Cazaly to Earn Up to 80% of Goongarrie Project with $3M Exploration Spend

Strategic Partnership to Accelerate Exploration

Brightstar Resources Limited (ASX: BTR) has formalized a significant partnership with Cazaly Resources Limited (ASX: CAZ) through a binding Term Sheet that grants Cazaly an option to earn up to an 80% interest in the Goongarrie Gold Project. This earn-in agreement requires Cazaly to fund up to $3 million in exploration expenditure across staged periods, effectively transferring the exploration risk while preserving Brightstar’s exposure to potential upside.

The staged earn-in structure is designed to progressively increase Cazaly’s stake: an initial $1 million spend over 12 months secures 25%, followed by two further $1 million tranches over 18-month periods each, culminating in an 80% interest. Upon each stage’s completion, a joint venture will be established, allowing both parties to collaborate on further exploration and potential development.

Portfolio Streamlining and Operational Focus

This arrangement aligns with Brightstar’s strategic intent to streamline its portfolio and concentrate resources on advancing operational and development activities. The company is currently progressing Definitive Feasibility Study (DFS) workstreams and mining operations at the Second Fortune underground mine, complemented by start-up activities at the Fish underground project.

Brightstar’s Managing Director, Alex Rovira, emphasized the value of partnering with a quality explorer like Cazaly to unlock the Goongarrie area’s potential, while Brightstar maintains exposure through the joint venture. Rovira highlighted the company’s ongoing focus on the Menzies area, particularly the Lady Shenton System, where a large open pit mining complex is being defined as part of the DFS. Other deposits such as Yunndaga and the Link Zone remain under evaluation for future mining expansion.

Geographic and Resource Context

The Goongarrie Gold Project lies approximately 30 kilometres south of Menzies, accessible via the sealed Goldfields Highway, positioning it strategically within Western Australia’s prolific Eastern Goldfields region. Brightstar’s broader portfolio includes significant mineral resources across the Sandstone, Menzies, and Laverton hubs, with a combined JORC Mineral Resource exceeding 3 million ounces of gold at an average grade of 1.5 g/t Au.

Brightstar’s approach prioritizes projects with granted mining leases and near-term commercialisation pathways, reflecting a disciplined focus on assets that can contribute to production growth and shareholder value. The partnership with Cazaly thus represents a pragmatic step to unlock value from non-core assets while concentrating capital and management attention on core development projects.

Looking Ahead

The earn-in option is exercisable within 90 days, subject to due diligence and regulatory conditions, including tenement status and assignment of rights. Should Cazaly proceed, the joint venture will mark a new phase of collaborative exploration at Goongarrie, potentially adding a valuable asset to Brightstar’s portfolio without diluting its focus on advancing existing operations.

Investors will be watching closely as Cazaly undertakes its due diligence and initial exploration activities, which will provide early indicators of the project’s prospectivity and the partnership’s potential to deliver incremental value.