Brightstar Resources Limited · ASX:BTR
Brightstar Resources — Merger or Acquisition (March 2024)
38 slides from Brightstar Resources's merger presentation, Mar 25, 2024
Slide 1: Logical Consolidation to Create a Growing West Australian Gold Producer
For personal use only LOGICAL CONSOLIDATION TO CREATE A GROWING WEST AUSTRALIAN GOLD PRODUCER Merger of Brightstar Resources Limited and Linden Gold Alliance Limited MARCH 2024
Slide 2: Important Notices & Disclaimer
Important Notices & Disclaimer Important Notices This presentation (Presentation) regarding the merger of Brightstar Resources Limited (Brightstar or the Company) and Linden Gold Alliance Limited (Linden) has been prepared by Brightstar and has been authorised for release by the Board of Directors o
Slide 3: Important Notices & Disclaimer: JORC and Scoping Study Statements
Important Notices & Disclaimer JORC (2012) Compliance Statement Brightstar Mineral Resources • This presentation contains references to Brightstar’s JORC (2012) Mineral Resources, extracted from the ASX announcements titled “Maiden Link Zone Mineral Resource Estimate” dated 15 November 2023, “Cork F
Slide 4: Merger of West Australian junior gold producers
Merger of West Australian junior gold producers Step change with two mining hubs in world-class districts, existing infrastructure, and a clear low capex path to material production For personal use only Location, Group Production & Mineral Resources Merged Group Location: Laverton Laverton & Menzie
Slide 5: Transaction overview
Transaction overview Unanimous support for transaction to deliver significant value and shared upside for shareholders of both companies All-scrip, recommended off-market takeover bid to acquire 100% of the fully paid ordinary shares of Linden Gold Alliance Limited (Linden) (Offer) Transaction U
Slide 6: Clear strategic rationale
Clear strategic rationale Scale, diversification, infrastructure and balance sheet … a proven recipe for value creation For personal use only 1 Regional consolidation of strategic Laverton-Menzies Mineral Resource base with disciplined focus on mineable ounces 2 Immediately creates a +20kozpa(1) gol
Slide 7: Unlocks material synergies across Laverton portfolio
Unlocks material synergies across Laverton portfolio The enlarged Laverton Gold Project leverages Brightstar’s existing processing infrastructure to unlock shared value Combined Mineral Resources in the Laverton hub of 15Mt at 1.8g/t Au for 862Moz Au(1) For personal use only Wholly-owned Brights
Slide 8: Provides a clear pathway to material production
Provides a clear pathway to material production Combined Scoping Study metrics demonstrate resource base, infrastructure & low capital path up to ~100kozpa production Indicative potential production based on individual Scoping Studies(1)(2): A conceptual combination of Scoping Studies demonstrates:
Slide 9: Experienced & highly credentialled team
Experienced & highly credentialled team Complementary mix of financial, project development and operational mining expertise to drive operational delivery Board of Directors Refreshed Board & Management team focused and aligned For personal use only to deliver value to shareholders Richard Crookes
Slide 10: 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 … implies significant room for growth to valuation in line with peers For personal use only The EV/Production (FY24e)(1) of ASX-listed
Slide 11: Fast-tracked development timetable
Fast-tracked development timetable The scene is set for rapid resource and mine growth over the next 18 months Year CY24 CY25 Year 1 – Bed down operations, fast-track development timetable For personal use only H1 H2 H1 H2 Drilling Focus on mine life extension, Mineral Resource growth and mining stu
Slide 12: 1. Transaction Information
For personal use only 1. Transaction Information
Slide 13: Merger overview
Merger overview Logical consolidation of two junior West Australian gold producers All-scrip, recommended off-market takeover bid to acquire 100% of the fully paid ordinary shares of Linden For personal use only Transaction Under the Offer, Linden shareholders are to receive 6.90 Brightstar shar
Slide 14: Capital raising overview
Capital raising overview Brightstar is seeking to raise up to $12.0m via a two tranche Placement comprising of the issue of up to ~857m new fully paid ordinary shares For personal use only o Tranche 1 of the Placement to raise ~$8.2m utilising existing Placement capacity pursuant to Listing Rules
Slide 15: Merger and Placement – Timetable and Use of Funds
Merger and Placement – Timetable and Use of Funds Indicative Timetable(1) and Use of Funds: Event Date For personal use only Announcement of the proposed completion of Placement Monday, 25 March 2024 Settlement of Tranche 1 of the Placement Friday, 5 April 2024 Lodgement of the Brightstar Bidder’s S
Slide 16: Pro forma snapshot
Pro forma snapshot Capital structure set for growth and re-rating with a strong pro forma shareholder base Pro forma capital structure For personal use only As of ASX close Linden Pro forma(1) Pro forma(2) Pro forma(6) Brightstar Placement 22 March 2024 (as per Offer) (pre money) (post money) (post
Slide 17: 2. Portfolio Overview
For personal use only 2. Portfolio Overview
Slide 18: Project Overview
Project Overview 1.4Moz in Mineral Resource – open and growing to deliver scale to become a significant participant in the WA gold sector Tier-1 jurisdiction with compelling land position in two proven goldfields with multi-million ounce For personal use only endowments: • Significant operations nea
Slide 19: Geographically complementary assets
Geographically complementary assets Two mining hubs in world-class districts, existing infrastructure, and a clear low capex path to ~100kozpa Assets strategically located proximal to processing infrastructure, sealed highways and well- For personal use only maintained gravel roads for low-capex opt
Slide 20: Established operational mining business
Established operational mining business Existing production at record AUD gold prices Brightstar actively monetising its existing Mineral Resource base Second Fortune Underground Mine For personal use only • Selkirk JV mining campaign successfully concluded and toll treated through Linden is current
Slide 21: 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: For personal use only o Cork Tree Well (6.4Mt @ 1.4g/
Slide 22: Laverton Hub: Second Fortune Gold Mine
Laverton Hub: Second Fortune Gold Mine Mining: • Historic production of 38koz from prior owners (before Linden ownership) to 2018 • Under Linden management, the mine was brought out of care & maintenance in 2021 and has subsequently mined +350kt ore @ 3.6g/t Au (incl. lower grade development ore) Fo
Slide 23: 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 For personal use o
Slide 24: 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 For personal use only Highway in Menzies (130km north of Kalgoorlie)
Slide 25: Laverton processing strategy
Laverton processing strategy Assessment of a 1.0Mtpa processing scenario Current site infrastructure has an independent replacement valuation of $60m(1) For personal use only The 2023 Scoping Study articulated a refurbishment and expansion study to upgrade to 480ktpa of fresh rock throughput Total C
Slide 26: Summary
Summary For personal use only Conceptual aggregated Scoping Studies De-risked staged mine plan: Laverton processing plant unlocks deliver 0.45Moz mined over eight years. 2 mining hubs with open pit and expansion and M&A opportunities in the Consolidated PFS underway underground mines in each deliver
Slide 27: Appendices
For personal use only Appendices
Slide 28: Appendix 1: Board & Management
Appendix 1: Board & Management RICHARD ALEX ANDREW DEAN JONATHAN ASHLEY For personal use only CROOKES ROVIRA RICH VALLVE DOWNES FRASER NON-EXEC CHAIRMAN MANAGING DIRECTOR EXECUTIVE DIRECTOR CHIEF OPERATING NON-EXEC DIRECTOR NON-EXEC DIRECTOR OFFICER Mr Crookes has over 35 Mr Rovira is a qualified Mr
Slide 29: Appendix 2: Contingent Payments
Appendix 2: Contingent Payments Summary of contingent payments post-merger Securities / Rights For personal use only Vendors of Lord Byron Mining Pty Ltd – Deferred Consideration: • Tranche A: upon and subject to an announcement by the Company of a JORC 2012-compliant Mineral Resource Estimate for t
Slide 30: Appendix 3: Consolidated Mineral Resources
Appendix 3: Consolidated Mineral Resources LOCATION MEASURED INDICATED INFERRED TOTAL Cut-off Kt g/t Au Koz Kt g/t Au Koz Kt g/t Au Koz Kt g/t Au Koz (g/t Au) For personal use only Alpha 0.5 623 1.6 33 374 2.1 25 455 3.3 48 1,452 2.3 106 Beta 0.5 345 1.7 19 576 1.6 29 961 1.7 54 1,882 1.7 102 Cork T
Slide 31: Appendix 4: Production Peer Comparison
Appendix 4: Production Peer Comparison Annualised EV/Production Market Enterprise DecQ'23 For personal use only Cash Debt Production (DecQ’23 ASX Code Company Capitalisation Value Production Source (A$m)(3) (A$m)(3) (DecQ'23) Annualised) ($m)(1)(2) (A$m)(1) (koz)(3) (koz) (A$/oz) Quarterly Report (D
Slide 32: Appendix 5: Recent M&A in WA Gold Space
Appendix 5: Recent M&A in WA Gold Space Pre-development companies M&A activity for ASX-listed WA pre-production gold assets Enterprise Value per Ounce (A$/oz) (M,I&I)(1) $950/oz For personal use only $226/oz $217/oz $176/oz(2) M&A Average EV/oz of $106/oz* $88/oz(2) $66/oz Brightstar current EV/oz o
Slide 33: Appendix 6: Recent M&A references
Appendix 6: Recent M&A references Pre-production WA Gold M&A Peer Comparison Information & References For personal use only TOTAL Deal Value EV/oz MEASURED INDICATED INFERRED GRADE Acquirer Target Stage Date RESOURCE Source ($Am) ($AUD/oz) (Koz) (Koz) (Koz) (g/t) (Koz) Northern Star Strickland Miner
Slide 34: Appendix 7: Study references
Appendix 7: Study references WA Gold M&A Peer Comparison Information & References for Mining Studies For personal use only Pre-tax Net NPV Discount Capital Source Production Pre-Production Payback NPV/Capex Gold Price Code Company Study Stage Project LOM (Yr) Present Value Rate Used Intensity (ASX D
Slide 35: Appendix 8: Key Risks
Appendix 8: Key Risks The following risks have been identified as being key risks specific to an investment in the Company on the Exploration and development assumption the takeover of Linden (Takeover) is successful (Combined Group) and the mining industry more Exploration is a high risk activity t
Slide 36: Appendix 8: Key Risks continued
Appendix 8: Key Risks continued 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 th
Slide 37: Appendix 8: Key Risks continued
Appendix 8: Key Risks continued Satisfaction or waiver of bid conditions Completion of the Takeover is subject to a number of bid conditions. There can be no certainty, nor can Linden or the Company provide any assurance, that these conditions will be satisfied or waived (where applicable), or if sa
Slide 38: Corporate Video
For personal use only Corporate Video ALEX ROVIRA Managing Director alex@brightstarresources.com.au brightstarresources.com.au
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