Golden State Resources Ltd yesterday lodged a prospectus to raise up to $20 million to fund the acquisition of the Golden Eagle Prospect.
The offer of 100 million shares at 20 cents per share is divded between a Priority Offer of 25 million shares for existing shareholders and a Public Offer of 75 million shares.
The Golden Eagle Prospect is located in the Paradox Basin, Utah in the United States.
The proceeds of the capital raising will mainly be used to acquire the prospect and to fund the costs of a two well drilling program on the prospect.
The proceeds will also be used to fund Golden State's pursuit of other oil and gas opportunities, meet expenses of the offer of approximately $1.2 million and provide working capital.
In September, Golden State announced its intention to seek shareholder approval to change its activities to an oil and gas exploration and production company and to proceed with the Golden Eagle farm-in.
A shareholder meeting to consider and approve its change of activities, the issue of the prospectus and its undertaking of a 3 to 1 consolidation of its shares and options will take place later this month.
