Moz 1.4Moz 1.3Moz 1.2Moz 1.0Moz 0.9Moz 0.9Moz 0.9Moz 0.5Moz 0.7Moz Pro Forma Ausgold Black
Slide 10: Resource scale and grade
Resource scale and grade Sandstone transactions consistent with Brightstar’s strategy of targeting ‘mineable ounces’ with economies of scale and grade WA GOLD EXPLORERS / DEVELOPERS 4.5 4.0 Rox Resources 3.5 3.0 Great Boulder Meeka Gold Matsa Grade (g/t Au) 2.5 Magnetic Resources Black Cat Medallion
Slide 11: Attractive acquisition multiples
Attractive acquisition multiples Strong M&A activity for ASX-listed WA pre-production gold assets transacting at ~$106/oz (EV/Resource ounce) – AUD gold price has achieved record levels since… stage is set for material value build to the benefit of all new and existing Brightstar shareholders Enterp
Slide 12: Scheme Overview
Scheme Overview All-scrip transaction via the Scheme, unanimously recommended by the Alto Board Structure • Acquisition of 100% of the ordinary shares in Alto via the Scheme under Part 5.1 of the Corporations Act 2001 (Cth) • Each Alto shareholder will receive 4.0 new Brightstar Shares for each 1 Al
Slide 13: Montague Acquisition Overview
Montague Acquisition Overview Cash and scrip transaction to acquire Montague Gold Project currently owned by Gateway (Montague Acquisition) • Acquisition of 100% of the Montague Gold Project Tenements owned by Gateway1 Structure • Acquisition to be completed in new Brightstar SPV – Montague Gold Pro
Slide 14: Regional Context
Regional Context The consolidated Sandstone Project is +100km from existing third-party milling operations in the Murchison A proposed centralised processing plant in Sandstone, fed by shallow, high- grade open pits from within the Montague and Sandstone Projects, would create significant value fo
Slide 15: Alto Metals | Overview
Alto Metals | Overview A highly attractive land package with +1Moz in resource with material brownfields and greenfields exploration potential Strategic ground position of +740km2 over the Sandstone Greenstone Belt, in Western Australia Surrounded by multi-million ounce gold deposits and produci
Slide 16: Gateway Mining | Overview
Gateway Mining | Overview The Montague Gold Project is an attractive opportunity that is highly synergistic with the Alto transaction Montague Gold Project being acquired covers ~450km2 of tenure in a well-endowed belt Located 70km NNE of Alto’s Sandstone Gold Project along the Sandstone-Wiluna
Slide 17: Funding Overview
Funding Overview Placement, Strategic Partner & Proforma Capital Structure
Slide 18: Placement Overview
Placement Overview Proposal to raise $24.0m (before costs) at $0.015 per share via an Institutional two-tranche placement Brightstar to raise up to $24.0m via a two tranche Placement comprising of the issue of up to ~1,600m new fully paid ordinary shares o Tranche 1 of the Placement to raise ~$17m
Slide 19: Strategic Partner to fund Brightstar mill refurbishment
Strategic Partner to fund Brightstar mill refurbishment Non-binding indicative offer (NBIO) signed with South Korean investor for a $40m financing package Highlights Strategic Partnership • Multi-tranche investment of $40.0m including an upfront $4.0m equity investment (Equity Investment) and a $36.
Slide 20: Proforma Capital Structure & Ownership
Proforma Capital Structure & Ownership Placement, Topdrill & As of ASX close 30 July 2024 Units Brightstar Alto Scheme Montague Acquisition Pro forma Brightstar Genesis Minerals Pricing and Key Terms Share Price $/share 0.015 0.033 0.015 0.015 0.015 1 Mineral Resources Moz 1.5 1.0 0.5 3.0 Scheme Off
Slide 21: Why Brightstar?
Why Brightstar? Assets, team and balance sheet to execute
Slide 22: Corporate Snapshot | Current
Corporate Snapshot | Current Key Metrics (pre-Placement) Board & Key Executives Key Shareholders Institutional / Professional RICHARD CROOKES ALEX ROVIRA Investors $0.015 4.7b NON-EXEC CHAIRMAN MANAGING DIRECTOR HNW / Retail 28% Share Price Shares on issue 46% ANDREW RICH ASHLEY FRASER $71m $10m EXE
Slide 23: Brightstar team to execute
Brightstar team to execute Aligned team with skills to execute – exploration, resource growth, studies, mine development, finance and production ANDREW RICH DEAN VALLVE TIM CLARKE Mine Development & EXECUTIVE DIRECTOR - OPERATIONS CHIEF OPERATING OFFICER ENVIRONMENTAL MANAGER Linden – Joined BTR Jun
Slide 24: Brightstar value proposition
Brightstar value proposition Building the next Western Australian mid-tier gold producer 1 Focused on logical and strategic consolidation targeting undervalued and mineable ounces in Western Australia 2 Existing production, record AUD gold price and processing infrastructure - low risk, low capex pa
Slide 25: Provides a platform to achieve a potential re-rating
Provides a platform to achieve a potential re-rating Significant room for growth in shareholder value through operational delivery of substantial production run-rate The EV/Production (FY24e) of ASX-listed junior gold producers … implies significant room for growth to valuation in line with peers EV
Slide 26: Project Overviews
Project Overviews
Slide 27: Geographically complementary assets
Geographically complementary assets Focused mining hubs in proven gold districts, existing infrastructure, and a clear low capex path to mid-tier production profile Assets strategically located proximal to processing infrastructure, sealed highways and well- maintained gravel roads for low-capex opt
Slide 28: Sandstone Project – Significant scale with exploration upside
Sandstone Project – Significant scale with exploration upside Despite having delineated a meaningful 1.0Moz Au Mineral Resource, significant exploration upside exists at the underexplored Sandstone Gold Project Strategic ground position of +740km2 over the Sandstone Greenstone Belt - a prolific mi
Slide 29: Montague Project – Strategic, shallow oxide ounces
Montague Project – Strategic, shallow oxide ounces 0.5Moz of Mineral Resources within a +1Moz Au endowed belt immediately adjacent tenure Projects being acquired: o 19 tenements being purchased by Brightstar, covering ~450km2 o Tenements to be acquired includes all gold mineral rights o Gateway and
Slide 30: Laverton Hub: Cork Tree Well, Alpha, Beta
Laverton Hub: Cork Tree Well, Alpha, Beta Consolidation of strategic Laverton assets to provide critical mass for potential restart and upgrade of the Brightstar mill Existing Brightstar Laverton portfolio is spread across multiple project areas: o Cork Tree Well (6.4Mt @ 1.4g/t Au for 303koz Au) o
Slide 31: Laverton Hub: Second Fortune Gold Mine Overview
Laverton Hub: Second Fortune Gold Mine Overview Mining: Under Linden management, the mine was brought out of care & maintenance in 2021 and has subsequently mined +360kt ore @ 3.6g/t Au (incl. lower grade development ore) Brightstar operates an owner-operator model with its own fleet and workforce a
Slide 32: Laverton Hub: Jasper Hills Gold Project
Laverton Hub: Jasper Hills Gold Project Lord Byron OP provides potential ‘base load’ processing feed and Fish UG provides potential high-grade +4g/t Au feed Jasper Hills is located 50km from Brightstar’s existing processing facility along a wholly-owned private haul road, allowing unimpeded, direct
Slide 33: Menzies Hub overview
Menzies Hub overview Consists of a tenement holding of a contiguous land package of granted mining leases over a strike length of +20km Majority of deposits are hosted along the Menzies Shear Zone and located adjacent to Goldfields Highway in Menzies (130km north of Kalgoorlie) A series of historica
Slide 34: Laverton processing strategy
Laverton processing strategy Assessment of enlarged processing scenario Current site infrastructure has an independent replacement valuation of $60m(1) The 2023 Scoping Study articulated a refurbishment and expansion study to upgrade to 480ktpa of fresh rock throughput Total Capital Cost $18.5m(2) o
Slide 35: Active business in a rising gold price environment
Active business in a rising gold price environment Track record in meaningful advancement of strategic initiatives – next catalysts in sight Dec 2022 2023 1H 2024 2H 2024 +$20m of new equity (ex-current Placement) and strengthened register with strategic and institutional shareholders Corporate / M&
Slide 36: A Bright spot despite a challenging equity market
A Bright spot despite a challenging equity market Over the past 12 months, the AUD gold price has rallied 20% - despite this strengthening commodity backdrop, equity valuations and interest remains subdued: AUD Gold price - up 20% WA Gold Producer average1 - up 52% Van Eck GDX and GDXJ Indices - 52
Slide 37: Appendices
Appendices
Slide 38: Appendix 1: Board of Directors
Appendix 1: Board of Directors RICHARD ALEX ANDREW JONATHAN ASHLEY MATTHEW CROOKES ROVIRA RICH DOWNES FRASER BOWLES NON-EXEC CHAIRMAN MANAGING DIRECTOR EXECUTIVE DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR (PROPOSED) Mr Crookes has over 35 years’ Mr Rovira is a qualified Mr Rich i
Slide 39: Appendix 2: Brightstar Mineral Resources
Appendix 2: Brightstar Mineral Resources Location Cut-off Measured Indicated Inferred Total g/t Au kt g/t Au koz kt g/t Au koz kt g/t Au koz kt g/t Au koz Alpha 0.50 623 1.6 33 374 2.1 25 455 3.3 48 1,452 2.3 106 Beta 0.50 345 1.7 19 576 1.6 29 961 1.7 54 1,882 1.7 102 Cork Tree Well 0.50 - - - 3,03
Slide 40: Appendix 3: Sandstone Mineral Resources
Appendix 3: Sandstone Mineral Resources Location Cut-off Measured Indicated Inferred Total CONSTRAINED (April 2023) g/t Au Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Lord Nelson 0.50 - - - 1.5 2.1 100 3.5 1.4 163 5.0 1.6 263 Lord Henry 0.50 - - - 1.6 1.5 77 0.3 1.2 13 1.9 1.4 90 Vanguar
Slide 41: Appendix 4: Montague Gold Project Mineral Resources
Appendix 4: Montague Gold Project Mineral Resources Location Cut-off Measured Indicated Inferred Total g/t Au Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Montague-Boulder 0.60 - - - 0.5 4.0 67 2.6 1.2 96 3.1 1.6 163 Whistler 0.50 - - - - - - 1.7 2.2 120 1.7 2.2 120 Evermore 0.60 - - - -
Slide 42: Appendix 5: Montague Gold Project Acquisition
Appendix 5: Montague Gold Project Acquisition • Acquisition of 100% of the Montague Gold Project Tenements owned by Gateway1 Structure • Acquisition to be completed in new Brightstar SPV – Montague Gold Project Pty Ltd • Non-gold mineral rights sold back to Gateway / other entities • Total considera
Slide 43: Appendix 6: Peer Comparison & References
Appendix 6: Peer Comparison & References TOTAL RESOURCE CODE COMPANY STAGE MARKET CAP (A$M) CASH (A$M) EV (A$M) SHARE PRICE MEASURED (Koz) INDICATED (Koz) INFERRED (Koz) GRADE (g/t) $EV/oz SOURCE DATE (Moz) MAU Magnetic Resources Resource $327.7 $9.0 $318.7 $1.270 203 402 1.33 1.7 $240 Investor Pres
Slide 44: Appendix 7: Recent M&A References
Appendix 7: Recent M&A References Pre-production WA Gold M&A Peer Comparison Information & References Total Deal Value EV/oz Measured Indicated Inferred Grade Acquirer Target Stage Date Resource Source ($m) ($/oz) (koz) (koz) (koz) (g/t Au) (koz) Northern Star Strickland Minerals Resource Jun-23 $61
Slide 45: Appendix 8: Production Peer Comparison
Appendix 8: Production Peer Comparison Production Peers Information & References EV/Production Market JunQ’24 Annualised ASX Cash** Debt*** Enterprise Value (JunQ’24 Company Capitalisation* Production Production Source Code ($m) ($m) ($m) Annualised) ($m) (koz) (JunQ’24) (koz) ($/oz) ASX Announcemen
Slide 46: Appendix 9: Key Risks
Appendix 9: Key Risks The following risks have been identified as being key risks specific to an investment in Brightstar Exploration and development on the assumption the transactions with Alto (Scheme) and Gateway are successful (Combined Group) and the Exploration is a high risk activity that req
Slide 47: Appendix 9: Key Risks
Appendix 9: Key Risks Foreign exchange risk Litigation risks The Company has an Australian dollar presentation currency for reporting purposes. However, gold is sold The Combined Group is exposed to possible litigation risks including contractual disputes and employee claims. throughout the world ba
Brightstar Resources — Merger or Acquisition (August 2024) on 6ix