- Brightstar Resources (BTR), formerly, Stone Resources Australia, has released its cashflow report for December 2020
- The company burnt through $136,000 on operating activities with majority being put towards staff, admin and corporate costs
- This is considerably less than November’s outgoings, which allocated $752,000 towards a payment as part of a debt and equity compromise agreement
- At the start of December, Brightstar had around $504,000 in cash but capped it off with $359,000
- Ahead of the new year, Brightstar changed its name and rebranded to reflect its Brightstar Beta Project in WA
- Company shares are up a slight 2.67 per cent and are trading at 7.7 cents
Brightstar Resources (BTR), formerly, Stone Resources Australia, has released its cashflow report for December 2020.
For the month, the company burnt through $136,000 on operating activities with majority being put towards staff, admin and corporate costs.
Around $68,000 of this was allocated to debt towards the debt and equity compromise agreement (DECA) with Stone (HK) and Stone (Bermuda).
The DECA was part of the company’s recapitalisation plan and involved an initial payment of $6 million to Stone (HK) and a second payment of $5.4 million. However, the initial payment was changed to Stone (HK) receiving 719,000 of Regis Resources’ shares which Brightstar held.
The December outgoings were significantly lower than the previous month which saw $752,000 allocated towards the DECA payment.
At the start of the month, Brightstar had around $504,000 in cash and cash equivalents, but capped it off with $359,000.
It is estimated the miner has just 1.76 months worth of available funding. However, it claims it’s constantly reviewing its cashflow position and expects to continue operations and meet its objectives.
In December last year, Brightstar Resources announced it had officially changed its name from Stone Resources Australia following approval from shareholders in November.
The company said the change comes from its Brightstar Beta Project and processing plant in Western Australia’s internationally renowned gold province of Laverton.
“Brightstar is the name of our flagship project. It also symbolises leading our shareholders towards growth and prosperity. Our new ‘bright star’ logo includes a stylised gold pour, which reflects our ambitions for bringing the Brightstar plant into production,” Managing Director Bill Hobba said at the time.
By mid January, Brightstar expects its sub-audio magnetics (SAM) survey program will be completed. The survey began in December and is being conducted at the Cork Tree Well Project in the Laverton region. This work aims to identify more near-surface targets for future drilling.
Company shares are up a slight 2.67 per cent and are trading at 7.7 cents at 1:26 pm AEDT.