West Perth-based gold explorer Goldstar Resources NL has raised $3 million through a share purchase plan, which it will use to fast track its Eureka gold prospect towards early production.
West Perth-based gold explorer Goldstar Resources NL has raised $3 million through a share purchase plan, which it will use to fast track its Eureka gold prospect towards early production.
The full text of a company announcement is pasted below
Goldstar Resources NL is pleased to advise that the Share Purchase Plan which closed on 12 January 2007, has now been finalised -successfully raising $3 million following a strong response from existing shareholders.
The SPP, which was fully underwritten by Australian broking firm, Tolhurst Noall Limited, was designed to provide an opportunity for existing shareholders to participate in the capital raising at the same price as the $10 million institutional share placement concluded in December.
Goldstar shareholders subscribed for a total of approximately 2.1 million shares under the SPP, raising approximately $1.34 million. Under the underwriting agreement, Tolhurst placed a total of approximately 2.5 million shares with clients and sub-underwriters, raising a total of approximately $1.66 million. All shareholders who successfully applied for shares under the SPP will receive
their full entitlement on or about 25 January 2007. Following allotment of the shares issued pursuant to the SPP, Goldstar will have a total of 128,061,605 million shares on issue.
Together with the strongly oversubscribed $10 million institutional share placement completed before Christmas, this concludes a $13 million capital raising and increases the Company's available cash resources to approximately $17million, which will enable Goldstar to accelerate its 2007 work program at the Walhalla Gold Project in Victoria.
In particular, the funds raised will be utilised to fast track the Eureka Project towards early production and to commence scoping and bulk sampling studies on the Tubal Cain deposit. In addition, funds will be applied to drilling to confirm extensions to the Eureka and Tubal Cain dyke bulges, building further on the exploration success that has been achieved at both of these deposits over the past 12 months.
The funds will also enable Goldstar to accelerate regional drilling and exploration programs at Walhalla, including exploration focussing on other potential dyke bulges within the Ross Creek Line of mineralisation, regional structural trends and key targets that have been developed and prioritised on the Company's leases over the last 6 months.
The overall capital raising has resulted in the introduction of a number of strategic new Australian and International Institutional Investors to the Company, further strengthening the share register
The raising represents a further key step in Goldstar's continued growth strategy as an emerging mid-tier Victorian gold company. It will ensure that the Company is fully funded through to commencement of development of the key Eureka Project during 2007.
The Company thanks existing shareholders for their continued support and welcomes new shareholders to the register.
