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https://www.afr. com/street-talk/brightstar-resources-alto-metals-set-to-merge-kick-off-20m-raise-20240731-p5jy0c

Brightstar Resources, Alto Metals agree to merge; kick off $20m raise
Sarah Thompson, Kanika Sood and Emma Rapaport

Jul 31, 2024 – 1.14pm


There’s never a dull moment in Australia’s listed gold sector.

Both companies’ shares were halted on Wednesday morning. Asineh Houspian
Street Talk understands the $71 million Brightstar Resources and the $24 million Alto Metals are set to merge in an all-scrip deal.
The shares will be exchanged on a one-for-four basis, giving Brightstar a circa 66.6 per cent ownership of the combined entity.

As part of the deal, Canaccord Genuity and Argonaut will seek to raise about $20 million from investors, sources said.
Alto’s Sandstone project in Western Australia has been producing gold since the 19th century and has a 17.6 million tonne mineral resource estimate at 1.5 grams per tonne.
It is next door to Westgold’s Big Bell mine and Ramelius’ Mount Magnet.
The small-cap had long been seen as a takeover target – the now $1.2 billion Westgold Resources held a 14 per cent stake in 2022, while China’s Shandong Goldsea Group Co tabled a bid in 2020.

Merger partner Brightstar is led by Alex Rovira, who was previously a banker at Canaccord. It is currently drilling at the Cork Tree Well deposit in WA’s Laverton.
Sources said the company has been hunting for acquisitions.

M&A gold

The tie-up comes as ASX-listed gold stocks remain a reliable source of M&A activity for bankers and investors, at a time when deals have dried up in lithium and nickel amid a slump in commodity prices.
Established gold players are being driven by a need to replace ageing mines, while juniors are exploring combinations to secure their future.

At the bigger end of the town, Westgold has acquired Toronto-listed Karora Resources – despite attempts from Ramelius Resources to kibosh the deal.
Earlier in the year, Red5 and Silver Lake agreed to a $2.2 billion merger.
Ramelius, for its part, has been scoping out targets. Last month, it raided WA explorer Spartan Resources’ register for a 17.94 per cent stake after an unsuccessful tilt at Karora.
It also approached Westgold to explore a merger that would have created a $3 billion gold miner.

Last year, Raleigh Finlayson-led gold miner Genesis Minerals bought St Barbara’s Leonora gold assets and raised $450 million. Eastern Goldfields miners and joint venture partners Pantoro Limited and Tulla Resources also merged and raised $75 million.