Brightstar Resources signs significant drill-for-equity agreement with Topdrill

Brightstar Resources Limited (ASX:BTR) has executed a significant drill-for-equity agreement with Topdrill Pty Ltd (Topdrill) worth $4 million, allowing up to 50% of future drilling services invoiced by Topdrill to be paid in Brightstar ordinary shares. This agreement complements the existing arrangement and underpins the strong working relationship between Brightstar and Topdrill.

Executive Commentary on Drill-for-Equity Agreement

We are pleased to expand materially upon the strong relationship with Topdrill and the existing drill-for-equity agreement, which aligns with our strategic ambition of partnering with tier 1 industry partners as we seek to genuinely build a WA-focused gold exploration, development and production business in a rising gold price environment. The significant investment offers a cost-effective approach to enhance our aggressive exploration plans across Brightstar's growing gold project portfolio and demonstrates Topdrill's confidence in Brightstar's team, assets, and development plan of organically growing gold production to become a material, multi-asset producer in Western Australia. It is fantastic to see Topdrill's commitment to not only Brightstar, but a number of emerging ASX-listed WA gold exploration companies with promising projects. This funding assistance, against the backdrop of continuing challenging equity capital markets, to effectively enable companies to drill more holes and discover more gold, is great to see and has a meaningful benefit to the junior exploration sector. Brightstar applauds Tim Topham and the team for this approach to working with the junior resources sector to enable more exploration and potential discoveries in WA.

Summary of Drill-for-Equity Agreement

Brightstar Resources Limited has executed a significant drill-for-equity agreement with Topdrill Pty Ltd worth $4 million, allowing up to 50% of future drilling services invoiced by Topdrill to be paid in Brightstar ordinary shares. This agreement complements the existing arrangement and underpins the strong working relationship between Brightstar and Topdrill. The agreement cornerstones Brightstar's multi-drill rig exploration program to aggressively advance the consolidated Sandstone Project post the completion of the transactions with Alto Metals Ltd and Gateway Mining Ltd. Subject to the successful completion of the transactions, Brightstar anticipates mobilising a drill rig for infill and extensional drilling programs across the Gum Creek and Sandstone properties to advance the projects meaningfully towards mining studies and ultimate commercialisation of the significant mineral resource endowment. The drill-for-equity agreement offers a cost-effective approach to enhance Brightstar's aggressive exploration plans and demonstrates Topdrill's confidence in Brightstar's team, assets, and development plan. The voluntary escrow of equity issued via the arrangement for six months provides additional assurance. Brightstar's strategic ambition of partnering with tier 1 industry partners and becoming a substantial ASX gold producer is further supported by this significant investment.