West Perth-based gold explorer Goldstar Resources NL will place 9.5 million shares to investors, raising $4.1 million to help it complete a feasibility study on its Eureka project.
The full text of a company announcement is pasted below
Goldstar Resources NL (ASX: GDR) is pleased to advise that, with the assistance of Australian stockbroking firm Tolhurst Limited, it has reached agreement to place 9,535,000 shares at an issue price of 43 cents per share to
exempt investors pursuant to the "excluded offer" provisions (section 708) of the Corporations Act to raise A$4.1 million.
The share placement will increase Goldstar's available cash reserves to in excess of A$9 million.
Use of Funds
The funds raised from the share placement combined with the company's existing funds, will be used towards:
- completion of the Feasibility Study for the Eureka Project;
- ongoing drilling and general exploration activities; and
- general working capital requirements.
In accordance with ASX Listing Rule 7.1, the placement can be completed within Goldstar's existing 15% placement capacity and does not require shareholder approval. The placement shares will rank pari passu with
Goldstar's existing ordinary shares. Following completion of the share placement, Goldstar will have a total of approximately 137.7 million shares on issue
