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Gold fever on the boards

THREE more gold exploration companies are set to start treading the Australian Stock Exchange boards in the next two months and many more are expected.

While the gold price has slipped a little in the past few weeks, stock market returns are such investors seem ready to put their money into more "prospective" stocks.

Analyst Peter Strachan said he expected there to be more gold exploration floats to come.

"Every geologist worth his salt will be knocking together a prospectus in his backyard," he said.

Goldstar Resources NL, Westcoast Mining Limited and Prosperity Resources Limited are the latest gold players and they aim to float on October 21, October 29 and November 18 respectively.

Goldstar plans to raise $6 million from an offer at 25 cents a share that is due to close on October 15.

It will use that money to delineate gold resources of more than one million ounces at the Walhalla Project in Victoria, confirm the potential for a 500,000 ounce gold resource at its Peak Hill Project, evaluate gold targets at the Millrose Project, implement exploration at the Top Camp Project and determine mineralised structures and resource potential it the Brankeet Project.

Both the Peak Hill and Millrose projects are in Western Australia. The Top Camp Project is near Conclurry in Queensland and Brankeet is in central Victoria.

Gordon Hill is the company’s non-executive chairman, Andrew King is managing director, Duncan Greenaway is its exploration director and company secretary and UK-based Eileen Carr is a non-executive director. Ian Pankhurst acts as an alternate director for Mr Greenaway.

Southern Cross Equities is acting as the sponsoring broker for the float, the independent geologist is Snowden Corporate Services, solicitors are Richard O’Shannassy & Co and Hardies Lawyers and Hall Chadwick are the independent accountants.

Westcoast plans to raise $5 million by offering 25 million shares at 20 cents a share to fund exploration, retire debt, cover issue expenses, cover for environmental bonds, pay acquisition costs and provide administration and additional working capital.

It has put together a series of tenements covering the entire Tuckabianna belt near Cue.

Former PricewaterhouseCoopers managing partner Asia Pacific is Westcoast’s chairman.

Michael Collings is its executive director and CEO. Ronald Thom, Michael Hardy and Stefan Saw are non-executive directors.

Hogan & Partners Stockbrokers are acting as sponsoring broker for the float.

Steinepreis Paganin are solicitors to the offer, PKF Chartered Accountants & Business Advisers acted as auditor while PKF Corporate Advisory Services is the offer’s independent accountant.

RSG Global provided independent geologist services for the prospectus and Marshall Michael Corporate Consultants acted as corporate adviser.

Prosperity Resources is offering 14 millions shares at 20 cents each to raise $2.8 million.

It plans to spend at least $1,225,000 on exploration, $260,000 on float costs and put a minimum $715,000 towards general working capital.

It has put together a series of tenements in the greenstone belt of the Murchison region in WA.

Richard Dawson is the company’s managing director and company secretary, David Holden is executive director and Robert Jones is non-executive director.

Sponsoring broker for the float is Findlay & Co Stockbroking.

The rest of the float advisory team is made up of WA Mining Titles acting as tenement consultant, Malcolm Castle as independent consultant, Steinepreis Paganin as solicitors, Stanton Partners Corporate as independent accountant and Stanton Partners as the auditor.

Interestingly, the three most recent WA stocks to list have had mixed fortunes.

Chameleon Mining listed on August 12 with an opening price of 20 cents. It is currently trading around 15 cents.

Berkeley Resources, which had its float stalled several times, finally debuted at 25 cents. It is now around the 30 cent mark.

Navigator Resources debuted at 23.5 cents on September 19 and is currently around 18 cents.

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