Lion's increased participation in Brightstar placement

Lion Selection Group Limited (Lion, ASX:LSX) has announced its increased participation in the $24M equity fundraising by Brightstar Resources Limited (Brightstar, ASX:BTR). Lion's additional investment of $1.5M in tranche two of the placement, on top of the previously committed $4.3M, will bring Lion's total investment in Brightstar to $5.8M. This will make Lion a 6.1% shareholder in the enlarged Brightstar, subject to the completion of all transactions announced on 2 August 2024.

Executive Commentary on Brightstar's Potential

Brightstar's potential to bridge the gap between gold explorers and producers is evident. The market's valuation of gold producers at a premium presents an opportunity for Brightstar to become a gold producer without excessive finance or hedging, with a strong organic growth pipeline. This aligns with Lion's investment strategy, and we are pleased to increase our holding in Brightstar, considering its genuine proposition and potential for growth.

Summary of Brightstar's Strategy and Outlook

Brightstar's strategy to apply cash flow from gold production to fund growth, along with the consolidation and acquisition of the Sandstone project, positions the company for significant expansion. With established gold resources at Laverton, Menzies, and Sandstone, Brightstar is set to become a large gold producer with a pro-forma combined gold resource of 3.0Moz. The announced capital raising strengthens Brightstar's funding, supporting its potential to achieve substantial growth. The company's focus on production and exploration presents a positive outlook for its future as a key player in the gold industry.