REG - Goldstone Resources - Corporate Update

Goldstone ResourcesAnnouncement

21/05/2024 11:30

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RNS Number : 3025P  Goldstone Resources Ltd  21 May 2024

21 May 2024

 

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

 

Corporate Update

 

GoldStone Resources Limited (AIM: GRL) notes that, further to its announcement
of 13 May 2024, a subscriber to the Subscription announced on 10 April 2023
has not met its obligation to provide funds. The Company has, to date,
received £634,000 in funds due pursuant to the Subscription. Asian Investment
Services Limited ("AIMSL"), a substantial shareholder in the Company and the
provider of the Gold Loan, has agreed to subscribe for £200,000 of
Subscription Shares for cash pursuant to the Subscription (the "AIMSL
Subscription") to provide total gross proceeds of £834,000 (the "Fundraise").
The Board believes that the Fundraise, in conjunction with the Group's ongoing
revenues and creditor arrangements, provides sufficient working capital for
continued operations, and accordingly intends to close the Fundraise on
receipt of funds from AIMSL, expected by Thursday, 23 May 2024, subject to
which Admission is expected to take place on 24 May 2024.

 

The Company notes that it has produced 1,153oz, averaging 230 oz of gold per
month, from the Homase Mime in 2024 to date, and the Board believes the
Fundraise provides sufficient working capital to continue production at at
least this rate over the coming months. The Company may, in due course, seek
to raise additional capital to support increasing its rate of production, to
support additional exploration activities to increase the Company's resource
base and to reduce creditors.

 

The Company will provide a further update on receipt of funds from AIMSL with
respect to timing for Admission, resultant total voting rights, and
restoration of the Company's Ordinary Shares to trading on AIM.

 

AIMSL Subscription and Related Party Transaction

 

The Company notes that, in conjunction with the AIMSL Subscription, the number
of shares to be issued on Admission pursuant to the conversion of interest
accrued on the Gold Loan pursuant to the Amendment Agreement will be reduced
to 52,800,000 Conversion Shares, representing approximately 300 oz of the
578.4 oz of gold interest accrued on the Gold Loan to 31 December 2023.  This
is in order to ensure AIMSL's interest in the Company remains below 30% of the
Company's issued share capital on Admission. The balance of the Conversion
Shares will be issued to AIMSL in due course on the same terms at such time as
this can be achieved without increasing AIMSL's interest in the Company's
Ordinary Shares above 30%.

 

It is also noted the AIMS intends to appoint a nominee Non-Executive Director
to the Board of the Company in due course, as it is entitled to do pursuant to
the Gold Loan agreement.

 

AIMSL, currently holds 122,000,000 Ordinary Shares in the Company.
Accordingly, the AIMSL Subscription, as detailed above, constitutes a related
party transaction pursuant to Rule 13 of the AIM Rules. The Board of Goldstone
considers, having consulted with the Company's nominated adviser, Strand
Hanson Limited, that the terms and conditions of the AIMSL Subscription are
fair and reasonable insofar as the shareholders of the Company are concerned.

 

 

For further information, please contact:

 

 GoldStone Resources Limited
 Emma Priestley                      Tel: +44 (0)1534 487 757

 Strand Hanson Limited
 James Dance / James Bellman         Tel: +44 (0)20 7409 3494

 S. P. Angel Corporate Finance LLP
 Ewan Leggat / Charlie Bouverat      Tel: +44 (0)20 3470 0501
                                     Tel: +44 (0)20 7236 1177

 St Brides Partners Ltd

 Susie Geliher

 

 

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted mining and development
company with projects in Ghana that range from grassroots exploration to
production.

 

The Company is focused on developing the Akrokeri-Homase project in
south-western Ghana, which hosts a JORC Code compliant 602,000oz gold resource
at an average grade of 1.77 g/t.  The existing resource is confined to a 4km
zone of the Homase Trend, including Homase North, Homase Pit and Homase South.

 

The project hosts two former mines, the Akrokerri Ashanti Mine Ltd, which
produced 75,000 oz gold at 24 g/t recovered grade in the early 1900s, and the
Homase Pit which AngloGold Ashanti developed in 2002/03 producing 52,000 oz
gold at 2.5 g/t recovered.  Production is currently focussed on the Homase
Mine however it is the Company's intention to build a portfolio of
high-quality gold projects in Ghana, with a particular focus on the highly
prospective Ashanti Gold Belt.

 

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