24/01/2008 - 14:37

Golden State raises over $2m for oil & gas prospect

24/01/2008 - 14:37

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Golden State Resources Ltd has successfully raised $2.03 million via a share placement to mainly fund vendor payments for the Golden Eagle Oil & Gas Prospect in the United States.

Golden State Resources Ltd has successfully raised $2.03 million via a share placement to mainly fund vendor payments for the Golden Eagle Oil & Gas Prospect in the United States.

The Subiaco-based company issued 29 million shares at a price of 7 cents per share. Each share will have one free attaching listed option exercisable at 20 cents with an expiry date of June 30, 2009.

The issue of the shares is within the company's 15 per cent placement capacity and the issue of options is subject to the approval of Golden State Resources shareholders, to be sought at an extraordinary general meeting of shareholders to be announced shortly.

Golden State said the shares and options would be issued to various sophisticated investor clients of Cunningham Securities Pty Ltd of Perth, to which it will pay a commission of six per cent of total funds raised.

The proceeds of the share placement will be applied to the final vendor payment of US$624,912 ($714,841) due to Eclipse Exploration Inc on February 15, 2008, pursuant to the company's farm-in agreement for the Golden Eagle Oil & Gas Prospect, Grand County, Utah.

The balance will be used for working capital.

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