A binding scheme implementation deed with Alto Metals and a tenement sale agreement with Gateway Mining will help position Brightstar Resources as a “significant junior West Australian gold explorer, developer and producer”.
The binding scheme implementation deed (SID) will see Brightstar Resources acquire 100 per cent of the shares in Alto Metals, and each Alto shareholder receive four new Brightstar shares for each Alto share held.
Brightstar Resources and Alto Metals Limited entered the binding scheme implementation deed, under which Alto agrees to propose a scheme of arrangement between Alto and its shareholders.
Alto said the Board unanimously recommends the scheme, and that Alto’s directors intend to vote all Alto shares in which they have a relevant interest in favour of the scheme.
In addition to the scheme, Brightstar, via a newly incorporated wholly-owned SPV Montague Gold Project (MGP), has entered into a tenement sale agreement with Gateway Mining and its wholly-owned subsidiary Gateway Projects (GPWA). Under the agreement, MGP proposes to acquire Gateway and GPWA’s interests held in certain mining tenures with respect to Gateway’s Montague East Gold Project, with MGP obtaining 100 per cent of the gold mineral rights and Gateway retaining all other mineral rights.
The Montague acquisition is not conditional on the scheme completing and, subject to the satisfaction of the relevant conditions precedent, will proceed independently of the scheme with Alto.
The scheme and Montague acquisition will consolidate highly prospective exploration grounds in the Sandstone region which will complement Brightstar’s existing production, development and exploration asset portfolio, for the benefit of both Brightstar, Alto and Gateway shareholders.
Brightstar’s Managing Director, Alex Rovira, said, “This is a compelling transaction for all stakeholders, as the sensible consolidation of the Sandstone and Montague East Gold Projects delivers an asset base with the critical mass to be advanced towards meaningful production.
“The Sandstone Hub has the mineral endowment and exploration upside to be a significant development opportunity in Western Australia in the coming years and presents as an asset with potential to support Brightstar’s aggressive growth ambitions to become a multi asset mid-tier Western Australian gold producer.
“Brightstar has the team and experience to fast-track the exploration and development of the Sandstone assets in parallel with the development of the Menzies and Laverton Gold Projects, to underpin Brightstar’s ambitions of becoming a multi-asset producer in Western Australia.
“It is fantastic to see the strong support of specialist natural resource institutional investors and strategic mining participants in the raise, which demonstrates support for Brightstar’s growth as we intend to deliver value to our shareholders as we de-risk the projects towards sustainable mining operations.”
Alto’s Managing Director, Matthew Bowles, said, “The scheme is a key step towards building a significant gold business and provides Alto shareholders with an exciting opportunity to become part of an emerging gold producer.”
“In addition to delivering a significant premium, the scheme, if approved and implemented, will allow Alto shareholders to retain ongoing exposure to the development of the Sandstone Gold Project, as part of a larger resources group holding multiple projects, which will reduce the risks associated with holding a single project.
“We believe this transaction is a great outcome for Alto shareholders and stakeholders, who will benefit from the development of the Sandstone Gold Project as part of an enlarged gold company with an exciting future.”
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