Goldstar’s landmark capital raising

18 December 2006 | 10:12 Code : 12131 Geoscience events
A fully underwritten $3 million Share Purchase Plan for existing shareholders....
Goldstar Resources NL has completed the book-build for a heavily oversubscribed $10 million share placement, managed by global investment bank, Royal Bank of Canada (RBC).
A fully underwritten $3 million Share Purchase Plan for existing shareholders is intended to be announced which, together with the share placement, amounts to a total capital raising of $13 million.This landmark capital raising – which will result in the introduction of a number of strategic new Australian and International institutional investors to Goldstar’s share register – positions the company to accelerate its progress towards gold production at the 100%-owned Walhalla Gold Project in eastern Victoria. The $13 million capital raising represents a key step in Goldstar’s continued growth strategy as an emerging mid-tier Victorian gold company. The raising will ensure that the company is fully funded through to commencement of development of the Eureka Project in 2007.Following completion of this capital raising, the company will have some $17 million in cash. The funds raised will be utilised to continue 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 (RCL) of mineralisation, regional structural trends and key targets that have been developed and prioritised on the company’s leases over the last 6 months.In addition, Goldstar has announced that its major shareholder, Kingsgate Consolidated Ltd, has reached agreement to divest its entire 19.7% holding in the company (20.7 million shares) to an investor group led by RPG Partners.

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