Gateway Mining Ltd announces sale of gold rights to Brightstar Resources

Gateway Mining Ltd (ASX: $GML) has finalized a binding agreement with Brightstar Resources Limited (ASX: $BTR) for the sale of its gold rights within the eastern tenement block of the Montague Project. The total consideration payable to Gateway is $14 million, comprising $5 million in cash, $7 million in Brightstar Shares, and $2 million in deferred Brightstar Shares (subject to milestones). Gateway will retain ownership of all other mineral rights within the Montague East Tenement Group, allowing it to focus on ongoing aggressive exploration for Cu-Ni-PGE.

Executive Commentary on the Transaction

Gateway's Managing Director, Mr Mark Cossom, expressed his delight in finalizing the agreement with Brightstar Resources, emphasizing the immediate cash influx into the company's balance sheet and the opportunity to participate in an emerging consolidation play in the Sandstone region through a significant shareholding in Brightstar. He highlighted the strategic rationalization achieved by divesting more advanced assets while retaining exposure to value-creating exploration opportunities. Mr Cossom also emphasized the strengthened balance sheet, positioning Gateway favorably in the challenging equity market for the junior resource sector. He expressed excitement about progressing exploration opportunities and evaluating new growth and business development possibilities consistent with the company's strategy, while also looking forward to supporting Brightstar in their growth journey.

Summary of the Transaction and Outlook

Gateway Mining Ltd has successfully sold its gold rights within the eastern tenement block of the Montague Project to Brightstar Resources for $14 million, comprising cash and shares. The transaction allows Gateway to focus on aggressive exploration for Cu-Ni-PGE, retaining ownership of all other mineral rights within the Montague East Tenement Group. The company's Managing Director, Mr Mark Cossom, highlighted the enhanced cash and liquidity position, enabling Gateway to take advantage of new growth and business development opportunities. The company's immediate focus will be on systematic copper-nickel-PGE exploration at its Flametree and Montague Range targets, along with early-stage exploration at new gold targets on the Montague West group of tenements. The successful sale positions Gateway to capitalize on its strategic exploration opportunities and support Brightstar's growth journey, while maintaining an enviable position in the junior resource sector.