Andrew King's Goldstar Resources has been doing its bit to fuel...

Andrew King's Goldstar Resources has been doing its bit to fuel the year-end flourish.

Moves on Friday in the stock gave the impression that, after showing lots of promise on the exploration front, Goldstar's Walhalla gold project has finally secured market recognition for its development potential.

But Sydney-based Thai gold producer Kingsgate is not waiting around. It has sold its 19.7 per cent stake to an investor group led by RPG Partners, taking a nice profit but probably wishing it had moved to control when it had the chance at much lower share price levels.

At the same time, Goldstar has taken advantage of its recent share price strength to pull in $10 million from an over-subscribed share placement at 65¢ each.

London-based RPG is a new player on the Australian mining scene. It has investments in mining, power and logistics in Europe and apparently has a focus on companies either in or near production.

Total cash available to return the historic Walhalla goldfield to production will reach $17 million after another $3 million is pulled in from an underwritten share purchase plan ($5000 a shareholder) at the same price.

Goldstar's last sale was at 75¢, making it the best performed of the Victorian gold stocks for the year.

http://www.theage.com.au/news/business/gindalbie-promise-on-karara-ironclad/2006/12/10/1165685553657.html?page=2