Goldstar set for $7m rights issue

West Perth-based Goldstar Resources NL is set to go ahead with a fully underwritten $7 million non-renouceable rights issue that will underpin study work into its gold projects in Victoria.

The company said today it had received commitment from an unnamed company associated with a major shareholder, agreeing to underwrite the issue.

That agreement is subject to completion of due diligence, finalisation of a prospectus by August 15 and no material adverse change in circumstances.

Funds raised from the issue will predominately go towards the completion of the current feasibility study on the Tubal Cain and Eureka gold projects.

Shares in Goldstar were unchanged at 13.5 cents at 11:24 AEST.