ABN 44 100 727 491
Annual Report
For the year ended 30 June 2023
Brightstar Resources Limited
Contents
CORPORATE INFORMATION .......................................................................................................................... 1
CHAIRMAN’S LETTER TO SHAREHOLDERS................................................................................................. 2
DIRECTORS’ REPORT ..................................................................................................................................... 3
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................. 25
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ......... 26
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................................... 27
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................................... 28
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ......................................................................... 29
NOTES TO THE FINANCIAL STATEMENTS ................................................................................................. 30
DIRECTORS’ DECLARATION ........................................................................................................................ 60
INDEPENDENT AUDIT’S REPORT ................................................................................................................ 61
CORPORATE GOVERNANCE STATEMENT ................................................................................................ 68
ASX ADDITIONAL INFORMATION ................................................................................................................. 69
- 1 -
Brightstar Resources Limited
CORPORATE INFORMATION
ABN 44 100 727 491
Directors
Mr Alexander Rovira
Mr Gregory Bittar
Mr Jonathan Downes
Mr Josh Hunt
Mr Tony Lau
Managing Director
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Company Secretaries
Mr Benjamin Smith
Mr Luke Wang
Joint Company Secretary
Joint Company Secretary
Registered and Principal Office
Level 2, 36 Rowland Street
Subiaco WA 6008
Telephone: (618) 9277 6008
Facsimile: (618) 9277 6002
Email: info@brightstarresources.com.au
www.brightstarresources.com.au/
Share register
Computershare Investor Services Pty Limited
Level 17, 221 St Georges Terrace
Perth WA 6000
Telephone; (618) 9323 2000
Facsimile: (618) 9323 2033
Solicitors
Hamilton Locke
Level 48,152-158 St Georges Terrace
Perth WA 6000
Bankers
Westpac Banking Corporation
130 Rokeby Rd (Cnr Barker)
Subiaco WA 6008
Auditors
Pitcher Partners BA&A Pty Ltd
Level 11, 12-14 The Esplanade
Perth WA 6000
Securities Exchange Listings
ASX Code: BTR
CHAIRMAN’S LETTER TO SHAREHOLDERS
- 2 -
Dear Shareholders,
Brightstar Resources Limited
I am pleased to report on what has been an exciting and transformational year for Brightstar Resources.
Against the backdrop of a challenging equity market for junior gold companies, Brightstar has delivered a
high level of intensity at both the corporate and project levels which puts us on the path to becoming a low-
capex, long-life gold producer across our 100% owned Menzies and Laverton Gold Projects.
In August 2022, Brightstar delivered an update to the Mineral Resource Estimate (“MRE”) at Cork Tree Well.
The MRE update to 252,100 ounces (5.61Mt @ 1.4 g/t Au) was based on infill and extensional drilling
completed by Brightstar and provides us with increased confidence in the resource. The Company also
undertook two capital raisings in the December Quarter 2022 and in early 2023, raising a total of $2.2 million.
In December 2022, it was announced that Brightstar and Kingwest Resources Limited had agreed to a
merger via a Scheme of Arrangement under which Brightstar will acquire 100% of the shares in Kingwest.
The merger represented a strategic consolidation of the gold assets of Brightstar and Kingwest to materially
increase scale to the benefit of all shareholders and reduce timeline to potential production scenarios. The
merged group would initially have a combined JORC Resource of ~960koz Au, including high-grade domains
at Kingwest’s Menzies Gold Project, located 130km north of Kalgoorlie.
Along with the proposed merger, Alex Rovira was appointed Managing Director in January 2023. With a
background in geology and corporate finance, Alex’s strong experience and expertise in the metals and
mining sector has already proven invaluable in positioning Brightstar as a near term gold producer.
A key achievement for the second half of the year was the completion of the merger with Kingwest
Resources, following shareholder approval in May 2023.
A toll milling agreement was executed with St Barbara for the Selkirk Mining Joint Venture (JV) with BML
Ventures Pty Ltd. At the time of publishing this report, mining by the JV is well underway with the mining
campaign expected to complete in Q1 CY2024 followed by haulage and processing of ore at the Gwalia
processing plant.
Exploration continued during the March and June quarters 2023 with a ~6,000 metre RC drilling program
completed at the Cork Tree Well deposit within the Laverton Gold Project, and a 5,000 metre drilling program
at the Aspacia and Lady Irene Deposits at the Menzies Gold Project. The Cork Tree Well drilling supported
an upgraded MRE at Cork Tree Well with a 20% increase in ounces to 303koz @ 1.4g/t Au and a
subsequent uplift to the total MRE of 1.02Moz Au as announced on 23 June 2023.
The momentum of activity allowed the Company to undertake a $3.5 million capital raising post 30 June
2023. This funding allows us to continue pursue our exploration and development strategy across both of
Brightstar’s projects, focussing on a Scoping Study assessing the combined Laverton and Menzies Projects’
potential for near-term, long life production which was released in early September 2023.
I would like to take this opportunity to recognise the considerable activity and hard work by the team at
Brightstar and to thank my fellow directors, the Brightstar team and our consultants. I would also like to
express our appreciation to our shareholders for their continued support and confidence that Brightstar will
deliver long term shareholder value.
Gregory Bittar
Chairman
29 September 2023
-3-
Brightstar Resources Limited
DIRECTORS’ REPORT
The directors present their report together with the financial report of the consolidated entity consisting of Brightstar
Resources Limited (“BTR” or “Company”) and its controlled entities (the Group) for the financial year ended 30 June 2023,
and independent audit report thereon.
Review of operations
Brightstar Projects
Cork Tree Well – Drilling and Resource Upgrade
Three RC drilling programs were completed at the Cork Tree Well (CTW) Project during the year. Significant intercepts
from the programs include:
•
•
•
•
•
•
5m @ 9.46g/t Au from 103m and 4m @ 2.56g/t Au from 169m (BTRRC171)1
11m @ 2.54g/t Au from 83m (BTRRC150)1
7m @ 3.11g/t Au from 119m (BTRRC154)1
10m @ 4.54g/t Au from 192m (BTRRC184), including: 2m @ 17.23g/t Au from 194m2
2m @ 11.81g/t Au from 172m (BTRRC200)2
13m @ 1.83g/t Au from 143m (BTRRC223)2
The majority of the drill holes in the CTW RC program were designed to intersect the projected mineralised zone at the
deepest point on each section, seeking to grow the MRE down dip and also increase the drill density in certain areas to
generate Indicated JORC Resources. The results indicate that the mineralised system is open both along strike to the
north and at depth, and that further drill testing is required to continue to grow the mineralised footprint (Figure 1). Post-
year end, in July, Brightstar commenced a ~2,000m RC drilling program at CTW targeting the emerging trend of high-
grade plunging shoots within the extensive mineralised system.
Figure 1: Cork Tree Well MRE long section (Gold grade bins).
Cork Tree Well Resource Upgrade
The Mineral Resource Estimate for CTW was updated twice during the year, in August 2022 and June 2023. For the
June 2023 update, Mining consultants ABGM Pty Ltd were engaged to provide an independent JORC 2012 Mineral
Resource Estimate for CTW, which resulted in a 20% increase in ounces to 303koz comprising a 65% upgrade in
Indicated material, now comprising 157koz @ 1.6g/t Au3. Importantly for mining studies underway, the Indicated category
resources at CTW now account for over 51% of the resource ounces (Table 1).
DIRECTORS’ REPORT (continued)
-4-
Table 1: Cork Tree Well Model variances.
Brightstar Resources Limited
Model Date
Measured
Indicated
Inferred
Total
Au Cut-
off (g/t)
0.5
0.5
(unit)
(%)
August 2022
June 2023
Variance
Variance
Kt
g/t Au
Koz
Kt
g/t Au
Koz
Kt
g/t Au
Koz
Kt
g/t Au
Koz
-
-
-
-
-
-
-
-
-
-
-
-
1,759
3,036
1,277
173%
1.7
1.6
-0.1
95
157
62
94%
165%
3,851
3,501
-350
91%
1.3
1.3
0
158
5,610
146
-12
6,357
747
1.4
1.4
0
252
303
51
100%
92%
113%
100%
120%
Note 1: Refer to release on 23 June 2023 for further details. Some rounding discrepancies may occur
Delta 2 Drilling
A first pass RC drilling campaign was completed at the Delta 2 Prospect (2.5km from CTW) in 2022 and identified a new
mineralised system over 300m of strike that remains open at depth and along strike. The program consisted of 12 holes
and significant results returned include4:
•
•
•
2m @ 6.05g/t Au from 29m (BTRRC202)
1m @ 5.31g/t AU from 102m (BTRRC207)
2m @ 2.42g/t Au from 94m (BTRRC211)
These holes were designed to test for an east dipping mineralised structure striking approximately north-south. This design
was based on knowledge gained from exploring the CTW deposit and orientations interpreted from the supergene anomaly
in the historical aircore drilling (mentioned in ASX announcement “10,000m RC Drilling Program at Cork Tree Well to
Commence”, 30 March 2022).
The intersection of anomalous gold numbers across three sections over ~300m of strike length has considerably improved
the potential for discovery of a significant mineralised system at Delta 2. In particular, the intersections found in bedrock of
>1g/t provide an indication of the potential of the system to host more than just a shallow supergene mineralisation (Figure
2).
Figure 2: Cross section of bedrock testing at Delta 2 (BTTRC202, BTRRC206 and BTRRC207).
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
-5-
Alpha West Drilling
The results returned from the RC drilling at Alpha West confirmed the existence of mineralisation in the fresh rock below
the supergene halo in the regolith. Even where the intersections are not ore grade there is still anomalous material showing
the continuity of the mineralised structure. This will therefore require further drilling to determine if the opportunity for a
small open pit exists as well as potential for a secondary access from surface for future potential underground positions.
From initial interpretation it appears that the mineralisation is essentially similar to the main Alpha deposit; relatively narrow
higher-grade material trending WNW strike and dipping NNE.
Like the Alpha deposit there is significant upside available in this type of higher-grade, nuggety mineralisation if the controls
on mineralisation can be determined. These results are very encouraging as they may provide the chance to develop a
second shoot ostensibly on the same trend as the Alpha deposit. The shoot appears to be reasonably well constrained
along strike over approximately 200m however the down-dip/down-plunge extent is unknown with only the top 80m
effectively tested along this strike extent. It is highly encouraging to note the high grades of the intersections in BTRRC130;
which returned 5m @ 9.8g/t Au from 98m; and BTRRC142 which returned 2m @ 11.3g/t Au from 88m5 (Figure 3); as they
are significantly higher grade than the holes above them on the section. This shows that a single drillhole does not
effectively close off this mineralised structure in any given dimension, and therefore an effective planned pattern of drilling
will likely be required to optimise this type of mineralisation and maximise its potential.
Figure 3: Bedrock testing of Alpha West - BTRRC142.
Scoping Study
During the June Quarter, Brightstar engaged GR Engineering Services Pty Ltd (GRES) and ABGM Pty Ltd (ABGM) to
complete studies into the refurbishment and expansion of the Laverton Processing Plant, along with mining optimisations
and schedules associated with the extraction of mineral resources across the Brightstar resource base at Menzies and
Laverton. Both key consultants have recent and relevant experience in these studies, with GRES currently constructing
the Bellevue Gold (ASX:BGL) 1Mtpa processing facility, whilst ABGM’s expertise lies in mine design, scheduling and
economic evaluation including complex operations such as Hot Chili Ltd’s Costa Fuego project (ASX:HCH).
A Scoping Study was released on 6 September 2023 and subsequent to this reporting period the delivered a positive result
and most importantly, utilised the resources at both the Menzies and Laverton districts in a stepped approach to minimise
capital cost requirements. This strategic pathway has provided indicative capital and operating costs for future operations,
identified suitable processing solutions for mineral resources including owner-processing at Brightstar or potential 3rd party
options, and supports on-going discussions for non-dilutive financing options for a potentially low capital production re-start
scenario which will deliver a pathway to production allowing Brightstar to become a gold producer.
The Scoping Study will be used to guide resource definition exploration efforts into the key deposits scheduled for early
mining and cashflow generation, resulting in greater confidence and information on the first mines Brightstar will develop
and operate across the portfolio which will manifest as a low-risk mining operation in the crucial early stages of the LOM.
-6-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Kingwest Resources Limited Activities
Menzies
Lady Irene & Aspacia
Brightstar commenced its inaugural RC drilling campaign at Menzies during the June Quarter, with drilling starting at the
Lady Irene deposit located ~7km northwest of Menzies. Drilling continued to quarter end at the Aspacia project, with a
small program at the Lady Shenton-Lady Irene “Link Zone” (Figure 4) testing shallow oxide mineralisation potential between
the two resources with a combined +300koz JORC2012-compliant resource (Table 3). Subsequent to the year end; high
grades were confirmed in numerous holes at Aspacia6 including:
•
•
•
1m @ 39.58g/t Au from 56m (MGPRC020)
1m @ 12.12g/t Au from 113m (MGPRC014)
2m @ 5.35g/t Au from 48m (MGPRC012);
Along with intercepts from Lady Irene6 including:
•
8m @ 4.09g/t Au from 138m in MGPRC009
Figure 4: Location of the Menzies 2023 drill programs.
Selkirk
An infill drilling program was completed by BML at the Selkirk Deposit in August 2022, which further confirmed the high-
grade nature of the gold mineralisation. Numerous high-grade intervals were intersected including7:
•
•
•
•
•
•
6m @ 24.62 g/t Au from 92m in 22SKRC017
3m @ 14.68 g/t Au from 47m in 22SKRC008
2m @ 12.55 g/t Au from 32m in 22SKRC001
2m @ 13.44 g/t Au from 55m in 22SKRC012
3m @ 7.91 g/t Au from 82m in 22SKRC016
1m @ 20.70 g/t Au from 13m in 22SKRC012
After the drilling was completed, a Mining Proposal and Mine Closure Plan were submitted to the Western Australian
Department of Mines, Industry Regulation and Safety by BML in its capacity as JV partner and manager of the Selkirk
Cutback Project.
During the March Quarter, St Barbara Limited (ASX:SBM) fully executed documentation for toll milling of ore from the
Selkirk Joint Venture. That was the last agreement required to formally complete the BML Ventures Joint Venture
agreement. Mining commenced at the Selkirk Deposit subsequent to the year end, in August 2023 with ore to be processed
at St Barbara’s Leonora processing plant, located approximately 100km north of Menzies.
DIRECTORS’ REPORT (continued)
-7-
Stirling & Pericles
Two infill drilling programs were conducted at Stirling and Pericles during the year, with the aim to increase the
confidence in grade and mineralisation continuity. Significant intercepts returned include8,9:
Brightstar Resources Limited
Stirling
• KWR369: 2m @ 10.61 g/t Au from 100m, including 1m @ 17.08 g/t Au from 100m
• KWR367: 1m @ 10.22 g/t Au from 67m
• KWR315: 1m @ 108 g/t Au from 36m
• KWR316: 5m @ 8.49 g/t Au from 42m including 1m @ 36.69 g/t Au from 42m
• KWR329: 1m @ 10.0 g/t Au from 66m
• KWR312A: 4m @ 5.70 g/t Au from 29m including 1m @ 21.58 g/t Au from 32m
• KWR312: 2m @ 9.05 g/t Au from 32m including 1m @ 15.46 g/t Au from 33m
Pericles
• KWR361: 2m @ 27.80 g/t Au from 49m
• KWR365: 4m @ 3.74 g/t Au from 32m, including 1m @ 7.95 g/t Au from 32m and 1m @ 9.05 g/t Au from 103m
• KWR331: 5m @ 10.11 g/t Au from 47m including 3m @ 15.83 g/t Au from 47
• KWR333: 6m @ 3.86 g/t Au from 27m including 1m @ 17.59 g/t Au from 27
• KWR335: 1m @ 8.83 g/t Au from 32
• KWR338: 1m @ 14.29 g/t Au from 18m
• KWR343: 7m @ 5.92 g/t Au from 32
• KWR347: 1m @ 9.03 g/t Au from 17m and 1m @ 10.25 g/t Au from 25m
The Pericles and Stirling deposits reflect the unique potential of the MGP, with near surface and high grade mineralisation
present. Both deposits are expected to be a key component of the future development of the Menzies Project. The
programme has also highlighted opportunities for high grade down-dip extensions, which represent potential target drilling
areas for underground mining considerations (Figure 5 and Figure 6).
The holes were planned during updated resource estimation work for both Stirling and Pericles which were being completed
as the drilling commenced in November 2022. The resource estimation work also highlighted the opportunities for high
grade extensions that were not fully tested in these recent drilling campaigns.
Figure 5: Cross section from Pericles showing the location of infill holes KWR360 and KWR361.
DIRECTORS’ REPORT (continued)
-8-
Brightstar Resources Limited
Figure 6: Cross sections from Stirling showing the location of infill drill hole KWR369.
Updated resource calculations conducted in the December Quarter identified shallow high-grade subsets of the Pericles
and Stirling deposits with 45,000 ounces at 5.2g/t (Table 2) identified within 100m of surface10:
Table 2: Resources classification of the Pericles and Stirling high-grade resources.
Type
Tonnes
Indicated
Inferred
Au
g/t
Au
Tonnes
Ounces
T
Au
g/t
Au
Tonnes
Ounces
T
Total
Au
g/t
Au
Ounces
5.0
28,600
17,000
5.6
3,100
196,000
5.0
32,000
T
178,000
49,000
9,200
5.8
22,000
5.2
3,700
71,000
5.6
13,000
Pericles –
High Grade
Stirling –
High Grade
Total
227,000
5.2
37,800
39,000
5.4
6,800
267,000
5.2
45,000
Goongarrie Project
Kingwest continued drilling in the September Quarter to identify the source of the substantial gold signature in Lake
Goongarrie. The best primary gold results returned from diamond drilling included 1.09m @ 4.95 g/t Au from 169.86m
(KGD008) and 5.0m @ 4.8 g/t Au from 113.3m (KGD004)11. The drilling campaign at Lake Goongarrie was suspended
due to heavy rainfall. Overall, the deeper lake drilling proved challenging for a variety of reasons making this program more
expensive and slower than initially anticipated. The potential for a discovery remains with results such as KGD004 proving
primary mineralisation in a fertile structural setting.
DIRECTORS’ REPORT (continued)
Brightstar Global Resource (June 2023)
Table 3: Brightstar Global Resource Table as at 30 June 2023.
-9-
Brightstar Resources Limited
Location
Measured
Indicated
Inferred
Total
Au Cut-off
(g/t)
Kt
g/t Au
Koz
Kt
g/t Au
Koz
Kt
g/t Au
Koz
Kt
g/t Au
Koz
Alpha
Beta
Cork Tree Well
Total –
Laverton
Pericles
Lady Shenton
Stirling
Yunndaga
Yunndaga (UG)
Lady Harriet
Bellenger
Warrior
Selkirk
Lady Irene
Total – Menzies
Total – BTR
0.5
0.5
0.5
623
345
-
0
968
1.6
1.7
-
1.6
0.5
0.5
0.5
0.5
2.0
0.5
0.5
0.5
0.5
0.5
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33
19
-
52
-
-
-
-
-
-
-
-
-
-
-
374
576
3,036
2.1
1.6
1.6
25
29
455
961
157
3,501
3,986
1.6
211
4,917
2,310
1.3
96
-
23
53
-
12
9
1
6
-
2,460
1,040
700
2,050
110
320
80
190
140
100
200
7,190
-
460
1,270
-
170
320
30
30
-
4,530
-
1.5
1.3
-
2.1
0.9
1.4
6.3
-
1.4
1.5
3.3
1.7
1.3
1.6
1.2
1.4
1.1
1.4
3.3
1.1
0.9
1.1
1.2
1.7
1.3
48
54
146
1,452
1,882
6,357
248
9,691
4,770
1,040
1,160
3,310
110
490
400
220
170
100
11,770
97
48
26
90
12
12
2
7
5
6
305
553
2.3
1.7
1.4
1.6
1.3
1.4
1.3
1.3
3.3
1.5
0.9
1.1
2.1
1.7
1.3
106
102
303
511
192
48
47
144
12
23
12
8
12
6
505
968
1.7
52
8,516
411
12,107
1.4
21,461
1.5
1,016
Refer Note 1 below. Note some rounding discrepancies may occur
References:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Refer to Brightstar Resources announcement dated 31 January 2023
Refer Brightstar Resources announcement dated 31 July 2023
Refer Brightstar Resources announcement dated 23 June 2023
Refer Brightstar Resources announcement dated 4 October 2022
Refer Brightstar Resources announcement dated 27 October 2022
Refer Brightstar Resources announcement dated 19 July 2023
Refer to Kingwest Resources Announcement dated 5 September 2022)
Refer to Kingwest Resources Announcement dated 23 March 2023
Refer to Kingwest Resources Announcement dated 30 January 2023
10. Refer to Kingwest Resources Announcement dated 13 December 2022
11. Refer to Kingwest Resources Announcement dated 25 October 2022
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited to,
statements concerning Brightstar Resources Limited’s planned exploration program and other statements that are
not historical facts. When used in this document, the words such as "could," "plan," "expect," "intend," "may”,
"potential," "should," and similar expressions are forward-looking statements. Although Brightstar believes that its
expectations reflected in these forward- looking statements are reasonable, such statements involve risks and
uncertainties and no assurance can be given that further exploration will result in the estimation of a Mineral
Resource.
Competent Person Statement
The information in this report that relates to Exploration results at the Menzies Gold Project is based on information
compiled by Ms Elizabeth Laursen B Earth Sci (Hons) GradDip AppFin, who is a Member of the Australasian Institute of
Geoscientists. Ms Laursen has sufficient experience that is relevant to the style of mineralisation, type of deposit under
consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in the 2012
edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and
consents to the inclusion in this report of the matters based on their information in the form and context in which they
appear.
-10-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
The information presented here relating to exploration of the Laverton Gold Project area is based on information
compiled by Mr Ian Pegg B App Sci (Hons), who is a Member of the Australian Institute of Geoscientists (AIG) and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity he has undertaken to qualify as a “Competent Person” as that term is defined in the 2012 Edition of the
“Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)”. Mr
Pegg consents to the inclusion in this announcement of the matters based on his information in the form and context in
which it appears. Mr Pegg is employed by Brightstar Resources Ltd.
Compliance Statement
With reference to previously reported Exploration Results and Mineral Resources, the Company confirms that it is
not aware of any new information or data that materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcement continue to apply and have not
materially changed. The company confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified from the original market announcement.
Corporate
Acquisition of Kingwest Resources Limited
On 23 December 2022, the Company announced a binding Scheme Implementation Deed signed with Kingwest Resources
Limited (“Kingwest”), under which the two companies will merge by way of a court-approved Scheme of Arrangement
between Kingwest and its shareholders (“Scheme”). The Scheme was subsequently approved by shareholders and
implemented on 26 May 2023.
The scheme consideration includes Share Scheme Consideration and Option Scheme Consideration:
(i) All of the ordinary shares at Kingwest are acquired by the Company in exchange for one BTR share for every
0.38 Kingwest shares held; and
(ii) All of the options over the Kingwest shares were cancelled and the option holders received one BTR option for
every 0.38 Kingwest options held.
Upon implementation of the Scheme, Shareholders of the Company and Kingwest held 53% and 47% respectively in the
merged group.
Kingwest owns 100% of the advanced Menzies Gold Project (“MGP”) and the greenfields Goongarrie Gold Project. As of
26 May 2023, the Mineral Resource estimate of the MGP is 11.77 Mt at 1.33 g/t for 505,100 ounces of contained gold.
Completion of Debt Extinguishment
On 18 October 2022, with shareholders’ approval, the Group completed the following transactions with Stone Resources
(HK) Limited (“SRHKL”). At the time of transaction SRHKL was a related party of the Group by virtue of Mr Yongji Duan
being a director of both SRHKL and the Company.
(i) The Group granted a 1.5% NSR royalty over six tenements (i.e. E38/3279, E38/3434, E38/3438, E38/3500,
E38/3504 and P38/4508) to SRHKL, in exchange for extinguishing $5,400,000 debt owed to SRHKL;
(ii) 10,545,818 shares were issued at a deemed issue price of $0.02845 per share to SRHKL, as non-cash payment
of an Option Fee of $300,000 for being granted a Royalty Buy-back Option (“Call Option”). If the Call Option is
exercised, the Group can purchase the 3% NSR which is currently applicable to a substantial portion of the
Group’s tenement holdings in cash and/or BTR shares at the discretion of the Board. The exercise price of this
Call Option is US$25 million, and the expiry is 5 calendar years since settlement date of this Call Option Deed;
and
(iii) 19,090,909 shares were issued to SRHKL at an issue price of $0.033 per share, as non-cash settlement of an
outstanding liability of $630,000 owing to Great Cortex International Limited (“Great Cortex”). All related expenses
and amounts owing, including accrued interest payments, have been deemed to be discharged.
Capital Raising Activities
On 4 November 2022, the Company completed a placement of approximately 44 million fully paid ordinary shares in order
to raise $660,000 (before costs).
On 11 January 2023, the Group completed a Share Placement raising gross proceeds of $1,600,000 (before costs) at an
issue price of $0.016 per share.
The funds raised were applied to advance exploration activities and provide working capital.
-11-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Cash Position
At the end of the financial year the Group had $425,707 (2022: $1,601,324) in cash and cash equivalents. The Group’s
capitalised exploration, evaluation and development expenditure totalled $38,007,360 (2022: $13,270,922).
Subsequent to the end of the financial year, the Group completed a capital raising in August to raise $3.5 million via a
Share Placement of approximately 318 million fully paid ordinary shares at an issue price of $0.011 per share raise gross
proceeds (before costs) of $3,500,000.
Directors
The names of directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience, and special responsibilities
Alexander Rovira
Managing Director (Appointed 12 January 2023)
Mr Rovira holds a Bachelor of Science (Geology) and Bachelor of Commerce (Corporate Finance) from the University of
Western Australia. Before joining the Company Mr Rovira had been working for nine years as an investment banker at a
global financial services company that focused on the metals and mining sector. Mr Rovira holds no directorships in other
listed companies in Australia.
Gregory Bittar
Non-Executive Chairman (Appointed 26 May 2023)
Mr Bittar has extensive experience in public and private markets mergers and acquisitions, capital markets and strategic
advisory assignments across a range of sectors including general industries, metals and mining, mining services and
energy. Mr Bittar has worked for Bankers Trust, Baring Brothers Burrows and with Morgan Stanley in London, Melbourne
and Sydney. Greg holds a Master of Finance from the London Business School, a Bachelor of Economics and a Bachelor
of Laws (Hons) from the University of Sydney.
Mr Bittar is currently a Non-Executive Director of Horizon Oil Limited (appointed March 2017) and previously held the
position of Chairman for ASX listed mining companies Trek Metals Limited (resigned September 2020) and Millennium
Minerals Limited (resigned August 2020).
Jonathan Downes
Non-Executive Director (Appointed 26 May 2023)
Mr Downes has over 25 years’ experience in the minerals industry and has worked in various geological and corporate
capacities. Experienced with nickel, gold and base metals, he has also been intimately involved with the exploration
process, development through to production.
Mr Downes is on the board of several ASX-listed companies; he is currently the Managing director of high grade gold miner
Kaiser Reef Limited (appointed September 2019) and non-executive director of Cazaly Resources Ltd (appointed
November 2021). Mr Downes was previously a Director of Corazon Mining Limited (resigned September 2023) and Galena
Mining Limited (resigned October 2021).
Josh Hunt
Non-Executive Director
Josh Hunt is an experienced capital markets and M&A lawyer and has extensive experience in all aspects of mining and
energy project acquisitions and disposals and general mining legislation compliance throughout Australia. He has advised
on numerous IPOs, fundraisings, and acquisitions by both public and private companies on the ASX and internationally.
Mr Hunt assists the BTR board with corporate governance, company law and capital market management going forward.
Mr Hunt is also a director of ASX listed I Synergy Group Limited (appointed May 2022). Mr Hunt was previously a Director
of Douugh Limited (formerly ZipTel Limited) (resigned September 2020).
-12-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Tony Lau
Non-Executive Director (Appointed 13 February 2023)
Mr Lau has over 20 years of audit, accounting, and corporate finance experience. He worked in PricewaterhouseCoopers
in Hong Kong for 12 years and thereafter held a senior finance executive for a number of PRC Groups in Hong Kong. He
had extensive exposures in working on complex projects including overseas mergers, acquisitions, and IPOs.
Mr Lau holds no directorships in other listed companies in Australia.
William Hobba
Managing Director (Resigned 12 January 2023)
Mr Hobba had been on the Board of the Company since September 2012. Mr Hobba is an experienced minesite technical
advisor who brings 40 years of operational experience in developing mine sites to his role, including over ten years’
experience constructing and operating the Brightstar plant. After retiring from the Board, Mr Hobba has been working for
the Company in the capacity of Technical Services Manager.
Mr Hobba holds no directorships in other listed companies in Australia.
Yongji Duan
Chairman (Non-Executive) (Resigned 13 February 2023)
Yongji Duan is the Chairman of the board of directors of Stone Resources Limited, a previous major shareholder of
Brightstar Resources Limited. He joined Stone Group Corporation in 1985 and has served as Vice President and President
prior to his promotion to the Chairman of its board of directors in 1999. He was appointed President and Chief Executive
Officer of Stone Group Holdings Limited and its subsidiaries in 2002.
As a well-known entrepreneur and business leader in China from 1999 to 2007, he has held the position as Director of
Beijing Centergate Technologies (Holding) Co. Ltd., a company listed on Shenzhen Stock Exchange. From 2003 to 2008,
he also served as Director of SINA Corporation (NASDAQ: SINA).
Mr Duan graduated from Tsinghua University and was a researcher at Beijing University of Aeronautics & Astronautics.
He acted as Vice Director of 621 Laboratory at China National Space Administration from 1982 to 1984.
Mr Duan holds other directorships in other listed companies in Australia.
Directors’ relevant interests in shares, options, or performance rights
The relevant interests of each director, at the date of the directors’ report, in shares or options over any such
instruments are outlined in the following table:
Directors
Alex Rovira
Gregory Bittar
Jonathan Downes
Josh Hunt
Tony Lau
Ordinary Shares
Unlisted Options
Performance Rights
32,447,368
5,879,700
9,013,632
4,607,999
15,172,414
-
80,000,000
6,528,339
2,176,113
-
-
-
-
-
-
Company Secretaries
Benjamin Smith
Joint Company Secretary (Appointed 26 May 2023)
Mr Smith is a Chartered Accountant and has over ten years’ experience in finance, accounting and corporate advisory. His
experience includes three years at BHP’s Nickel Wes, and five years auditing ASX listed companies prior to that. More
recently he is serving as Company Secretary for ASX listed company Rubix Resources Limited and Estrella Resources
Limited.
-13-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Luke Wang
Joint Company Secretary
Mr Wang is a Certified Practising Accountant. He holds a Master of Professional Accounting and Postgraduate Diploma
in Taxation from the Curtin University. Mr Wang joined the Company in 2012. In addition to his role as Company
Secretary, he has been focusing on the financial and administration work of the Company as Financial Controller.
Principal Activities
The principal activities of the Group during the financial year were mineral exploration.
Significant changes in state of affairs
Other than those disclosed in the director’s report, there were no significant changes in the state of affairs of the Group
during the financial year.
Results
The consolidated profit after income tax attributable to the members of the Group was $1,944,366 (2022: $3,950,250 loss).
Dividends
No dividends have been paid or declared since the start of the financial year and the directors do not recommend the
payment of a dividend in respect of the financial year.
Significant events after balance date
On 4 August 2023 the Company completed a Share Placement raising gross proceeds of $3.5 million (before costs) at an
issue price of $0.011 per share. Approximately 304.5 million fully paid ordinary shares were issued to sophisticated
investors. The remaining approximately 13.6 million shares will be issued to the Directors of the Company upon receipt of
shareholder approval.
Mining at the Selkirk Deposit under the joint venture with BML Ventures Pty Ltd commenced 21 August 2023. This project
is budgeted on a gold price of $2,850 per ounce. 50% project cashflow is expected to be generated and distributed to the
Company in the first quarter of 2024 calendar year.
Results of the Scoping Study from the Menzies & Laverton Gold Projects located in WA’s Goldfields region were
announced on 6 September 2023. The Scoping Study illustrates that the development of the Menzies and Laverton Gold
Projects is a commercially viable stand-alone mining operation and accordingly the Board of the Company has approved
progression to a Preliminary Feasibility Study.
There were no other significant events occurring after balance sheet date requiring disclosure other than already disclosed.
Likely developments
The Group will progress the Menzies and Laverton Gold Projects to a Preliminary Feasibility Study, in parallel with
converting inferred Mineral Resources to Indicated Mineral Resources, ongoing extensional exploration and resource
growth.
Environmental legislation
The Group’s operations are subject to significant environmental regulation under the law of the Commonwealth and State.
The Directors of the Group monitor compliance with environmental regulations. The Directors are not aware of any
significant breaches during the period covered by this Report.
Material Business Risks
The Board and Management have identified the following specific risks relevant to the Company’s current/ongoing business
and operations:
-14-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Fluctuations in commodity prices and outlook
The Group’s is by its nature exposed to fluctuations in the gold price and the Australian dollar exchange rate. Volatility in
the gold price and Australian dollar effects the perceived value of the Group and its business performance. Declining gold
prices can also impact operations by requiring a reassessment of the feasibility of a particular exploration or development
project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment
could cause delays and/or may interrupt operations, which may have a material adverse effect on our results of operations
and financial condition.
Risk of exploration failure
Exploration activities are inherently risky, and the Board is unable to provide certainty that any or all of these objectives,
as outlined as business strategies above, will be able to be achieved. In the opinion of the Directors, any further disclosure
of information regarding likely developments in the operations of the Group and the expected results of these operations
in subsequent financial years may prejudice the interests of the Company and accordingly, further information has not
been disclosed.
Additional requirement for capital
The Company’s current capital is sufficient, at the issue date of this report, to meet its current planned exploration activities.
Activities beyond the scope of current plans including funding corporate activities will require additional funding to be
obtained. Funding via additional equity will dilute existing shareholdings and debt financing if viable, would likely be subject
to covenants and restrictions. There is a risk that the Company may need to reduce the scope of its future exploration
programmes to ensure sufficient capital is maintained. There is no guarantee that suitable, additional funding will be able
to be secured by the Company either via equity or debt.
Mineral resources and estimates and exploration
The Group’s mineral resources and estimates are estimates, based on interpretations of geological data obtained from
drillholes and other sampling techniques. Actual mineralisation or geological conditions may be different from those
predicted. Market price fluctuations of gold as well as increased production and capital costs may render the Group’s
resources unprofitable to develop at a particular site or sites for periods of time or may render estimates containing relatively
lower grade mineralisation uneconomic. Estimated resources may have to be re-estimated based on actual production
experience. Any of these factors may require the Group to reduce its estimates, which could have a negative impact on
the Group’s financial results.
The Group’s exploration projects involve many risks and are frequently unsuccessful. Once a site with mineralisation is
discovered (or acquired), it may take several years from the initial phases of drilling until production is possible. There is
no assurance that current or future exploration programs will be successful. There is a risk that depletion of resources will
not be offset by discoveries or acquisitions.
Mining, exploration and insurance
The mining industry is subject to significant risks and hazards, including environmental hazards, industrial accidents,
unusual or unexpected geological conditions, unavailability of materials and equipment, pit wall failures, rock bursts,
seismic events, cave-ins and weather conditions (including flooding and bush fires), most of which are beyond the Group’s
control. These risks and hazards could result in significant costs or delays that could have a material adverse effect on the
Group’s financial performance, liquidity and results of operation. There is a risk that unforeseen geological and geotechnical
difficulties may be encountered when developing and mining, such as unusual or unexpected geological conditions,
underground access, ambient rock temperature, rock bursts, seismicity and cave ins.
Unforeseen geological and geotechnical difficulties could impact operations and/or require additional operating or capital
expenditure to rectify problems and thereby have an adverse effect on the Company's financial and operational
performance.
The Group maintains insurance to cover the most common of these risks and hazards. The insurance is maintained in
amounts that are considered reasonable depending on the circumstances surrounding each identified risk. However,
property, liability and other insurance may not provide sufficient coverage for losses related to these or other risks or
hazards.
Environmental, health, safety and permitting
The Group’s activities are subject to laws and regulations governing the protection and management of the environment,
water management, waste disposal, worker health and safety, mine development and rehabilitation and the protection of
endangered and other special status species. The Group’s ability to obtain permits and approvals and to successfully
operate may be adversely impacted by real or perceived detrimental events associated with the Group’s activities or those
of other mining companies affecting the environment, human health and safety of the surrounding communities. Delays in
obtaining or failure to obtain government permits and approvals may adversely affect the Group’s operations, including its
ability to continue operations.
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
-15-
With the Group’s tenure located within Western Australia, the Company is subject to state and federal laws and regulations
concerning the environment in Western Australia. Mechanised exploration will impact the local environment along with any
advanced development and production activities. In undertaking exploration activities, the Company intends to comply with
all environmental laws. Inherent risks when completing exploration activities include, but are not limited to, land disturbance
and the disposal of waste products. An incident involving incorrect disposal of waste products could result in delays to
exploration, additional costs to remediate the location and any legislative penalties. The Company has procedures in place
to minimise the occurrence of environmental impacts and any subsequent penalties; however, the nature of exploration
and development will always involve environmental risks.
The Group has implemented health, safety and community initiatives at its sites to manage the health and safety of its
employees, contractors and members of the community. While these control measures are in place there is no guarantee
that these will eliminate the occurrence of incidents which may result in personal injury or damage to property. In certain
instances such occurrences could give rise to regulatory fines and/or civil liability.
Heritage
The Company is subject to state and federal laws and regulations concerning Native Title and Heritage rights and interests.
The Company is required to ensure that tenure has been adequately surveyed and considered before commencing any
activity that would disturb the natural environment and its surroundings. The Company complies with required legislation
regarding Native Title and Heritage requirements and, where appropriate, engages a third party to ensure that all
requirements are met. While all care is taken to ensure rights and interests are maintained, there is a level of risk inherent
in exploration activities that is unable to be fully mitigated.
Shares under option
Unissued ordinary shares of Group under option as at 30 June 2023 are as follows:
Date options issued
Number of shares under
option
Exercise price of option
Expiry date of options
31 December 2020
31 December 2020
31 December 2020
12 February 2021
22 June 2021
1 December 2021
1 December 2021
30 November 2022
26 May 2023
26 May 2023
26 May 2023
26 May 2023
26 May 2023
26 May 2023
26 May 2023
26 May 2023
26 May 2023
26 May 2023
4,000,000
4,000,000
4,000,000
1,000,000
5,000,000
2,200,000
20,000,000
10,000,000
2,960,526
59,243,413
50,991,656
16,447,368
21,052,631
7,815,789
4,473,685
3,289,474
3,289,474
3,947,368
$0.06
$0.08
$0.10
$0.10
$0.045
$0.05
$0.05
Nil
$0.068
$0.057
$0.038
$0.065
$0.076
$0.106
$0.108
$0.095
$0.023
$0.038
31 December 2023
31 December 2023
31 December 2023
12 February 2024
22 June 2024
1 December 2024
31 December 2024
30 November 2026
15 September 2023
30 December 2023
29 February 2024
15 September 2024
21 October 2024
7 October 2024
15 February 2025
28 April 2025
16 January 2026
16 January 2026
No option holder has any right under the options to participate in any other share issue of the Company. No shares were
issued during or after the reporting period upon the exercise of options, as at the date of this report.
For details of options issued to Directors and Key Management Personnel as remuneration, refer to the remuneration
report.
During the financial year 15,000,000 options were cancelled, forfeited or lapsed (2022: nil).
DIRECTORS’ REPORT (continued)
-16-
Meetings of Directors
The number of meetings of directors held during the year and the number of meetings attended by each director was as
follows:
Brightstar Resources Limited
Alex Rovira
Gregory Bittar
Jonathan Downes
Josh Hunt
Tony Lau
William Hobba
Yongji Duan
Meetings
attended
4
2
2
6
2
2
4
Eligible to
attend
4
2
2
6
2
2
4
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility
on behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237
of the Corporations Act 2001.
Auditor Independence
Section 307C of the Corporations Act 2001 requires our auditors to provide the Directors of the Company with an
Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on
page 24 and forms part of this directors’ report for the year ended 30 June 2023.
Non-Audit Services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 24 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
Rounding of amounts
In accordance with ASIC Corporations (Rounding in Financial/Director’s Reports) Instrument 2016/191, the amounts in
the Directors’ report and in the financial report have been rounded to the nearest $1 (where rounding is applicable).
Remuneration report (audited)
The Directors present the Group’s 2023 remuneration report which details the remuneration information for Brightstar
Resources Limited’s executive directors, non-executive directors and other key management personnel.
Details of key management personnel
Directors
(i)
Alex Rovira
Gregory Bittar
Jonathan Downes
Josh Hunt
Tony Lau
William Hobba
Yongji Duan
Managing Director (appointed 12 January 2023)
Non-Executive Chairman (appointed 26 May 2023)
Non-Executive Director (appointed 26 May 2023)
Non-Executive Director
Non-Executive Director (appointed 13 February 2023)
Managing Director (resigned 12 January 2023)
Non-Executive Chairman (resigned 13 February 2023)
Other Key Officers
(ii)
Luke Wang
Joint Company Secretary
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
-17-
Remuneration philosophy
The philosophy of the Group in determining remuneration levels is to set competitive remuneration packages to attract and
retain high calibre employees.
Remuneration committee
There is no separate Remuneration Committee. The Board of Directors of the Company is responsible for determining
and reviewing compensation arrangements for the directors and the executive team.
The Board assesses the appropriateness of the nature and amount of remuneration of directors and executives on a
periodic basis by reference to relevant employment market conditions.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive director and executive remuneration
is separate and distinct.
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time
to time by a general meeting. The latest determination was at the General Meeting held on 29 March 2023 when
shareholders approved an aggregate remuneration of $400,000 per year.
The Board considers the fees paid to non-executive directors of comparable companies when undertaking the annual
review process.
The board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The
board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. In the current year, no advice
was sought. Fees for non-executive directors are not linked to the performance of the Group. However, to align directors’
interests with shareholder interests, the directors are encouraged to hold shares in the Group and are able to participate
in the option plan.
Senior manager and executive director remuneration
Remuneration is reviewed annually by the Board. The process consists of a review of relevant comparative remuneration
in the market and internally and, where appropriate, external advice on policies and practices. The Board has access to
external, independent advice where necessary. In the current year, no advice was obtained.
Senior managers are given the opportunity to receive their remuneration in a variety of forms including cash, shares issued
in lieu of salary, and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of
payment chosen will be optimal for the recipient without creating undue cost for the Group.
Voting and comments made at the Company’s 2022 Annual General Meeting (“AGM”)
As the remuneration report for the 2022 financial year received a “no’ vote of more than 25%, a “first strike” was recorded
for the purposes of the Corporations Act 2001 (Cth). The Board acknowledges the ‘strike’ received on the Remuneration
Report, values the feedback of its shareholders and have been continuing to engage with shareholders on its remuneration
approach.
The Board has taken the following actions since the First Strike on the 2022 Remuneration Report:
- Four new Board members who weren’t on the Board at the time of the 2022 AGM
- No pay rises occurred to the Board since the 2022 AGM
- No options or incentives have been issued to any Board member without shareholder approval
Managing Director Remuneration
Mr Rovira was appointed Managing Director of the Company on 12 January 2023. His employment is in accordance with
an Executive Services Agreement dated 22 December 2022 on an ongoing basis subject to termination and notice.
Mr Rovira’s current remuneration is $250,000 per annum (plus superannuation). In addition, Mr Rovira may be entitled to
earn a short-term incentive determined by the Board, and incentive securities subject to compliance with the Listing Rules
and the Corporations Act and obtaining shareholder approval. During the year, 80,000,000 Performance Rights are issued
to Mr Rovira upon shareholder approval obtained at the general meeting held on 29 March 2023.
The Company or Mr Rovira may terminate the agreement by providing 6 months’ notice in writing.
-18-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Non-Executive Director Remuneration
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the Company in the form of
a letter of appointment. Compensation details of current Non-Executive Directors are shown as follows:
Name
Gregory Bittar
Jonathan Downes
Josh Hunt
Tony Lau
Fee / Base Salary (excl. Superannuation)
$75,000
$48,000
$48,000
$48,000
Key Performance Indicators of the Group over the last five years
Information about the Group’s earnings and changes in shareholder wealth for the financial year and previous
4 financial years is outlined in the following table:
2023
2022
2021
2020
2019
Net profit / (loss) after tax
1,944,366
(3,950,250)
60,551,860
(6,617,894)
(4,140,859)
Basic (loss) / profit (cents per share)
Dividends paid (cents per share)
Share price at end of year
0.24
-
0.011
(0.73)
10.25
(0.80)
(0.51)
-
-
-
-
0.018
0.031
0.004
0.002
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Table 1: Key Management Personnel Remuneration for the years ended 30 June 2023 and 30 June 2022
-19-
Brightstar Resources Limited
Short-term Employee Benefits
Short-term Share-based Payments
Other Long-
Term
Benefits
Post-
Employment
Benefits
Salary &
Fees
$
Deferred
Remuneration
Payment
$
Other
$
Shares
$
Options
$
Performance
Rights
$
Unvested
Cash Bonus
$
Superannuation
$
Total
$
Directors
Alex Rovira (i)
Gregory Bittar (ii)
2023
2023
Jonathan Downes (ii)
2023
117,608
6,250
4,000
Josh Hunt
Tony Lau (iii)
2023
2023
72,000 (viii)
23,143 (vi)
-
-
-
-
-
-
-
-
-
-
William Hobba (iv) (ix) 2023
120,000 (vii)
- 20,371 (vii)
Yongji Duan (v)
2023
47,368
Other Key Management Personnel
Luke Wang
2023
TOTAL
100,000
490,369
-
-
-
-
2,200
22,571
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81,375
-
-
120,000
-
-
-
-
-
-
-
-
-
-
-
-
12,349
249,957
656
420
-
-
6,906
4,420
72,000
23,143
848,644
12,600 (vii)
1,082,990
-
-
-
47,368
10,710
36,735
112,910
1,599,693
81,375
120,000
848,644
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
Appointed 12 January 2023.
Appointed 26 May 2023.
Appointed 13 February 2023.
Resigned 12 January 2023.
Resigned 13 February 2023.
$4,857 is related to the period before Mr Lau became a director of the Company.
$56,452 salary, $7,020 expensed other long-term benefits, and $5,927 superannuation are related to the period after Mr Hobba resigned as a director of the Company.
Mr Hunt’s remuneration is changed to $48,000 per annum effective from 1 July 2023.
Relates to a cash bonus being granted to Mr Hobba which will be progressively paid upon pre-established milestones in association with mining and production activities being
achieved.
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Table 2: Key Management Personnel Remuneration (directors) for the years ended 30 June 2023 and 30 June 2022
-20-
Brightstar Resources Limited
Short-term Employee Benefits
Short-term Share-based Payments
Other Long-
Term
Benefits
Post-
Employment
Benefits
Salary &
Fees
$
Deferred
Remuneration
Payment (i)
$
Other
$
Shares
$
Options
$
Performance
Rights
$
Unvested
Cash Bonus
$
Superannuation
$
Total
$
Directors
William Hobba
Yongji Duan
Josh Hunt
2022
2022
2022
120,000
38,262
48,000
Other Key Management Personnel
Tony Lau (iii)
2022
4,583
Luke Wang
2022
TOTAL
100,000
310,845
66,000
73,829 (ii)
-
-
-
-
-
150,000
(iv)
200
150,000 (iv)
-
104,256
224,029
150,000
38,256
-
-
-
-
-
-
-
39,830
39,830
-
-
-
-
-
-
-
-
-
-
-
-
12,000
271,829
-
-
-
10,000
22,000
76,518
48,000
304,583
150,030
850,960
(i)
(ii)
(iii)
(iv)
Under mutual agreement, certain Directors agreed to defer the payment of a portion of their remuneration, which will be settled in either cash or equity at the Company’s discretion.
Reimbursement of expenses as per the rates set out in Mr Hobba’s Executive Services Agreement as Managing Director.
Mr Lau resigned as secretary of the Company on 19 July 2021.
On 1 December 2021, the Group issued 5,172,414 shares to Mr Tony Lau for a total value of $150,000, as part settlement sum, with a further $150,000 paid in cash to Mr Tony Lau.
This settlement sum was for services performed by Mr Lau during his tenure as company secretary. The issue of shares was approved by shareholders at the Group’s 2021 Annual
General Meeting.
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
-21-
Table 3: Key Management Personnel Shareholding for the years ended 30 June 2023 and 30 June 2022
Brightstar Resources Limited
Balance at
beginning of
period
Granted as
remuneration
Other changes
during the year
Balance at end
of period
Directors
Alex Rovira (i) (vi)
Gregory Bittar (ii) (vi)
Jonathan Downes (ii) (vi)
Josh Hunt (vi)
Tony Lau (iii)
William Hobba (iv)
Yongji Duan (v)
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Other Key Management Personnel
Luke Wang
TOTAL
2023
2022
2023
2022
-
-
-
-
-
-
3,357,999
3,357,999
-
-
-
-
-
-
-
-
32,447,368
32,447,368
-
-
5,879,700
5,879,700
-
-
9,013,632
9,013,632
-
-
1,250,000
-
4,607,999
3,357,999
-
-
15,172,414
15,172,414
10,000,000
5,172,414
(15,172,414)
68,727,775
68,727,775
31,449,497
31,449,497
-
-
103,535,271
-
-
-
-
-
-
-
-
-
(68,727,775)
-
68,727,775
(31,449,497)
-
-
31,449,497
-
-
-
-
(37,094,322)
67,121,112
113,535,271
5,172,414
(15,172,414)
103,535,271
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Appointed 12 January 2023
Appointed 26 May 2023
Appointed 13 February 2023
Resigned 12 January 2023
Resigned 13 February 2023
Other changes include on-market trading and/ or shares converted to Brightstar from Kingwest as a result of the
acquisition (1 Brightstar share received for every 0.38 Kingwest shares held).
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Table 4: Key Management Personnel Option holding for the years ended 30 June 2023 and 30 June 2022
-22-
Brightstar Resources Limited
Balance at
beginning of
period
Granted as
remuneration
Other changes
during the year
Balance at end
of period
Directors
Alex Rovira (i)
Gregory Bittar (ii) (vii)
Jonathan Downes (ii) (vii)
Josh Hunt
Tony Lau (iii)
William Hobba (iv) (vi)
Yongji Duan (v)
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Other Key Management Personnel
Luke Wang
TOTAL
2023
2022
2023
2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,528,339
6,528,339
-
-
2,176,113
2,176,113
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
10,000,000
(10,000,000)
-
1,000,000
1,000,000
10,000,000
(1,295,547)
9,704,453
-
1,000,000
-
1,000,000
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Appointed 12 January 2023
Appointed 26 May 2023
Appointed 13 February 2023
Resigned 12 January 2023
Resigned 13 February 2023
Refer to note 19 of the financial statements for terms and conditions of those issued and details of the fair value
of zero exercise price options issued to Mr Hobba.
Other changes include on-market trading and/ or options converted to Brightstar from Kingwest as a result of
the acquisition (1 Brightstar share received for every 0.38 Kingwest options held).
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
-23-
Table 5: Key Management Personnel Performance Rights holding for the years ended 30 June 2023 and 30 June 2022
Brightstar Resources Limited
Balance at
beginning of
period
Granted as
remuneration
Other changes
during the year
Balance at end
of period
Directors
Alex Rovira (i) (vi)
Gregory Bittar (ii)
Jonathan Downes (ii)
Josh Hunt
Tony Lau (iii)
William Hobba (iv)
Yongji Duan (v)
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Other Key Management Personnel
Luke Wang
TOTAL
2023
2022
2023
2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,000,000
-
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Appointed 12 January 2023
Appointed 26 May 2023
Appointed 13 February 2023
Resigned 12 January 2023
Resigned 13 February 2023
Refer to note 19 of the financial statements for terms and conditions of those issued and details of the fair value
of the performance rights issued to Mr Rovira.
-24-
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Transactions with related parties
Purchases from and sales to related parties are made on terms equivalent to those that prevail in arm’s length transactions.
On 18 October 2022, with shareholders approval, the Group completed the following transactions with SRHKL (at the time
of transaction SRHKL was a related party of the Group by virtual of Mr Yongji Duan being a director of both SRHKL and
the Group) :
(i) A 1.5% NSR royalty over six tenements (i.e. E38/3279, E38/3434, E38/3438, E38/3500, E38/3504 and P38/4508)
was granted to SRHKL, in exchange for extinguishing $5,400,000 debt owed to SRHKL;
(ii) 10,545,818 shares were issued at a deemed issue price of $0.02845 per share to SRHKL, as non-cash payment
of an Option Fee for being granted a Royalty Buy-back Option (Call Option). If the Call Option is exercised, the
Group can purchase the 3% NSR which is currently applicable to a substantial portion of the Group’s tenement
holdings in cash and/or BTR shares at the discretion of the Board. The exercise price of this Call Option is US$25
million, and the expiry is 5 calendar years since settlement date of this Call Option Deed; and
(iii) 19,090,909 fully paid ordinary shares in the Company were issued to SRHKL at an issue price of $0.033 per
share, as non-cash settlement of the Cortex Loan. The original loan agreement which was executed by the
Company and Cortex in September 2012 was subsequently announced terminated, and all liabilities under that
loan agreement including interest accrued are deemed to have been discharged.
Details of other related parties’ transactions are shown as follows:
2023
$
2022
$
Hunt DRG – related party to Josh Hunt
Provision of legal and compliance services which fell outside of the
scope of Mr Hunt’s director duties
24,500
33,500
Other than as outlined above, the Group did not enter into any further related party transactions with the Director, key
management personnel or their related entities.
END OF AUDITED REMUNERATION REPORT
Signed in accordance with a resolution of the directors made pursuant to s.298 (2) of the Corporations Act 2001.
Alex Rovira
Managing Director
29 September 2023
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF BRIGHTSTAR RESOURCES LIMITED
AND ITS CONTROLLED ENTITIES
In relation to the independent audit for the year ended 30 June 2023, to the best of my knowledge and
belief there have been:
(i)
(ii)
No contraventions of the auditor independence requirements of the Corporations Act
2001; and
No contraventions of APES 110 Code of Ethics for Professional Accountants (including
Independence Standards).
This declaration is in respect of Brightstar Resources Limited and the entities it controlled during the period.
PITCHER PARTNERS BA&A PTY LTD
PAUL MULLIGAN
Executive Director
Perth, 29 September 2023
25
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 June 2023
-26-
Brightstar Resources Limited
Interest
Other income
Remeasurement of Rehabilitation Provision
Mine site expenses
Exploration expenditure
Depreciation and amortisation expense
Impairment expenses
Finance costs
Administration expenses
Consulting expenses
Director fees
Employee benefits expense
Other expenses
Profit / (loss) before income tax
Income tax
Notes
2023
$
2022
$
2(a)
15
2(b)
2(c)
2(d)
9,217
385
5,062,823
150,188
450,832
-
(366,466)
(336,813)
(125,512)
(673,934)
(43,383)
(394,942)
(700,755)
(47,828)
(363,340)
(957,128)
(310,700)
(186,516)
(39,000)
(380,338)
(292,878)
(255,707)
2(g)
(1,132,112)
(651,924)
(204,360)
(215,693)
1,944,366
(3,950,250)
3
-
-
Net profit / (loss) for the year attributable to members of
the parent
Other comprehensive income for the year, net of tax
Total comprehensive profit / (loss) for the year
1,944,366
(3,950,250)
-
-
1,944,366
(3,950,250)
Total comprehensive income / (loss) for the year
attributable to members of the parent
1,944,366
(3,950,250)
Basic (loss)/earnings per share per share (cents per share)
Diluted (loss)/earnings per share (cents per share)
5
5
0.24
0.22
(0.73)
(0.73)
The accompanying notes form part of these financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 June 2023
-27-
Brightstar Resources Limited
Notes
2023
$
2022
$
Current Assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Prepayments
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right-of-use asset
6
7
8
9
10
425,707
134,447
50,943
114,172
725,269
297,376
302,083
Deferred exploration and evaluation expenditure
11,12
38,007,360
Total Non-Current Assets
38,606,816
1,601,324
403
25,000
26,142
1,652,869
86,183
14,908
13,270,922
13,372,013
Total Assets
Current Liabilities
Trade and other payables
Lease liabilities
Provisions
Total Current Liabilities
Non-Current Liabilities
Other payables and accruals
Lease liabilities
Borrowings
Provisions
Other financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Reserve
Total Equity
The accompanying notes form part of these financial statements
39,332,085
15,024,882
1,614,687
2,040,334
45,941
196,593
14,907
145,225
1,857,221
2,200,466
848,644
275,775
-
2,926,920
-
4,051,339
-
-
628,736
3,111,668
4,434,667
8,175,071
5,908,560
10,375,537
33,423,525
4,649,345
68,981,082
43,254,388
(42,926,520)
(44,870,886)
7,368,963
33,423,525
6,265,842
4,649,345
13
10
15
13
10
14
15
16
17
18
-28-
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 June 2023
Brightstar Resources Limited
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Interest on lease liabilities
Notes
2023
$
2022
$
(804,705)
(1,391,789)
8,900
(2,432)
523
(392)
Net cash (used in) operating activities
6(ii)
(798,237)
(1,391,658)
Cash flows from investing activities
Proceeds from sale of non-current assets
Proceeds from sale of assets
Payments for property, plant and equipment
764
-
(58,900)
-
10,000
(27,559)
Payments for exploration and evaluation expenditure
(2,553,794)
(2,453,136)
Payments for acquisition of exploration assets
Net cash inflow from acquisition of Kingwest Resources Ltd
12
Transaction costs related to acquisition of entity
Net cash (used in) investing activities
Cash flows from financing activities
Repayment of lease liabilities
Payments for share buy-back
Proceeds from capital raising
Transaction costs on issue of equity securities
Payment of deposit and bank guarantee
Net cash provided by financing activities
Net (decrease) / increase in cash held
Cash and cash equivalents at beginning of period
(2,000)
699,482
(544,037)
(60,000)
-
-
(2,458,485)
(2,530,695)
(18,918)
(17,838)
-
-
2,260,000
4,847,318
(126,172)
(290,839)
(33,805)
-
2,081,105
4,538,641
(1,175,004)
1,601,324
616,288
985,035
Cash and cash equivalents at end of period
6(i)
425,707
1,601,323
The accompanying notes form part of these financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 June 2023
-29-
Brightstar Resources Limited
Balance as at 1 July 2021
Profit for the year
Other comprehensive loss
Total comprehensive loss for the year
Shares issued during the year
Transaction costs on issue of shares
Share based payment reserve
Balance at 30 June 2022
Balance as at 1 July 2022
Loss for the year
Other comprehensive loss
Total comprehensive loss for the year
Shares issued during the year
Transaction costs on issue of shares
Share based payment reserve
Balance at 30 June 2023
The accompanying notes form part of these financial statements
Issued Capital
Accumulated
Losses
Reserve
Note
$
$
$
Total
$
37,857,909
(40,920,635)
5,396,622
2,333,896
-
(3,950,250)
-
-
-
(3,950,250)
17
5,687,318
(290,839)
-
-
-
-
-
-
-
-
-
869,220
43,254,388
(44,870,886)
6,265,842
43,254,388
(44,870,886)
6,265,842
-
1,944,366
-
-
-
1,944,366
17
18, 19
25,852,866
(126,172)
-
-
-
-
68,981,082
(42,926,520)
-
-
-
-
-
1,103,121
7,368,963
(3,950,250)
-
(3,950,250)
5,687,318
(290,839)
869,220
4,649,344
4,649,344
1,944,366
-
1,944,366
25,852,866
(126,172)
1,103,121
33,423,525
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
-30-
Brightstar Resources Limited
Brightstar Resources Limited is a company limited by shares, incorporated and domiciled in Australia. The Company is a
for-profit entity. Its registered office and principal place of business is Level 2, 26 Rowland Street, Subiaco, WA 6008.
(a) Basis of preparation of the financial report
The financial report covers Brightstar Resources Limited (“the Company”) and its controlled entities as a group
(together referred to as the “Group”).
This financial report is a general purpose financial report that has been prepared in accordance with the Corporations
Act 2001 and Australian Accounting Standards, Interpretations and other applicable authoritative pronouncements of
the Australian Accounting Standards Board (AASB).
The financial report was approved by the directors on 29 September 2023.
Compliance with IFRS
The financial report also complies with the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB).
Historical cost convention
The financial report has been prepared under the historical cost convention, as modified by revaluations to fair value
for certain classes of assets and liabilities as described in the accounting policies.
Fair value measurement
For financial reporting purposes, ‘fair value’ is the price that would be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between market participants (under current market conditions) at the
measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique.
When estimating the fair value of an asset or liability, the entity uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs. Inputs to valuation techniques used to measure
fair value are categorised into three levels according to the extent to which the inputs are observable:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability.
(b) Going Concern
The financial report has been prepared on a going concern basis, which assumes that the Group will continue in
operation for the foreseeable future.
The Group has recorded a net profit of $1,944,366 (2022: loss of $3,950,250), reported net cash used in operating
activities $798,237 (2022: outflows of 1,391,658) and as of 30 June 2023 cash and cash equivalents of $425,707
(2022: $1,601,324).
The directors have prepared a cash flow forecast for the period ending 30 September 2024. It is recognised that
additional funding is required either through the issue of further shares, or convertible notes, or the sale of assets, or
a combination of these activities for the Group to continue to actively explore and develop its mineral properties, until
recommencement of mining and milling operations.
The directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion
that the use of the going concern basis of accounting is appropriate. The following factors have been taken into
consideration by the directors:
• Subsequent to the year end, the Company has successfully completed a Share Placement raising gross proceeds
of $3.5 million (before costs) at an issue price of $0.011 per share (refer to note 23).
•
$150,000 (incorporated as part of the aforementioned $3.5 million Share Placement) is expected to be raised via
a Director Placement, which is subject to shareholders approval at the general meeting on 9 October 2023.
• Mining at the Selkirk Deposit under the joint venture with BML Ventures Pty Ltd commenced 21 August 2023.
This project is budged on a gold price of $2,850 per ounce. Under the joint venture arrangement, the Group
receives 50% of the Selkirk Project’s net cashflow which is expected to be generated and distributed to the
Company in the first quarter of 2024 calendar year.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-31-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Going Concern (continued)
However, the Group acknowledge that the status of going concern relies on the development of the Company’s
projects and subsequent capital raising to support the development. Should the Group be unable to raise further debt
or capital, there exists a material uncertainty that the Group may in the future not be able to continue as a going
concern. The financial report does not include adjustments relating to the recoverability and classification of recorded
asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not
continue as a going concern.
(c) New and revised accounting standards effective for the current reporting period
The Group has adopted all of the new and amended Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant to the Group and effective for the current reporting period.
The Group has considered the implications of new and amended Accounting Standards and has determined that
their application to the financial statements is either not relevant or not material.
(d) Accounting standards issued but not yet effective
The Group has considered all Standards and Interpretations issued but not yet effective for the current reporting period
and has determined that their implication to the financial statements is either not relevant or not material.
(e) Principles of consolidation
The consolidated financial statements are those of the consolidated entity (“the Group”), comprising the financial
statements of the parent entity and all of the entities the parent controls. The Group controls an entity where it has the
power, for which the parent has exposure or rights to variable returns from its involvement with the entity, and for
which the parent has the ability to use its power over the entity to affect the amount of its returns.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies which may
exist.
All inter group balances and transactions, including any unrealised profits or losses have been eliminated on
consolidation. Subsidiaries are consolidated from the date on which control is obtained by the Group and are de
recognised from the date that control ceases.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as non-controlling
interests. Non-controlling interests are initially recognised either at fair value or at the non-controlling interests’
proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition by
acquisition basis. Non-controlling interests in the results of subsidiaries are shown separately in the statement of profit
or loss and other comprehensive income and the statement of financial position respectively.
(f) Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations
of future events, management believes to be reasonable under the circumstances. The resulting accounting
judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to
the respective notes) within the next financial year are discussed below.
Asset Acquisition
AASB 3 Business Combination provides guidance to determine whether a business combination or an asset
acquisition has occurred. Critical judgment is required to determine the classification of the transaction. On 26 May
2023 the Group completed the acquisition of 100% of Kingwest Resources Ltd (“Kingwest”). Through a thorough
analysis of the specific characteristics of the transaction and by applying the relevant implications of AASB 3, it was
determined that the transaction does not meet the definition of a business. Consequently, the transaction has been
accounted for as an asset acquisition.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-32-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f) Critical accounting judgements, estimates and assumptions (continued)
Exploration and evaluation costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These
costs are carried forward in respect of an area that has not at reporting date reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active Group
operations in, or relating to, the area of interest are continuing.
Impairment of exploration and evaluation assets
The ultimate recoupment of the value of exploration and evaluation assets is dependent on the successful
development and commercial exploitation, or alternatively, sale, of the exploration and evaluation assets.
On a regular basis, management consider whether there are indicators as to whether the asset carrying values
exceed their recoverable amounts. This consideration includes assessment of the following:
(a) expiration of the period for which the entity has the right to explore in the specific area of interest with no plans
for renewal;
(b) substantive expenditure on further exploration for and evaluation in the specific area is neither budgeted nor
planned;
(c) exploration for and evaluation activities have not led to the discovery of commercially viable quantities of mineral
resources and the entity has decided to discontinue such activities in the specific area;
(d) sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development
or by sale.
Where an impairment indicator is identified, the determination of the recoverable amount requires the use of estimates
and judgement in determining the inputs and assumptions used in determining the recoverable amounts.
The key areas of judgement and estimate include:
- Recent exploration and evaluation results and resource estimates;
-
-
Environmental issues that may impact on the underlying tenements;
Fundamental economic factors that have an impact on the operations and carrying values of assets and
liabilities.
Recoverability of Mine Property and Plant
Certain assumptions are required to be made in order to assess the recoverability of Mine Property and Plant. The
recoverable amount of Mine Property and Plant is the higher of fair value less costs of disposal and value in use. Mine
Property and Plant values are tested on a “Fair value less costs of disposal” as a basis to determine any impairment.
In estimating the fair value of Mine Property and Plant, the Group engages third party qualified valuers to perform the
valuation of Mine Property and Plant.
The key areas of judgement and estimate include:
− Auction Value of Mine Property and Plant (last report issued for valuation performed in July 2017); and
− Fundamental economic factors that have an impact on the operations and carrying values of assets and
liabilities.
Provision for restoration and rehabilitation obligations
The estimated costs of future site rehabilitation and restoration, including heritage preservation where required,
associated with previous mining and/or exploration activity are provided for as and when an obligation arises and are
included in the costs of the related area of interest. These costs include the dismantling and removal of any plant,
equipment and building structures and rehabilitation, where such work is deemed appropriate by the relevant
government authorities and the cost of making safe any remaining aspects of the previous mining operation. The
costs are based on estimates of future costs, current legal requirements and existing technology.
The provision is based on the best available information of costs expected to be incurred at the expiry of the respective
license agreements. Such costs have been provided for at the present value of future expected expenditure
discounted using a rate adjusted for risks specific to the liability. On an ongoing basis the closure liability is
remeasured at each reporting period in line with the changes in time value of money (recognised as a finance cost in
profit or loss and an increase in provision), and changes in estimates of future costs or methods of rehabilitation.
Changes in the closure liability are recognised prospectively.
Certain assumptions are required to be made in determining the amount expected to be incurred to settle its
obligations in relation to restoration and rehabilitation of the mine site. Key assumptions include the amount and
timing of future cash flow estimates.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-33-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f) Critical accounting judgements, estimates and assumptions (continued)
Share-based payments
The Group measures the cost of equity-settled transactions with suppliers and employees by reference to the fair
value of the goods or services received provided this can be estimated reliably. If a reliable estimate cannot be made
the value of the goods or services is determined indirectly by reference to the fair value of the equity instrument
granted. The fair value of the equity instruments granted is determined using an appropriate option pricing model
taking into account the terms and conditions upon which the instruments were granted. Volatility for these calculations
is determined with reference to the Group’s historical volatility for a comparable or appropriate period. The accounting
estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Please refer to Note 18 for further details.
(g)
Income tax
Current income tax expense or revenue is the tax payable on the current period's taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for temporary differences at the applicable tax rates when the assets
are expected to be recovered or liabilities are settled. Deferred tax liabilities are not recognised if they arise from the
initial recognition of goodwill. Deferred income tax is also not recognised if it arises from the initial recognition of an
asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
(h) Goods and services tax (GST)
Revenues, expenses and purchased assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost
of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows..
(i) Cash and cash equivalents
Cash and cash equivalents include cash on hand and at banks, short-term deposits with an original maturity of three
months or less held at call with financial institutions, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities on the statement of financial position
(j) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is
incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the
plant and equipment as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Office furniture and equipment
Plant and equipment
Motor vehicles
5 - 8 years
3 - 5 years
4 - 5 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-34-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j) Property, plant and equipment (continued)
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is based on the fair value less costs of disposal.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of profit or loss as impairment
expenses.
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(k) Exploration and evaluation
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration
and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised
of assets used in exploration and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to operational activities in a particular
area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount
of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger
than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
(l) Mine development expenditure
Mine development expenditure represents the accumulation of all exploration and evaluation expenditure incurred in
respect of areas of interest in which a decision to mine has been made. Plant construction and commissioning costs
are included as mine development expenditure until the commissioning phase is completed.
Once commission phase is completed and production commences, all assets under mine development expenditure
is transferred to mine property and plant. As at the date of the financial report, there are no mine development
expenditure recognised by the Group.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-35-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m) Mine property and plant
Once mine construction is completed, assets from mine development expenditure are transferred to mine property
and plant (which is a sub category in property, plant and equipment). Mine property and plant are stated at cost, less
accumulated depreciation and accumulated losses.
When further development expenditure is incurred in respect of mine property after the commencement of production,
such expenditure is carried forward as part of mine development expenditure only when substantial future economic
benefits are thereby established, otherwise such expenditure is classified as part of the cost of production.
Where mine property and plant is in production, amortisation of mine property and plant is provided on a unit of
production basis, which results in a write off of the cost proportional to the depletion of the proven and probable mineral
reserves. In accordance with its policy, the Group reviews the estimated useful lives of its mine property and plant on
an ongoing basis.
Where the Group’s mine property and plant is in care and maintenance, the Group has impaired assets to its fair value
less cost of disposal and the Group amortises over a straight-line basis to account for the physical wear and tear while
the asset remains idle, over an estimated remaining useful life of 5 years.
The net carrying value of each area of interest is reviewed regularly and to the extent to which this value exceeds its
recoverable amount, the excess is fully provided against or written off in the financial year in which this is determined.
(n) Leases
At the commencement date of a lease (other than leases of 12-months or less and leases of low value assets), the
Group recognises a lease asset representing its right to use the underlying asset and a lease liability representing its
obligation to make lease payments.
Lease assets
Lease assets are initially recognised at cost, comprising the amount of the initial measurement of the lease liability,
any lease payments made at or before the commencement date of the lease, less any lease incentives received, any
initial direct costs incurred by the Group, and an estimate of costs to be incurred by the Group in dismantling and
removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
Subsequent to initial recognition, lease assets are measured at cost (adjusted for any remeasurement of the
associated lease liability), less accumulated depreciation and any accumulated impairment loss.
Lease assets are depreciated over the shorter of the lease term and the estimated useful life of the underlying asset,
consistent with the estimated consumption of the economic benefits embodied in the underlying asset.
Lease liabilities
Lease liabilities are initially recognised at the present value of the future lease payments (i.e., the lease payments that
are unpaid at the commencement date of the lease). These lease payments are discounted using the interest rate
implicit in the lease, if that rate can be readily determined, or otherwise using the Group’s incremental borrowing rate.
Subsequent to initial recognition, lease liabilities are measured at the present value of the remaining lease payments
(i.e., the lease payments that are unpaid at the reporting date). Interest expense on lease liabilities is recognised in
profit or loss (presented as a component of finance costs). Lease liabilities are remeasured to reflect changes to lease
terms, changes to lease payments and any lease modifications not accounted for as separate leases.
Variable lease payments not included in the measurement of lease liabilities are recognised as an expense when
incurred.
Leases of 12-months or less and leases of low value assets
Lease payments made in relation to leases of 12-months or less and leases of low value assets (for which a lease
asset and a lease liability has not been recognised) are recognised as an expense on a straight-line basis over the
lease term.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-36-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o) Borrowing costs
Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of
lease arrangements, and exchange differences arising from foreign currency borrowings to the extent that they are
regarded as an adjustment to interest costs.
Borrowing costs are expensed as incurred, except for borrowing costs incurred as part of the cost of the construction
of a qualifying asset, in which case the costs are capitalised until the asset is ready for its intended use or sale.
(p) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions
of the instrument. For financial assets, this is equivalent to the date that the Group commits itself to either the purchase
or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value adjusted for transaction costs, except where the instrument
is classified as fair value through profit or loss, in which case transaction costs are immediately recognised as
expenses in profit or loss.
Classification of financial assets
Financial assets recognised by the Group are subsequently measured in their entirety at either amortised cost or fair
value, subject to their classification and whether the Group irrevocably designates the financial asset on initial
recognition at fair value through other comprehensive income (FVtOCI) in accordance with the relevant criteria in
AASB 9 Financial Instruments.
Classification of financial liabilities
Financial liabilities classified as held-for-trading, contingent consideration payable by the Group for the acquisition of
a business, and financial liabilities designated at FVtPL, are subsequently measured at fair value.
All other financial liabilities recognised by the Group are subsequently measured at amortised cost.
(q) Provisions – Employee benefits
(i) Wages, Salaries and Annual Leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave are recognised in respect of
employees’ services up to the reporting date. They are measured at their nominal values using the remuneration rate
expected to apply at the time of settlement. Liabilities for non-accumulating sick leave are recognised when the leave
is taken and are measured at the rates paid or payable.
(ii) Long Service Leave
The liability for long service leave is recognised and measured at the present value of expected future payments to
be made in respect of services provided by employees up to the reporting. Consideration is given to expected future
wage and salary levels, experience of employee of departures, and period of service.
(r) Provision for restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of development
activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and
the amount of the provision can be measured reliably. The estimated future obligations include the costs of abandoning
sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle
the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes in the
estimate are reflected in the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset and
amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory
in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of
the provision for restoration and rehabilitation are treated in the same manner unless they are not expected to be
recovered over the course of the Groups operation where they are recognised in the Statement of Profit or Loss. The
unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised
into the cost of the related asset.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-37-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(s) Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
(t) Earnings per share
Basic earnings per share (‘EPS’) is calculated as net profit or loss attributable to members of the Company for the
reporting period, after excluding any costs for servicing equity (other than ordinary shares and converting preference
shares classified as ordinary shares for EPS calculation purposes), by the weighted average number of ordinary
shares of the Company, adjusted for any bonus element.
Diluted earnings is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs
associated with dilutive potential ordinary share and the effect on revenues and expenses of conversion, by the
weighted average number of ordinary shares and potential dilutive ordinary shares, adjusted for any bonus element.
(u) Other revenue and other income
Interest revenue is measured in accordance with the effective interest method.
Dividend and other distribution revenue is recognised when the right to receive a dividend or other distribution has
been established. Dividends and other distributions received from associates and joint ventures are accounted for in
accordance with the equity method.
All revenue is measured net of the amount of goods and services tax (GST).
(v) Government grants
The Group recognises stimulus package from the Australian Taxation Office (“ATO”) as a government grant when
there is reasonable assurance that the entity will comply with the conditions attached to them, and the grant will be
received. The amount is recognised as other income in profit or loss.
(w) Events after the reporting date
Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the
reporting period and the date when the financial report is authorised for issue.
The amounts recognised in the financial statements reflect events after the reporting period that provide evidence of
conditions that existed at the reporting date. Whereas, events after the reporting period that are indicative of
conditions that arose after the reporting period (i.e., which did not exist at the reporting date) are excluded from the
determination of the amounts recognised in the financial statements.
(x) Rounding of amounts
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts
in the directors’ report and in the financial report have been rounded to the nearest to the nearest dollar (where
indicated).
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
Consolidated
2023
$
2022
$
(a) Other income
Gain from sale of non-current assets
Gain from sale of exploration assets
708
-
Gain on extinguishment of debt arrangements (refer to Note 14 &16)
5,060,075
Expected credit loss
Finance Income
Other
-
-
2,040
5,062,823
-
(2,099)
-
36,674
113,525
2,088
150,188
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE (continued)
-38-
(b) Depreciation and amortisation expense
Mine property and plant (refer to Note 9)
Other property, plant and equipment (refer to Note 9)
Right-of-use assets (refer to Note 10)
(c) Impairment expense
Impairment of deferred exploration expenditure Alpha Mine
Impairment of relinquished tenements
(d) Finance costs
Interest expenses
Interest expense on lease liabilities
Unwind of discount – borrowings
Unwind of discount – financial liability
Unwind of discount – long-term benefit (refer to Note 13)
Unwind of discount – rehabilitation provision (refer to Note 15)
(f) Share-based payments are included within:
Director Fees (refer to Note 19)
Employee benefits expense (refer to Note 19)
Consulting expenses
(g) Employee benefits expense:
Wages and salaries
Superannuation
Share-based payment expense (refer to Note 19)
Long-term employee benefits (refer to Note 13)
Other employment related expenses
Brightstar Resources Limited
-
19,258
20,028
43,383
23,574
677,181
700,755
17,675
2,432
-
-
77,149
266,084
363,340
131,624
86,750
-
218,374
358,983
19,404
16,555
394,942
47,828
-
47,828
57,862
397
112,261
719,607
-
67,001
957,128
-
87,626
150,000
237,626
Consolidated
2023
$
2022
$
212,516
34,553
86,750
771,495
26,798
1,132,112
237,957
22,000
87,626
-
304,341
651,924
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
-39-
NOTE 3: INCOME TAX
Brightstar Resources Limited
Consolidated
2023
$
2022
$
(a) Income tax recognised in statement of income
Accounting income/(loss) before tax from continuing operations
1,944,364
(3,920,251)
Income tax expense/(benefit) calculated at an income tax rate of 30% (2021:30%)
583,309
(1,185,075)
Non-deductible expenses
Capital Gain on acquisition of Kingwest
Non-assessable debt forgiveness income
Deferred Tax Position not recognised
Income tax expense reported in the statement of comprehensive income
(b) Recognised deferred tax balances 30% (2022: 30%)
Deferred tax assets comprise:
Tax Losses
Provision for doubtful debts
Mining assets (plant and equipment)
Plant and Equipment under lease
Provision for rehabilitation
Other business related costs
Other provisions
Accrued expenses
119,990
175,967
-
(879,266)
-
242,293
(11,002)
953,784
-
19,374,579
7,390,954
40,242
437,486
5,890
878,076
329,168
58,978
192,689
40,242
510,483
-
933,500
81,159
43,567
117,994
Deferred tax losses not brought to account
(21,317,108)
(6,611,451)
Deferred tax liabilities comprise:
Prepayments
Exploration expenditure capitalised
Offset against Deferred Tax Asset
-
2,506,448
(34,252)
(4,766)
(9,136,774)
(2,501,682)
9,171,026
-
-
(2,506,448)
The tax rate used in the above reconciliation is the corporate tax rate of 30% (2022: 30%) payable by Australian corporate
entities on taxable profits under Australian tax law. The company does not currently qualify as a Small Business Entity and
as such has recognised future deferred tax assets at 30%. The Company has conducted a preliminary review in respect
of losses incurred prior to formation of an income tax consolidated group and has determined that they are likely able to
be used by meeting the Same Business Test (SBT). Losses incurred between 1 July 2018 and 30 June 2023 are able to
be utilised under the Continuity of Ownership Test (COT).
(c) Unrecognised deferred tax assets
The Group has unrecognised deferred assets relating to revenue tax losses of $19,374,579 (2022: $7,390,954) which
equates to total revenue losses of $64,581,930 (2022: 24,636,513). The Group has unrecognised deferred tax liabilities
relating to Exploration Expenditure totalling $9,136,774 (2022: 2,501,682).
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 4: SEGMENT REPORTING
-40-
Brightstar Resources Limited
The group has identified its operating segments based on the internal reports that are reviewed and used by the board of
directors in assessing performance and determining the allocation of resources. Reportable segments disclosed are based
on aggregating operating segments, where the segments have similar characteristics. The group’s sole activity is mineral
exploration and resource development wholly within Australia; therefore the Group considers that it has one reportable
segment being mineral exploration with the state of Western Australia.
The reportable segment is represented by the primary statements forming these financial statements.
NOTE 5: EARNINGS PER SHARE
Basic and diluted earnings / (loss) per share:
Total basic earnings / (loss) per share
Total diluted earnings / (loss) per share
Basic and diluted (loss) / earnings per share
The earnings and weighted average number of ordinary shares used in the calculation
of basic and diluted earnings / (loss) per share is as follows:
Earnings / (Loss)
Consolidated
2023
2022
Cents per
share
Cents per
share
0.24
0.22
(0.73)
(0.73)
$
$
1,944,366
(3,950,250)
Weighted average number of ordinary shares for the purposes of basic loss per share
822,752,276
543,711,556
Adjusted weighted average number of ordinary shares for the purposes of diluted loss
per share
900,398,573
543,711,556
In the prior year share options are not dilutive as their inclusion would give rise to a reduced loss per share. In the current
year the above adjusted weighted average number of shares incorporates an adjustment to the calculation to incorporate
the effects of bonus elements (if any) in relation to rights issues.
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Consolidated
2023
$
2022
$
425,707
1,601,324
425,707
1,601,324
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying
periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates.
At 30 June 2023, the Group did not have any undrawn committed borrowing facilities.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 6: CASH AND CASH EQUIVALENTS (Continued)
-41-
(i) Reconciliation to Cash Flow Statement
Cash and cash equivalents as shown in the Statement of Cash Flows is reconciled to the related items in the Statement
of Financial Position as follows:
Consolidated
2023
$
2022
$
Cash and cash equivalents
425,707
1,601,324
(ii) Reconciliation of loss for the year to net cash flows used in operating activities
Profit/(loss) for the year:
Depreciation and amortisation
Impairment expenses
Exploration expenditure written off
(Gain) / Loss from sale of exploration assets
(Gain) / Loss from sale of non-current asset
Debt extinguishment
Bad debt written-off
Creditor written-off
Finance income
Finance costs
Other non-cash balance
Equity payment to directors and employees
(Increase)/decrease in assets:
Current receivables
Prepayments
Increase/(decrease) in liabilities:
Current payables
Current provisions
Other payables
Provision for rehabilitation
Net cash used in operating activities
Consolidated
2023
$
2022
$
1,944,366
(3,950,250)
43,383
700,755
125,512
-
(708)
(4,434,667)
-
-
-
1,264
-
707,605
78,743
(98,285)
394,942
47,828
673,934
2,099
-
-
12,378
(36,674)
(1,673)
720,016
24,688
237,626
(104)
(3,211)
(575,718)
387,648
45,628
848,633
(184,748)
(798,237)
32,485
-
67,001
(1,391,658)
(iii) Non-cash investing and financing activities
During the year, the Group had the following non-cash investing and financing activities:
-
-
-
-
A new lease arrangement was entered into during the year which resulted in a right of use asset addition of
$307,203.
Issue of 19,090,909 fully paid ordinary shares to Stone Resources (Hong Kong) Limited (“SRHKL”) at a price of
$0.033 per share, as equity settlement of the Cortex Loan.
Issue of 10,545,818 fully paid ordinary shares to SRHKL at a price of $0.028 per share, as non-cash payment of an
Option Fee for being granted a Royalty Buy-back Option
Issue of 12,131,227 fully paid ordinary shares to two directors and one employee at a price of $0.017 per share as
part of their remuneration under the remuneration arrangements they have with the Company.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 6: CASH AND CASH EQUIVALENTS (Continued)
-42-
Brightstar Resources Limited
-
Issue of 741,386,387 fully paid ordinary shares to shareholders of Kingwest Resources Ltd (“Kingwest”) as part
consideration for acquisition of Kingwest (“Consideration Shares”). $22,456,635 has been recognised and recorded
as the fair value of the Consideration Shares.
- Grant of 10,000,000 zero exercise price options (ZEPOs) exercisable on or before 30 November 2026 to the
Company’s former managing director William Hobba as a performance linked incentive component in the
remuneration package for Mr Hobba. A share-based payment expense of $81,375 has been recognised for the
year.
- Grant of 173,511,384 unlisted options to optionholders of Kingwest Resources Ltd (“Kingwest”) as part
consideration for acquisition of Kingwest (“Consideration Options”). $901,747 has been recognised and recorded as
the fair value of the Consideration Options.
- Grant of 80,000,000 Performance Rights expiring 31 March 2026 (in 6 tranches) were issued to the Company’s
managing director Alex Rovira upon shareholders’ approval obtained at the General Meeting held on 29 March
2023. A share-based payment expense of $119,999 has been recognised for the year.
During the prior year, the Group had the following non-cash investing and financing activities:
-
-
Issue of 15,000,000 fully paid ordinary shares at $0.046 per share and grant of 20,000,000 unlisted options
exercisable at five cents to Milford Resources Pty Ltd as consideration for the acquisition of tenement E38/3500
and E38/3504. This amount has been capitalised into deferred exploration and evaluation expenditure at 30 June
2022.
Issue of 5,172,414 fully paid ordinary shares to Mr Tony Lau as a part payment settlement, and grant of 2,200,000
unlisted options exercisable at five cents to two employees of Brightstar for provision of services.
NOTE 7: TRADE AND OTHER RECEIVABLES
Current
GST receivable
Trade and other receivables
NOTE 8: OTHER FINANCIAL ASSETS
Deposit for credit cards
Bank guarantee for office lease
Consolidated
2023
$
2022
$
82,728
51,719
134,447
-
403
403
Consolidated
2023
$
2022
$
25,000
25,943
50,943
25,000
-
25,000
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
-43-
Brightstar Resources Limited
Office furniture and equipment:
At cost
Accumulated depreciation
Plant and equipment:
At cost
Accumulated depreciation
Motor vehicles:
At cost
Accumulated depreciation
Mine property and plant:
At cost
Accumulated depreciation
Land and building:
At cost
Accumulated depreciation
Consolidated
2023
$
133,346
(104,273)
29,074
2022
$
104,543
(77,615)
26,928
158,651
1,161,949
(130,991)
(1,161,949)
27,660
-
345,989
224,228
(234,542)
(164,975)
111,447
59,253
391,391
358,983
(358,983)
(358,983)
32,408
103,662
(6,877)
96,785
-
-
-
-
Reconciliation of movement in property plant and equipment
Consolidated
Office
furniture and
equipment
Plant and
equipment Motor vehicles
Mine property
and plant1
Land and
building
$
$
$
$
$
Total
$
Year ended 30 June 2022
At 1 July 2021, net of
accumulated depreciation and
impairment
Additions
Disposal / write-offs
26,877
639
68,399
358,983
9,674
-
-
-
-
-
-
-
Depreciation charge for the year
(9,622)
(639)
(9,145)
(358,983)
At 30 June 2022, net of
accumulated depreciation and
impairment
26,928
-
59,253
-
-
-
-
-
-
454,898
9,674
(378,389)
86,183
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 9: PROPERTY, PLANT AND EQUIPMENT (continued)
-44-
Reconciliation of movement in property plant and equipment
Consolidated
Office
furniture and
equipment
Plant and
equipment Motor vehicles
Mine property
and plant1
Land and
building
$
$
$
$
$
Total
$
Year ended 30 June 2023
At 1 July 2022, net of
accumulated depreciation and
impairment
26,982
-
59,253
-
Additions
3,994
22,500
-
32,408
-
-
86,183
58,902
Additions through acquisition of
subsidiary
9,023
5,656
63,791
Disposal / write-offs
-
-
(56)
Depreciation charge for the year
(10,870)
(496)
(11,540)
-
-
-
97,234
175,703
-
(56)
(449)
(23,356)
At 30 June 2023, net of
accumulated depreciation and
impairment
29,074
27,660
111,447
32,408
96,784
297,376
(1) Mine Property and Plant: Since processing of mined ore ceased in January 2012 and toll treatment ceased in
August 2012 and pending its reinstatement, an assessment of the recoverable value of non-current assets in
compliance with AASB 136 was carried out in accordance with assumptions disclosed in Note 1(e)
“Recoverability of mine property and plant” and impairments were recognised. The total impairment value
recognised of $14,941,733 remains unchanged. The Board recognise that the previously impairment value of
$14,941,733 can be written back in future periods.
NOTE 10: LEASES
Right-of-use assets
Office Lease
Cost
Accumulated depreciation
Net carrying amount
Reconciliation of movement in Right-of-Use Assets
Opening carrying amount
Additions
Depreciation charge for the year
Closing carrying amount
Consolidated
2023
$
2022
$
307,203
(5,120)
302,083
65,934
(51,026)
14,908
2023
$
2022
$
14,908
307,203
(20,028)
302,083
13,573
17,890
(16,555)
14,908
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 10: LEASES (continued)
-45-
Lease liabilities
Office Lease
Current
Non-current
NOTE 11: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of:
Exploration and evaluation expenditure
Balance at beginning of year
Acquisition of subsidiary (refer Note 12)
Expenditure incurred
Expenditure written off
Impairment of Goongarrie Project (i)
Impairment of Alpha and Beta mines (ii)
Acquisition of tenements
Balance at end of financial year
Brightstar Resources Limited
2023
$
2022
$
45,941
275,775
321,716
14,907
-
14,907
Consolidated
2022
2023
$
13,270,922
23,344,038
2,091,155
-
(677,181)
(23,574)
9,313,231
-
3,006,429
(532,504)
-
(47,828)
2,000
1,531,594
38,007,360
13,270,922
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is
dependent upon the successful development and commercial exploitation or sale of the respective areas.
(i) The Company acquired the Goongarrie Project as a result of the acquisition of Kingwest Resources Ltd (refer note
12). Drilling was Suspended in September 2022 and there has been no commitment of future funds on an exploration
program. The balance of expenditure for Goongarrie Project has been treated as impaired.
(ii) Mining in Beta and Alpha reached its designed pit depth in prior periods and evaluation is currently underway to
determine the future viability of these areas of interest. Notwithstanding, the balance of expenditure for Beta and
Alpha mines has been treated as impaired until recommencement of mining in these tenements.
NOTE 12: ASSET ACQUISITION
On 26 May 2023, the Group completed the acquisition of 100% of Kingwest Resources Ltd (“Kingwest”), referred to
herein as the “acquisition”. The total purchase consideration is $23,902,420, including issuance of 741,386,387 shares
and 173,511,384 options in the Company (valued at $ 22,456,635 and $ 901,747 respectively, based on the fair value of
the securities at the date of acquisition), together with capitalised transactions costs of $544,038.
Kingwest owns 100% of the advanced Menzies Gold Project (“MGP”) and the greenfields Goongarrie Gold Project. As of
26 May 2023, the Mineral Resource estimate of the MGP is 11.77 Mt at 1.33 g/t for 505,100 ounces of contained gold.
The Group determined that the acquisition of Kingwest does not meet the definition of a business under AASB 3
Business Combinations. Instead, it qualifies as an asset acquisition. Accordingly, individual assets acquired are
recognised and measured at their respective fair value on the acquisition date. No goodwill, gain on bargain purchase or
deferred tax is recognised. Transactions costs which are directly attributable to the acquisition of the assets are
capitalised on the balance sheet.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 12: ASSET ACQUISITION (continued)
-46-
Brightstar Resources Limited
As the consideration transferred for the assets acquired was settled via issuance of shares and options, the Group is
required to apply AASB 2 Share-based Payment for recognition of equity-settled payments. An increase of $11,808,167
in the fair value of purchase consideration was recognised to reflect the excess fair value of net assets and liabilities
acquired.
Details of the purchase consideration and the net assets acquired are shown as follows:
Purchase consideration
Ordinary shares issued
Unlisted options issued
Acquisition costs
Total Purchase Consideration
Net Assets Acquired
Cash and cash equivalents
Trade and other receivables
Property, plant and equipment
Exploration & Evaluation
Trade and other payables
Provisions
Total Net Assets Acquired
NOTE 13: TRADE AND OTHER PAYABLES
Current
Trade payables (i)
Other payables and accruals
Non-Current
Other payables and accruals (ii)
$
22,456,635
901,747
544,038
23,902,420
As of 26 May 2023
$
699,482
176,147
175,703
23,344,038
(487,209)
(5,741)
23,902,420
Consolidated
2023
$
958,521
656,166
1,614,687
848,644
848,644
2022
$
830,584
1,209,750
2,040,334
-
-
(i) Trade payables are non-interest bearing and are normally settled on 30-day terms.
(ii) A $1,140,000 cash bonus was granted to a former Director during the reporting period and will be progressively
paid upon various pre-established milestones being achieved. At initial recognition, this long-term benefit was
valued at $771,495 (present value) and recognised as a non-current liability. The periodic unwinding of the
discount, at 10%, has be recognised in the condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income as finance costs.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 14: BORROWINGS
-47-
Current
Non-current
Brightstar Resources Limited
Consolidated
2023
$
-
-
-
2022
$
-
628,736
628,736
Great Cortex International Ltd (Cortex) provided a loan of AUD$630,000 which has been accruing interest at 9.31% per
annum since February 2012 (“Cortex Loan”). This loan was reclassified as non-current liability, revalued at its fair value
and subsequently measured at amortised cost in the 2022 financial year. On 18 October 2022 the loan principal was
settled by issuance of 19,090,909 BTR shares at a deemed issue price of $0.033 per share to a party nominated by
Cortex. The original loan agreement which was executed in September 2012 was subsequently announced terminated.
All liabilities under the original loan agreement including interest accrued are deemed to have been discharged.
NOTE 15: PROVISIONS
At 1 July 2022
Current
Non-current
At 30 June 2023
Current
Non-current
Rehabilitation
Employee benefits
$
$
Total
$
-
3,111,668
3,111,668
-
2,926,920
2,926,920
145,225
-
145,225
196,593
-
196,593
145,225
3,111,668
3,256,893
196,593
2,926,920
3,123,513
The provision for rehabilitation represents the present value of estimated costs of site and pit rehabilitation based upon
costs of rehabilitation expected to be incurred at the date the rehabilitation is required and the area of currently disturbed
ground subject to rehabilitation as at balance date.
Reconciliation of movement in provision for rehabilitation:
Consolidated
2023
$
2022
$
Balance at beginning of financial year
3,111,668
3,044,667
Addition
Utilised
Reassessment (i)
Unwind of discount
Balance at end of financial year
-
-
(450,832)
266,084
2,926,920
-
-
-
67,001
3,111,668
(i) The Group remeasures the present value of the provision for rehabilitation utilising a pre-tax discount rate
appropriate to the risks inherent in the liability. In light of recent economic information, including the consumer
price index and interest rate levels, the Group remeasured it’s provision for rehabilitation at a pre-tax discount
rate of 10% (30 June 2022: 4.46%). A reduction of $450,832 has been recognised in the Consolidated
Statement of Profit or Loss and other comprehensive income for the year as a result of the above change in
pre-tax discount rate.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 16: OTHER FINANCIAL LIABILITIES
-48-
Amounts payable under share buy-back
Total other financial liabilities
Brightstar Resources Limited
Consolidated
2023
$
-
-
2022
$
4,434,667
4,434,667
Following completion of Debt and Equity Compromise Agreement (“DECA”) on 18 November 2020, the buy-back
consideration for shares bought back included a deferred payment of $5,400,000 to be paid in cash or shares, at the
Company’s election, by 10 August 2023. As at end of the prior reporting period, 30 June 2022, the remaining balance of
buy-back consideration represents a financial instrument measured at fair value on day one, then subsequently at
amortised cost.
On 18 October 2022, the $5,400,000 debt was fully extinguished in exchange for the grant of a 1.5% NSR royalty on six
tenements which are not covered by the original DECA. The arrangement was approved by shareholders on 17 October
2022.
NOTE 17: ISSUED CAPITAL
Ordinary shares issued and fully paid
Consolidated
2023
$
2022
$
68,981,082
43,254,388
Consolidated
2023
Consolidated
2022
No.
$
No.
$
Movement in ordinary shares on issue
Balance at beginning of financial year
646,860,869
43,254,388
439,750,764
37,857,909
Share issued during the year (i)
927,154,341
25,852,866
207,110,105
5,687,318
Costs associated with issue of shares
-
(126,172)
-
(290,839)
Balance at end of financial year
1,574,015,210
68,981,082
646,860,869
43,254,388
(i) Details of the shares issued during the year are shown as follows:
Ordinary shares
Date
No.
$
2023
Equity settlement of Cortex Loan (Note 14)
18 October 2022
19,090,909
Equity settlement of Option Fee (Note 21)
18 October 2022
10,545,818
Placement
4 November 2022
44,000,000
Equity settlement of deferred remuneration (Note 19)
30 November 2022
11,131,227
Share-based employee bonus (Note 19)
30 November 2022
1,000,000
630,000
300,000
660,000
189,231
17,000
Placement
11 January 2023 – 31
March 2023
100,000,000
1,600,000
Acquisition of Kingwest Resources Ltd (Note 12)
26 May 2023
741,386,387
22,456,635
927,154,341
25,852,866
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 17: ISSUED CAPITAL (continued)
-49-
Brightstar Resources Limited
2022
Placement
8 October 2021
86,937,691
2,347,318
Equity settlement of a fee
1 December 2021
5,172,414
Acquisition of exploration assets
1 December 2021
15,000,000
150,000
690,000
Placement
23 March 2023
100,000,000
2,500,000
207,110,105
5,687,318
NOTE 18: RESERVES
Share-based payment reserve
Equity Reserve
Movement in share-based payment reserve
Balance at beginning of financial year
Share based payments (Note 19)
Balance at end of financial year
Nature and Purpose of Reserves
Consolidated
2023
$
2,458,253
4,910,710
7,368,963
2022
$
1,355,132
4,910,710
6,265,842
Consolidated
2023
$
2022
$
1,355,132
1,103,121
485,912
869,220
2,458,253
1,355,132
Share-based payments reserve
This reserve is used to record the value of equity benefits provided to employees and unrelated parties for services or
acquisition.
Equity reserve
This reserve was created to record the difference between the fair value of the buy-back consideration and the historical
issue value of the buy-back shares upon completion of the DECA.
NOTE 19: SHARE-BASED PAYMENTS
Shares
(1) On 18 October 2022, the Company issued:
(i) 19,090,909 fully paid ordinary shares to Stone Resources (Hong Kong) Limited (“SRHKL”) at a price of $0.033
per share, as equity settlement of the Cortex Loan (see Note 14 for further information).
(ii) 10,545,818 fully paid ordinary shares to SRHKL at a price of $0.028 per share, as non-cash payment of an
Option Fee for being granted a Royalty Buy-back Option (see Note 12 for further information).
(2) On 30 November 2022, 12,131,227 fully paid ordinary shares were to two directors and one employee at a price of
$0.017 per share as part of their remuneration under the remuneration arrangements they have with the Company.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 19: SHARE-BASED PAYMENTS (continued)
-50-
Brightstar Resources Limited
(3) On 26 May 2023, 741,386,387 fully paid ordinary shares were issued to shareholders of Kingwest Resources Ltd
(“Kingwest”) as part consideration for acquisition of Kingwest (“Consideration Shares”). $22,456,635 has been
recognised and recorded as the fair value of the Consideration Shares.
Consideration Shares
Number of shares issued
Closing share price as at 26 May 2023
Value of shares
Fair value allocation (i)
Total fair value of Consideration Shares
741,386,363
$0.015
$11,120,795
$11,335,840
$22,456,635
(i) As outlined within note 12, the acquisition of Kingwest by the Company has been accounted for as an asset
acquisition. Given the consideration transferred for the assets acquired was settled via issuance of shares and options,
the Company is required to apply AASB 2 for recognition of the equity-settled share-based payments.
When applying AASB 2, the Company is required to measure the assets acquired and the corresponding increase in
equity, directly, at the fair value of the assets acquired, unless that fair value cannot be estimated reliably. If the fair value
of assets acquired cannot be estimated reliably, the value recognised will be at the fair value of the equity instruments
granted. It was concluded the assets can reliably be measured. As such, a corresponding increase (or uplift) in equity is
required for the excess value of net assets and liabilities acquired.
This allocation was determined by measuring the fair value of the equity instruments themselves and apportioning the
uplift to the excess of the fair value of assets acquired to each component of equity based on their relative stand-alone
equity measured fair value.
As a result, consideration paid in issued capital had an uplift of $11,335,840 to $22,456,635 and consideration paid in
options had had an uplift of $472,327 to $901,747.
Share Options
2023
Grant date Expiry date
Exercise
price
Balance at
1 July 2022
Granted
during the
year
Exercised
during the
year
Expired
during the
year
Balance at
30 June
2023
Exercisable
at 30 June
2023
9-Apr-20
31-Dec-20
31-Dec-20
31-Dec-20
12-Feb-21
22-Jun-21
1-Dec-21
1-Dec-21
30-Nov-22
26-May-23
26-May-23
26-May-23
26-May-23
26-May-23
26-May-23
26-May-23
26-May-23
26-May-23
26-May-23
8-Apr-23
31-Dec-23
31-Dec-23
31-Dec-23
12-Feb-24
22-Jun-24
1-Dec-24
31-Dec-24
30-Nov-26
15-Sep-23
30-Dec-23
29-Feb-24
15-Sep-24
21-Oct-24
7-Oct-24
15-Feb-25
28-Apr-25
16-Jan-26
16-Jan-26
$0.010
$0.060
$0.080
$0.100
$0.100
$0.045
$0.050
$0.050
$0.000
$0.068
$0.057
$0.038
$0.065
$0.076
$0.106
$0.108
$0.095
$0.023
$0.038
15,000,000
4,000,000
4,000,000
4,000,000
1,000,000
5,000,000
2,200,000
20,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
2,960,526
59,243,413
50,991,656
16,447,368
21,052,631
7,815,789
4,473,685
3,289,474
3,289,474
3,947,368
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(15,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,000,000
4,000,000
4,000,000
1,000,000
5,000,000
2,200,000
20,000,000
10,000,000
2,960,526
59,243,413
50,991,656
16,447,368
21,052,631
7,815,789
4,473,685
3,289,474
3,289,474
3,947,368
-
4,000,000
4,000,000
4,000,000
1,000,000
5,000,000
2,200,000
20,000,000
10,000,000
2,960,526
59,243,413
50,991,656
16,447,368
21,052,631
7,815,789
4,473,685
3,289,474
3,289,474
3,947,368
55,200,000 183,511,384
-
(15,000,000)
223,711,384 223,711,384
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 19: SHARE-BASED PAYMENTS (continued)
-51-
Brightstar Resources Limited
2022
Grant date
Expiry
date
Exercise
price
Balance at
1 July 2021
Granted
during the
year
Exercised
during the
year
Expired
during the
year
Balance at
30 June
2022
Exercisable
at 30 June
2022
9-Apr-20
8-Apr-23
$0.010
15,000,000
-
-
-
15,000,000
15,000,000
31-Dec-20
31-Dec-23
$0.060
4,000,000
-
-
-
4,000,000
4,000,000
31-Dec-20
31-Dec-23
$0.080
4,000,000
-
-
-
4,000,000
4,000,000
31-Dec-20
31-Dec-23
$0.100
4,000,000
-
-
-
4,000,000
4,000,000
12-Feb-21
12-Feb-24
$0.100
1,000,000
-
-
-
1,000,000
1,000,000
22-Jun-21
22-Jun-24
$0.045
5,000,000
-
-
-
5,000,000
5,000,000
1-Dec-21
1-Dec-24
$0.050
-
2,200,000
-
-
2,200,000
2,200,000
1-Dec-21
31-Dec-24
$0.050
-
20,000,000
-
-
20,000,000
20,000,000
33,000,000
22,200,000
-
-
55,200,000
55,200,000
(1) On 30 November 2022, 10,000,000 zero exercise price options (ZEPOs) exercisable on or before 30 November 2026
were issued to the Company’s former managing director William Hobba as a performance linked incentive component
in the remuneration package for Mr Hobba.
80% of the ZEPOs will vest upon the holder serving 12 months, from the date of grant, of continual services with the
Company either as a Director, consultant or employee. 20% of the ZEPOs will vest in 24 months upon the same
continual service requirement is fulfilled.
The fair value of these options granted was calculated by using the Black Scholes Option Pricing Model by applying
the following inputs:
ZEPOs
Number of Options
Date of grant
Share price at grant date
Volatility factor
Risk free rate
Life of the Options (years)
Exercise price
Valuation per Option
Total fair value of ZEPOs
10,000,000
29-Nov-2022
$0.016
153.21%
3.24%
4
Nil
$0.0155
$155,000
The valuation of the ZEPOs will be expensed in the Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income over the vesting period per vesting conditions (i.e. 80% over 12 months and 20% over 24
months). For the year ended 30 June 2023, a share-based payment expense of $81,375 has been recognised.
Volatility was determined by calculating the historical volatility of the Company’s share price over the previous three
years.
(2) On 26 May 2023, 173,511,384 unlisted options were issued to option holders of Kingwest Resources Ltd
(“Kingwest”) as part consideration for acquisition of Kingwest (“Consideration Options”). $901,747 has been
recognised and recorded as the fair value of the Consideration Options.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 19: SHARE-BASED PAYMENTS (continued)
-52-
Brightstar Resources Limited
Consideration Options
Tranche Number of
Date of grant
options
Share
price at
grant
date
Volatility
factor
Risk free
rate
Life of the
options
(years)
Exercise
price
Valuation
per
option
1
2
3
4
5
6
7
8
9
2,960,526
26-May-2023
$0.015
108.00%
3.57%
0.33
$0.068
$118
7,815,789
26-May-2023
$0.015
127.40%
3.57%
1.39
$0.106
$17,898
21,052,632
26-May-2023
$0.015
126.50%
3.57%
1.43
$0.076
$66,105
16,447,368
26-May-2023
$0.015
118.60%
3.57%
1.33
$0.065
$44,901
4,473,684
26-May-2023
$0.015
124.60%
3.57%
1.75
$0.108
$13,734
59,243,421
26-May-2023
$0.015
123.50%
3.57%
0.62
$0.057
$58,059
3,289,474
26-May-2023
$0.015
121.90%
3.57%
1.95
$0.095
$12,237
50,991,668
26-May-2023
$0.015
131.70%
3.57%
0.79
$0.038
$155,525
3,289,474
26-May-2023
$0.015
119.30%
3.57%
2.67
$0.023
$30,132
10
3,947,368
26-May-2023
$0.015
119.30%
3.57%
2.67
$0.038
$30,711
Value of Options
Fair value allocation (i)
Total fair value of Consideration Options
$429,420
$472,327
$901,747
(i) Refer to consideration shares above for further details
Performance Rights
(1) On 31 March 2023, 80,000,000 Performance Rights expiring 31 March 2026 (in 6 tranches) were issued to the
Company’s managing director Alex Rovira upon shareholders’ approval obtained at the General Meeting held on 29
March 2023.
20% of the Performance Rights will vest upon the holder remaining in continuous employment with the Company for
a period of 24 months from the date of grant. 80% of the Performance Rights will vest in 36 months following
satisfaction of the vesting conditions. Each tranches’ vesting conditions are detailed below:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 19: SHARE-BASED PAYMENTS (continued)
-53-
Brightstar Resources Limited
Tranche
Vesting condition
Percentage
1
2
3
4
5
6
Remaining continuously employed or otherwise engaged by the Company (or any other
Group member) for a period of 24 months from commencement date
Announcement by the Company of the delineation of a Mineral Resource Estimate of at
least 1.25Moz Au above 1.3g/t Au
Announcement by the Company of the commencement of commercial production at the
Company’s Brightstar Gold processing plant of at least 10,000oz
Announcement by the Company of gold production of 100koz or greater of contained gold
metal
The Company achiever either:
(i)
(ii)
a market capitalization of greater than $50,000,000 or;
A 20-Day VWAP of greater than $0.04
The Company achiever either:
(i)
(ii)
a market capitalization of greater than $75,000,000 or;
A 20-Day VWAP of greater than $0.06
20%
10%
20%
10%
10%
10%
The fair value of these options granted was calculated by using the Black Scholes Option Pricing Model by applying the
following inputs:
Performance Rights
Number of Rights
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
Date of grant
29-Mar-
2023
Share price at grant date
$0.016
29-Mar-
2023
$0.016
29-Mar-
2023
$0.016
29-Mar-
2023
$0.016
29-Mar-
2023
$0.016
29-Mar-
2023
$0.016
Volatility factor
Risk free rate
136.19%
136.19%
136.19%
136.19%
136.19%
136.19%
2.9%
2.9%
2.9%
2.9%
2.9%
2.9%
Life of the Rights (years)
Exercise price
3
Nil
3
Nil
3
Nil
3
Nil
3
Nil
3
Nil
Valuation per Right
$0.016
$0.016
$0.016
$0.016
$0.016
$0.016
Valuation per Tranche
$320,000
$160,000
$320,000
$160,000
$160,000
$160,000
The valuation of the Performance Rights will be expensed in the Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income over the vesting period per vesting conditions (i.e. 20% over 24 months and 80%
over 36 months). For the year ended 30 June 2023, a share-based payment expense of $119,999 has been
recognised.
Volatility was determined by calculating the historical volatility of the Company’s share price over the previous three
years.
NOTE 20: FINANCIAL INSTRUMENTS
(a) Capital risk management
The capital structure of the Group consists of cash and cash equivalents, and equity attributable to equity holders of the
parent, comprising issued capital, reserves and retained earnings.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax
and general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the
risks associated with each class of capital.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 20: FINANCIAL INSTRUMENTS (continued)
-54-
(b) Categories of financial instruments
Financial assets
Cash and cash equivalents
Trade and receivables
Financial liabilities
Trade and other payables
Lease liabilities
Borrowings
Other financial liabilities
Brightstar Resources Limited
Consolidated
2023
$
2022
$
425,707
134,447
1,601,324
403
1,614,687
2,040,334
45,941
-
-
14,907
628,736
4,434,667
The Group’s principal financial instruments are cash, short-term deposits, receivables and payables. All financial
instruments are recognised at amortised cost
(c) Market risk
The Group’s mining operations were under care and maintenance throughout the current year and therefore not exposed
to market risk.
(d) Foreign currency risk management
The Group does not have any material exposure to foreign currency risk, other than its impact on the economy and
commodity price generally.
(e) Credit risk management
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the counterparty by failing to
discharge an obligation.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at the reporting date of
recognised financial assets is the carrying amount of those assets, net of any allowance for credit losses, as disclosed in
consolidated statement of financial position and notes to the consolidated financial statements.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The credit risk on liquid
funds is limited because the counterparties are banks with a minimum credit rating of AA assigned by reputable credit
rating agencies. The Group’s maximum exposure to credit risk at the reporting date was $560,154. The Group does not
have any other material credit risk exposure to any single counterparty or group of counterparties under financial
instruments entered into by the group.
(f) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities.
The following table details the company’s and the Group’s expected maturity for its non-derivative financial liabilities. These
have been drawn up based on undiscounted contractual maturities of the financial assets including interest that will be
earned on those assets except where the Group anticipates that the cash flow will occur in a different period.
Brightstar Resources Limited
-55-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 20: FINANCIAL INSTRUMENTS (continued)
(f) Liquidity risk management (continued)
Consolidated
Weighted
Average
Interest
rate
Less than 1
month
1 – 3 Months
3 months – 1
year
1 – 2 years
2 – 5 years
%
$
$
$
$
$
2023
Non-interest bearing
Interest bearing loans
Lease liabilities
9.31%
8.08%
1,614,677
-
-
-
-
-
1,140,000
-
-
-
6,163
12,325
55,678
76,761
239,465
Other financial liabilities 19.37%
-
-
-
-
-
1,618,687
8,103
37,839
905,490
218,928
2022
Non-interest bearing
Interest bearing loans
Lease liabilities
8.49%
4.91%
2,040,334
-
-
-
-
-
-
630,000
1,490
2,981
10,435
-
Other financial liabilities
19.37%
-
-
-
5,400,000
2,041,824
2,981
10,435
6,030,000
-
-
-
-
-
(g) Commodity price risk
The Group’s mining operations were under care and maintenance throughout the current year and therefore not exposed
to commodity risk.
(h) Fair values
Set out below is a comparison by category of carrying amounts and fair values of all of the Group's financial instruments
recognised in the financial statements.
Carrying Amount
Fair Value
2023
$
2022
$
2023
$
2022
$
Financial Assets
Cash and cash equivalents
Trade and other receivables - current
425,707
134,447
1,601,324
403
425,707
134,447
1,601,324
403
Financial Liabilities
Trade and other payables
1,614,687
2,040,334
1,614,687
2,040,334
Lease liabilities
Borrowings
Other financial liabilities
45,941
-
-
14,907
628,736
4,434,667
45,941
-
-
14,907
628,736
4,434,667
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 21: COMMITMENTS AND CONTINGENCIES
-56-
Brightstar Resources Limited
Exploration commitments
The Group has an expenditure commitment of $1,387,800 for the 2023-2024 period to sustain current tenements under
lease from the Department of Mines, Industry Regulation and Safety (DMIRS). The expenditure commitment includes
annual tenement rentals of $264,311 (2022: $108,977).
Capital expenditure commitments
The Directors are not aware of any other commitments from the Group’s operations as at 30 June 2023.
Contingencies
The Company will pay SRHKL 3% net smelter return (“NSR”) royalty on gold produced from most of the tenements listed
in the Tenement Schedule in the Company’s 2020 Annual Report.
As part consideration for acquisition of exploration licences E38/3438, the Company agreed to pay Mining Equities Pty Ltd
1% NSR on gold produced from the above the tenement.
Exploration licence E38/3279 is subject to 1% NSR on gold produced from it which is payable to Mr Peter Gianni.
As announced on 25 October 2021, the Group acquired two prospective exploration licences within Western Australia,
E38/3500 and E38/3504, from Milford Resources Pty Ltd. Pursuant to the acquisition agreement, Milford Resources Pty
Ltd is entitled to a 1% net smelter royalty with respect of the tenements.
In exchange for extinguishing $5,400,000 debt owed to SRHKL, the Company granted a 1.5% NSR royalty over six
tenements (i.e. E38/3279, E38/3434, E38/3438, E38/3500, E38/3504 and P38/4508) to SRHKL on 18 October 2022. This
arrangement was approved by shareholders on 17 October 2022.
On 17 July 2023 the Company announced a tenement swap arrangement under which a 2% NSR was granted to Ardea
Resources Limited on lithium extracted and sold from E29/981.
Additional historical royalties may also exist over certain tenements of the Company. Whether the obligations to pay those
royalties remains is to be determined. Exploration on the abovementioned tenements have not reached a stage where a
royalty can be reliably estimated and hence no value has been attributed to the contingencies.
There were no other contingencies as at 30 June 2023 other than already disclosed
NOTE 22: RELATED PARTY DISCLOSURE
(a) Key management personnel
Disclosure relating to key management personnel are set out in Note 24 and the remuneration report included in the
directors’ report.
(b) Subsidiaries
Brightstar Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
The consolidated financial statements include the financial statements of Brightstar Resources Limited and the
subsidiaries listed in the following table.
Country of
% Equity Interest
Incorporation
2023
2022
Name
Desert Exploration Pty Ltd
Kingwest Resources Pty Ltd (i)
Roman Kings Pty Ltd (i)
Golden Gladiator Pty Ltd (i)
Australia
Australia
Australia
Australia
Menzies Operational and Mining Pty Ltd (i) Australia
Goongarrie Operational and Mining Pty Ltd (i) Australia
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
(i) During the year, the Company acquired Kingwest Resources Pty Ltd, refer to note 12 for details. As a result the
Company is to consolidate Kingwest Resources Pty Ltd wholly owned subsidiaries including the abovementioned
companies.
Brightstar Resources Limited
-57-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 22: RELATED PARTY DISCLOSURE (continued)
(c) Transactions with related parties
Purchases from and sales to related parties are made on terms equivalent to those that prevail in arm’s length transactions.
On 18 October 2022, with shareholders approval, the Group completed the following transactions with SRHKL(at the time
of transaction SRHKL was a related party of the Group by virtual of Mr Yongji Duan being a director of both SRHKL and
the Group) :
(i) A 1.5% NSR royalty over six tenements (i.e. E38/3279, E38/3434, E38/3438, E38/3500, E38/3504 and P38/4508)
was granted to SRHKL, in exchange for extinguishing $5,400,000 debt owed to SRHKL;
(ii) 10,545,818 shares were issued at a deemed issue price of $0.02845 per share to SRHKL, as non-cash payment
of an Option Fee for being granted a Royalty Buy-back Option (Call Option). If the Call Option is exercised, the
Group can purchase the 3% NSR which is currently applicable to a substantial portion of the Group’s tenement
holdings in cash and/or BTR shares at the discretion of the Board. The exercise price of this Call Option is US$25
million, and the expiry is 5 calendar years since settlement date of this Call Option Deed; and
(iii) 19,090,909 fully paid ordinary shares in the Company were issued to SRHKL at an issue price of $0.033 per
share, as non-cash settlement of the Cortex Loan. The original loan agreement which was executed by the
Company and Cortex in September 2012 was subsequently announced terminated, and all liabilities under that
loan agreement including interest accrued are deemed to have been discharged.
Details of other related parties’ transactions are shown as follows:
2023
$
2022
$
Hunt DRG – related party to Josh Hunt
Provision of legal and compliance services which fell outside of the scope of Mr
Hunt’s director duties
24,500
33,500
Other than as outlined above, the Group did not enter into any further related party transactions with the Director, key
management personnel or their related entities.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 23: PARENT ENTITY DISCLOSURES
-58-
Brightstar Resources Limited
Set out below is the summarised financial information of Brightstar Resources Limited, the parent entity of the Group. The
Group’s accounting policies are applied consistently across all entities within the Group, unless otherwise stated.
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total equity
Financial performance
30 June 2023
$
30 June 2022
$
204,916
1,652,869
39,477,322
13,372,013
39,682,238
15,024,882
1,391,724
4,051,339
5,443,063
2,200,466
8,175,071
10,375,537
68,981,082
43,254,388
(42,110,860)
(44,883,720)
7,368,963
34,239,185
6,265,842
4,636,510
30 June 2023
$
30 June 2022
$
Total profit and other comprehensive income / (loss) for the year (after tax)
2,772,860
(3,950,250)
Commitments and Contingencies of the parent entity
Commitments and contingencies of the parent entity are the same as those of the group (refer Note 21).
NOTE 23: EVENTS AFTER THE BALANCE DATE
On 4 August 2023 the Company completed a Share Placement raising gross proceeds of $3.5 million (before costs) at an
issue price of $0.011 per share. Approximately 304.5 million fully paid ordinary shares were issued to sophisticated
investors. The remaining approximately 13.6 million shares will be issued to the Directors of the Company upon receipt of
shareholder approval.
Mining at the Selkirk Deposit under the joint venture with BML Ventures Pty Ltd commenced 21 August 2023. This project
is budgeted on a gold price of $2,850 per ounce. Under the joint venture arrangement, the Group receives 50% of the
Selkirk Project’s net cashflow which is expected to be generated and distributed to the Company in the first quarter of 2024
calendar year.
Results of the Scoping Study from the Menzies & Laverton Gold Projects located in WA’s Goldfields region were
announced on 6 September 2023. The Scoping Study illustrates that the development of the Menzies and Laverton Gold
Projects is a commercially viable stand-alone mining operation and accordingly the Board of the Company has approved
progression to a Preliminary Feasibility Study.
There were no other significant events occurring after balance sheet date requiring disclosure other than already disclosed.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2023
NOTE 24: AUDITOR’S REMUNERATION
-59-
Brightstar Resources Limited
During the financial year the following fees were paid or payable for services provided by Pitcher Partners BA&A Pty Ltd,
the auditor of the company, and its related entity.
Consolidated
2023
$
2022
$
Audit services - Pitcher Partners BA&A Pty Ltd
-
Audit or review of the financial statements
44,770
40,600
Other services - Pitcher Partners BA&A Pty Ltd
-
Taxation compliance services
10,540
18,400
55,310
59,000
NOTE 25: KEY MANAGEMENT PERSONNEL DISCLOSURES
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated
entity is set out below:
Short term employee benefits
Share-based payments
Other long-term benefits
Post-employment benefits
Total key management personnel compensation
2023
$
512,939
201,375
848,644
36,735
1,599,693
2022
$
639,130
189,830
-
22,000
850,960
Brightstar Resources Limited
-60-
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Brightstar Resources Limited (the ‘Company’):
a.
the accompanying financial statements, notes and the additional disclosures of the Group are in accordance
with the Corporations Act 2001 including:
i.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance
for the year then ended; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Regulations 2001; and
b.
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
c. the financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
This declaration is signed in accordance with a resolution of the Board of Directors pursuant to S.295 (5) of the Corporations
Act 2001.
Alex Rovira
Managing Director
Dated this 29th day of September, 2023
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Brightstar Resources Limited (the “Company”) and its
controlled entities (the “Group”), which comprises the consolidated statement of financial
position as at 30 June 2023, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(a)
(b)
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of
its financial performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the Group in
accordance with the auditor independence requirements of the Corporations Act 2001 and the
ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (including Independence Standards) (“the Code”)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our
other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of the Group, would be in the same terms if given to the directors
as at the time of this auditor’s report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(b) in the financial report for the year ended 30 June 2023 which
indicates that the Group recorded a net profit of $1,944,366 (2022: loss of $3,950,250),
reported net cash used in operating activities $798,237 (2022: outflows of 1,391,658) and as
at that date had cash and cash equivalents of $425,707 (2022: $1,601,324). These
conditions, along with other matters as set forth in Note 1(b), indicate the existence of a
material uncertainty that may cast significant doubt about the Group’s ability to continue as a
going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
61
Pitcher Partners BA&A Pty LtdAn independent Western Australian Company ABN 76 601 361 095.Level 11, 12-14 The Esplanade, Perth WA 6000Registered Audit Company Number 467435.Liability limited by a scheme under Professional Standards Legislation.Adelaide Brisbane Melbourne Newcastle Perth SydneyPitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
Key Audit Matter
How our audit addressed the key audit
matter
Deferred exploration and evaluation expenditure
Refer to Note 1(f), 1(k) and 11 to the financial
report.
As at 30 June 2023, the Group held capitalised
exploration and evaluation expenditure of
$38,007,360.
The carrying value of deferred exploration and
evaluation expenditure is assessed for impairment
by the Group when facts and circumstances
indicate that the capitalised exploration and
evaluation expenditure may exceed its recoverable
amount.
The determination as to whether there are any
indicators to require the deferred exploration and
evaluation expenditure to be assessed for
impairment involves a number of judgements
including but not limited to:
• Whether the Group has tenure of the relevant
area of interest;
• Whether the Group has sufficient funds to meet
the relevant area of interest minimum
expenditure requirements; and
• Whether there is sufficient information for a
decision to be made that the relevant area of
interest is not commercially viable.
During the year, the Group determined that there
had been no indicators of impairment other than
those disclosed within note 11 to the financial
report.
Given the size of the balance and the judgemental
nature of the impairment indicator assessments
associated with exploration and evaluation assets,
we consider this is a key audit matter.
Our procedures included, amongst others:
Obtaining an understating of and evaluating
the design and implementation of the relevant
processes and controls associated with the
capitalisation of exploration and evaluation
expenditure, and those associated with the
assessment of impairment indicators.
Examining the Group’s right to explore in the
relevant area of interest, which included
obtaining and assessing supporting
documentation. We also considered the
status of the exploration licences as it related
to tenure.
Considering the Group’s intention to carry out
significant exploration and evaluation activity
in the relevant area of interest, including an
assessment of the Group’s cash-flow forecast
models, discussions with senior management
and directors as to the intentions and strategy
of the Group.
Testing a sample of transactions by sighting
evidence of signed contracts, related invoices
and comparing the amount recognised as
deferred exploration and evaluation assets is in
accordance with AASB 6.
Reviewing management’s evaluation and
judgement as to whether the exploration
activities within each relevant area of interest
have reached a stage where the commercial
viability of extracting the resource could be
determined.
Assessing the Group’s accounting policy as set
out within Note 1(f) and 1(k) for compliance with
the requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources.
Assessing the adequacy of the disclosures
included within the financial report.
62
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
Share-based payments
Refer to Note 1(f), 18 and 19 to the financial report.
During the year ended 30 June 2023, share-based
payments represent $1,103,121 of the Group’s
expenditure. Share-based payments must be recorded
at fair value of the service provided, or in the absence
of such, at the fair value of the underlying equity
instrument granted.
Under Australian Accounting Standards, equity settled
awards are measured at fair value on the measurement
date taking into consideration the probability of the
vesting conditions (if any) attached. This amount is
recognised as an expense either immediately if there
are no vesting conditions, or over the vesting period if
there are vesting conditions.
In calculating the fair value of the underlying equity
instrument there are key judgements that management
must make, including but not limited to:
• Estimating the likelihood that the equity instrument
will vest;
• Estimating expected future share price volatility;
• Estimating expected dividend yield; and
• Risk-free rate of interest.
Due to the significance to the Group’s financial report
and the level of judgment involved in determining the
fair value of the underlying equity instrument granted,
we consider the Group’s calculation of the share-based
payments expense to be a key audit matter.
Asset Acquisition
Refer to Note 1(f) and 12 to the financial report.
On 26 May 2023, the Group acquired 100% of the issued
share capital of Kingwest Resources Ltd
(the
“Acquisition”).
Under the terms of the Acquisition, 741,386,387 shares
and 173,511,384 options in the Company were issued as
purchase consideration.
Given the consideration transferred for the assets
acquired was settled via issuance of shares and options,
the Group was required to apply AASB 2 Share-based
Payments for recognition of the equity-settled share-
based payments.
The fair value of the consideration transferred by the
Group was $23,902,420
in
acquisition costs) to acquire 100% of the share capital of
Kingwest Resources Ltd.
Accounting for the Acquisition under AASB 3 Business
Combinations (“AASB 3”) as a business combination or
under alternative Australian Accounting Standards as
an asset acquisition requires significant judgment in
determining key assumptions and estimates.
(including $544,038
63
Our procedures included, amongst others:
Obtaining an understanding of and evaluating the
design and implementation of the processes and
controls associated with the preparation of the
valuation model used to assess the fair value of
the underlying equity instrument granted.
Assessing the key judgements used in the
Group’s calculation including the share price of the
underlying equity instrument including but not
limited to:
• Estimating the likelihood that the equity
instruments will vest;
• Estimating expected future share price
volatility;
• Estimating expected dividend yield; and
• Risk-free rate of interest.
Assessing the Group’s accounting policy as set out
within Note 1(e)
the
requirements of AASB 2 Share-based Payments.
Assessing the adequacy of the disclosures
included within the financial report.
for consistent with
terms and
Our procedures included, amongst others:
Obtaining an understanding of the design and
implementation of the relevant controls associated
with the accounting for the Acquisition.
Reading the Acquisition agreements to understand
the structure, key
the nature of
consideration. Using this information, we evaluated
the accounting treatment of the Acquisition by
analysing conclusions reached by the Group in
comparison to Australian Accounting Standards.
Critically evaluating the Group’s determination of
the assets and liabilities acquired in the Acquisition.
Checking the mathematical accuracy of the
calculations performed for the Acquisition.
Assessing the key judgements used in the
Group’s calculation for the consideration
transferred via the issue of shares and options to
ensure it is consistent with the requirements of
AASB 2 Share-Based Payments
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
These include, but are not limited to:
• Whether or not the Acquisition met the definition of
a business under AASB 3;
• Determining the fair value of the consideration
transferred; and
• Determining the fair value of assets acquired and
any liabilities assumed as part of the Acquisition.
Management has determined that the Acquisition does
not meet the definition of a business under AASB 3,
and has therefore treated the Acquisition as an
acquisition of assets.
Due to the significance to the Group’s financial report
and the level of judgment involved in the accounting for
the Acquisition, we consider this to be a key audit
matter.
Rehabilitation provision
Refer to Note 1(f), 1(r) and 15 to the financial report.
The Group is liable to rehabilitate the environment
disturbed by the historical operations. Rehabilitation
activities are governed by a combination of legislative
and licence requirements.
At 30 June 2023, the consolidated statement of
financial position included a provision for such
obligations of $2,926,920.
This was a key audit matter given the determination of
this provision requires evaluating the key assumptions
used by management and judgement in the
assessment of the nature and extent of future works to
be performed, the future cost of performing the works,
the timing of when the rehabilitation will take place and
the economic assumptions such as the discount and
inflation rates applied to future cash outflows
associated with rehabilitation activities to bring them to
their present value.
Assessing the Group’s disclosures within the
financial report and the appropriateness, including
consistency with the assumptions and judgements
made by management.
Our procedures included, amongst others:
Obtaining an understanding and evaluating the
design and implementation of the relevant controls
associated with the estimation of costs and other
inputs utilised within the rehabilitation estimate
model.
Obtaining the Group’s assessment of its
obligations to rehabilitate disturbed areas and the
estimated future cost of that work, which forms the
basis for the rehabilitation provision calculations.
Evaluating and testing key assumptions including
economic assumptions through the performance
of the following procedures:
•
•
•
considering the appropriateness of the
qualifications and experience of the
management consultant appointed as the
preparer and an expert in his field
examining supporting information for
significant changes in future costs estimates
from the prior year
considering the appropriateness of the
discount rate and inflation rates applied to
future cash outflows used in calculating the
provision
Assessing the adequacy of the disclosures
included in the financial report.
Treatment and impact of the Debt and Equity
Compromise Agreement Extinguishment
Refer to Note 2(a) and 16 to the financial report.
On 18 November 2020 the Group completed a Debt
and Equity Compromise Agreement (“DECA”), which
included a deferred payment of $5,400,000 to be paid
Our procedures included, amongst others:
Obtaining an understanding and evaluating the
design and implementation of the relevant controls
64
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
in cash or shares, at the Company’s election, by 10
August 2023.
On 18 October 2022, the $5,400,000 debt was fully
extinguished in exchange for the grant of a 1.5% net
smelter royalty (“NSR”) royalty over six tenements. The
arrangement was approved by shareholders on 17
October 2022.
No value has been placed on the NSR, as the Group
has no plans to mine the six tenements at this time. As
no value has been placed on the NSR, a $4,437,667
gain on extinguishment of debt has been recognised
within the Consolidated Statement of Profit and Loss
and Other Comprehensive Income for the year ended
30 June 2023 being the net carrying value at the time of
the extinguishment.
Given the magnitude and one-off nature associated
with the extinguishment of the DECA, we consider this
is a key audit matter.
Other Information
associated with the accounting treatment for the
extinguishment of the DECA.
Recalculating the gain on extinguishment of the
DECA.
Examining and reviewing the relevant agreements
of the DECA to obtain an understanding of its key
terms.
Reviewing and testing the accounting entries
recorded in relation to the gain on extinguishment
of the DECA, including assessing if these are
consistent with the relevant agreements and with
the requirements of AASB 132: Financial
Instruments: Presentation and AASB 9: Financial
Instruments.
Assessing the adequacy of the disclosures
included in the financial report.
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2023 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
65
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business activities within the Group to express an
opinion on the financial report. We are responsible for the direction, supervision and performance
of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included the directors’ report for the year ended 30 June
2023. In our opinion, the Remuneration Report of Brightstar Resources Limited, for the year ended 30
June 2023, complies with section 300A of the Corporations Act 2001.
66
BRIGHTSTAR RESOURCES LIMITED
ABN 44 100 727 491
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BRIGHTSTAR RESOURCES LIMITED
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
PITCHER PARTNERS BA&A PTY LTD
PAUL MULLIGAN
Executive Director
Perth, 29 September 2023
67
Brightstar Resources Limited
CORPORATE GOVERNANCE STATEMENT
-68-
The Company’s charters, policies and procedures are regularly reviewed and updated to comply with law and best practice.
These charters and policies as well as the Company’s Corporate Governance Statement can be viewed on the Company’s
website located at www.brightstarresources.com.au. The Company is committed to applying the ASX Corporate
Governance Council’s Corporate Governance Principles (4th Edition) (ASX Principles and Recommendations) and the
Corporate Governance Statement discloses the extent to which the entity has followed the recommendations set by the
ASX Corporate Governance Council during the financial year ended 30 June 2023.
ASX ADDITIONAL INFORMATION
-69-
Additional information required by the Australian Stock Exchange Limited and not disclosed elsewhere in this report is set
out below. This information is effective as at 27 September 2023.
Brightstar Resources Limited
Distribution of Shares
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 over
Rounding Total
Number of Holders
Securities Held
185
220
300
1,563
1,385
3,653
23,913
672,765
2,419,846
66,969,649
1,813,929,041
1,884,015,214
There are 1,704 shareholders holding unmarketable parcels represented by 28,415,429 shares.
Top 20 Largest Shareholders
Shareholder
Ms Sandra Wheeler
Mr Yongji Duan
Delphi Unternehmensberatung Aktiengesellschaft
Citicorp Nominees Pty Limited
Chen Yingliu
Stone Resources (HK) Limited
Mr Richard Arthur Lockwood
Chetan Enterprises Pty Ltd
Delphi Unternehmensberatung Aktiengesellschaft
Certane Ct Pty Ltd
HSBC Custody Nominees (Australia) Limited
Las Olas Investments Pty Ltd
Rec (WA) Pty Ltd
Jeff Towler Building Pty Ltd
Mrs Christabel Jayne Brand
Estate Late Yong Han
J P Morgan Nominees Australia Pty Limited
Mr Timothy Stewart Campbell
Mr Lieven Bert Frans Bouckaert + Mrs Priscilla Lee Bouckaert
Sol Sal Investments Pty Ltd
Total Top 20 Holders
Total Remaining Holders
Total Ordinary Shares on Issue
Substantial Shareholders
Shares Held
% of Issued Capital
75,265,010
37,043,489
36,431,819
30,316,312
30,303,030
29,636,727
29,246,331
22,666,667
22,000,000
20,364,954
19,719,027
19,500,000
15,263,627
14,605,263
14,100,000
13,908,219
13,722,401
13,157,895
13,000,000
12,947,368
3.99
1.97
1.93
1.61
1.61
1.57
1.55
1.20
1.17
1.08
1.05
1.04
0.81
0.78
0.75
0.74
0.73
0.70
0.69
0.69
483,198,139
1,400,817,075
1,884,015,214
25.65
74.35
100.00
There is no current shareholder who owns 5% or more of the voting shares in the Company.
-70-
ASX ADDITIONAL INFORMATION (Continued)
Brightstar Resources Limited
Voting Rights
One vote for each ordinary share held in accordance with the Company’s Memorandum and Articles of Association.
Unlisted options do not carry any voting rights.
On-Market Buy-Back
There is no current on-market buy-back.
Restricted Securities
There are no restricted securities.
Unquoted Securities
Type of Securities
Date of Expiry
Exercise Price
Number of Holders Number of Holders
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
15 September 2023
30 December 2023
31 December 2023
31 December 2023
31 December 2023
12 February 2024
29 February 2024
22 June 2024
15 September 2024
7 October 2024
21 October 2024
1 December 2024
31 December 2024
15 February 2025
28 April 2025
16 January 2026
16 January 2026
30 November 2026
4 August 2025
7 July 2026
7 July 2026
Performance Rights
31 March 2026
$0.068
$0.057
$0.060
$0.080
$0.100
$0.100
$0.038
$0.045
$0.065
$0.106
$0.076
$0.050
$0.050
$0.108
$0.095
$0.023
$0.038
$0.000
$0.020
$0.020
$0.030
$0.000
2,960,526
59,243,413
4,000,000
4,000,000
4,000,000
1,000,000
50,991,656
5,000,000
16,447,368
7,815,789
21,052,631
2,200,000
20,000,000
4,473,685
3,289,474
3,289,474
3,947,368
10,000,000
40,000,000
30,000,000
30,000,000
80,000,000
3
87
1
1
1
1
209
4
3
10
3
2
2
5
1
1
1
1
4
2
2
1
-71-
ASX ADDITIONAL INFORMATION (Continued)
Tenement Schedule as at 27 September 2023
Brightstar Resources Limited
LAVERTON GOLD PROJECT
Project Area
Tenement ID
E38/2411
E38/3034
E38/3279
E38/3293
E38/3331
E38/3438
E38/3500
E38/3504
M38/1056
M38/1057
M38/1058
M38/241
M38/549
M38/9
M38/968
South Laverton
M38/984
P38/4377
P38/4385
P38/4431
P38/4432
P38/4433
P38/4444
P38/4445
P38/4446
P38/4447
P38/4448
P38/4449
P38/4450
P38/4508
P38/4545
P38/4546
E38/2452
E38/2894
E38/3198
E38/3434
M38/346
M38/917
M38/918
P38/4108
E38/3673
M38/94
M38/95
M38/314
M38/381
North Laverton
Laverton
Hawk’s Nest
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Registered Holder / Applicant
Interest / Ownership
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-72-
ASX ADDITIONAL INFORMATION (Continued)
Tenement Schedule as at 27 September 2023
Brightstar Resources Limited
Project Area
Tenement ID
Miscellaneous
Leases
L38/100
L38/123
L38/154
L38/168
L38/169
MENZIES GOLD PROJECT
Project Area
Tenement ID
E29/984
L29/42
L29/44
L29/43
M29/14
M29/88
M29/153
M29/154
M29/184
M29/212
M29/410
P29/2346
P29/2450
P29/2578
P29/2579
P29/2580
P29/2581
P29/2582
P29/2583
P29/2584
P29/2585
E29/966
E29/996
E29/1062
P29/2380
P29/2381
P29/2412
P29/2413
P29/2588
P29/2675
P29/2676
P29/2467
P29/2468
P29/2530
P29/2531
P29/2532
P29/2533
Menzies
Goongarrie
Status
Granted
Granted
Granted
Granted
Granted
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Pending
Pending
Granted
Granted
Granted
Granted
Granted
Granted
Registered Holder / Applicant
Interest / Ownership
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
100%
100%
100%
100%
100%
Registered Holder / Applicant
Interest / Ownership
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Menzies Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
Goongarrie Operational & Mining Pty Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Brightstar Resources Limited
-73-
ASX ADDITIONAL INFORMATION (Continued)
TENEMENTS SUBJECT TO TRANSFER
Refer to announcement dated 17 July 2023 for more information relating to the tenement swap with Ardea
Resources Ltd (ASX:ARL)
Part A: Ardea Resources – Transferred Tenements (Brightstar Acquisition)
Tenement
Registered holder/ applicant
(% interest)
Date of Grant
Date of
Expiry
Interest being acquired by
Brightstar
P29/2651
P29/2650
P29/2649
P29/2538
P29/2539
P29/2511
P29/2512
P29/2513
P29/2514
P29/2515
E29/981
Kalgoorlie Nickel Pty Ltd
26/04/2022
25/04/2026
All rights.
Kalgoorlie Nickel Pty Ltd
26/04/2022
25/04/2026
All rights.
Kalgoorlie Nickel Pty Ltd
26/04/2022
25/04/2026
All rights.
Kalgoorlie Nickel Pty Ltd
25/02/2020
24/02/2024
All rights.
Kalgoorlie Nickel Pty Ltd
25/02/2020
24/02/2024
All rights.
Kalgoorlie Nickel Pty Ltd
03/07/2019
02/07/2023
All rights.
Kalgoorlie Nickel Pty Ltd
03/07/2019
02/07/2023
All rights.
Kalgoorlie Nickel Pty Ltd
03/07/2019
02/07/2023
All rights.
Kalgoorlie Nickel Pty Ltd
03/07/2019
02/07/2023
All rights.
Kalgoorlie Nickel Pty Ltd
03/07/2019
02/07/2023
All rights.
Kalgoorlie Nickel Pty Ltd
26/04/2017
25/04/2027
Gold Rights and Lithium Rights
only.
Part B: Brightstar Resources – Transferred Tenements (Ardea Acquisition)
Tenement
P29/2532
P29/2530
P29/2467
Registered holder/ applicant
(% interest)
Date of Grant
Date of
Expiry
Interest being sold
Goongarrie Operational and
Mining Pty Ltd
Goongarrie Operational and
Mining Pty Ltd
Goongarrie Operational and
Mining Pty Ltd
30/07/2020
29/07/2024
All rights.
30/07/2020
29/07/2024
All rights.
21/09/2020
20/09/2024
P29/2468
Goongarrie Operational and
Mining Pty Ltd
21/09/2020
20/09/2024
P29/2380
Goongarrie Operational and
Mining Pty Ltd
05/02/2019
04/02/2027
All rights other than the Gold
Rights which are retained by
Goongarrie.
All rights other than the Gold
Rights which are retained by
Goongarrie.
All rights other than the Gold
Rights which are retained by
Goongarrie.
E29/984
E29/1062
Menzies Operational and
Mining Pty Ltd
Goongarrie Operational and
Mining Pty Ltd
24/02/2017
23/02/2027
All rights.
13/03/2020
13/03/2025
Infrastructure Tenement Rights
only.