Goldstar
Resources NL (ASX: GDR)
ASX/MEDIA
RELEASE
29
JULY 2008
GOLDSTAR ANNOUNCES
PROPOSED RIGHTS ISSUE
Australian gold
company Goldstar Resources NL (ASX: GDR ? ?Goldstar?) is pleased to announce
its intention to finalise a fully underwritten non-renounceable rights issue to
underpin the completion of the current Feasibility Study on its 100%-owned
Tubal Cain and Eureka Gold Projects in Victoria and to fund other ongoing
corporate and operational commitments.
The documentation
for the proposed rights issue is nearly complete, with the proceeds of the
issue being approximately A$7 million.
Goldstar advises that
it has received a letter of commitment from a company associated with a major
shareholder stating that it will enter into an underwriting agreement for the
rights issue, subject to completion of due diligence, finalisation of a
Prospectus for the Rights Issue by 15 August 2008 and there being no material
adverse change in circumstances.
Details of the
non-renounceable rights issue, including a timetable and offer Prospectus, will
be released to the market shortly, once the underwriting agreement has been
completed and executed.
The Directors of
Goldstar believe that the proposed rights issue ? in conjunction with other
recently announced strategic changes including the restructure of its Board ?
will provide a strong foundation for the long-term growth of the Company and
its plans to advance the exploration and development of its assets in the
Walhalla Goldfield towards production.
- ENDS -
Released
by:
For further
information:
Nicholas
Read
Mr Gordon
Hill
Read
Corporate
Chairman
Telephone: (+61-8) 9388
1474
Goldstar Resources NL
www.readcorporate.com.au
Telephone:
(+61-8) 9321 1577
www.goldstarnl.com.au
READ CORPORATE
Public Relations
Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8)
9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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