Goldstone Resources Ltd Gold Loan Update and Exercise of Warrants (6065Q)
March 01 2021 - 01:00AM
UK Regulatory
TIDMGRL
RNS Number : 6065Q
Goldstone Resources Ltd
01 March 2021
1 March 2021
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Gold Loan Update and Exercise of Warrants
GoldStone Resources Limited (AIM: GRL), the AIM quoted gold
exploration and development company focused on bringing the Homase
South Pit within its Akrokeri-Homase Gold Project ("AKHM") into
production, is pleased to announce that, further to its
announcement of 18 December 2020, it has agreed with Asian
Investment Management Services Ltd ("AIMS") a further deferment of
the gold loan interest payment to 30 June 2021 (previously deferred
to 31 March 2021) and the exercise of warrants by AIMS over
40,000,000 new ordinary shares of 1 penny each in the capital of
the Company ("Ordinary Shares") at a price of 3 pence per Ordinary
Share (the "Warrant Exercise"), for consideration of 2,000,000 new
Ordinary Shares being issued to AIMS (the "Deferment Agreement").
The Warrant Exercise provides GBP1,200,000 of additional funding to
the Company.
The Company remains on track to achieve first gold pour within
two months of the award of the Environmental Permit on 11 February
2021, and the Deferment Agreement provides additional time and
working capital to enable to the Company to meet the gold loan
interest payment and commence revenue generation. Following the
award of the Environmental Permit, the proceeds of the Warrant
Exercise will be used to meet ongoing costs associated with the
ramp up of operations at AKHM.
The 42,000,000 new Ordinary Shares to be issued to AIMS pursuant
to the Deferment Agreement will rank pari passu with the existing
Ordinary Shares and application will be made for the New Ordinary
Shares to be admitted to trading on AIM ("Admission"). It is
expected that Admission will become effective and dealings in the
new Ordinary Shares will commence at 8.00 a.m. on 5 March 2021.
On Admission, AIMS will hold 72,000,000 Ordinary Shares in the
Company, representing approximately 22.11 per cent. of the
Company's then issued share capital and will also hold a further
50,000,000 warrants to subscribe for new Ordinary Shares at a price
of 3 pence per share.
Total Voting Rights
Upon Admission, the Company's issued ordinary share capital will
consist of 325,585,967 Ordinary Shares with one voting right each.
The Company does not hold any Ordinary Shares in treasury.
Therefore, the total number of Ordinary Shares and voting rights in
the Company will be 325,585,967. With effect from Admission, this
figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
Related Party Transaction
AIMS is currently interested in approximately 10.58 per cent. of
the Company's issued share capital and is therefore a substantial
shareholder and a related party of the Company as defined in the
AIM Rules for Companies ("AIM Rules").
Accordingly, entering into the Deferment Agreement, as detailed
above, is deemed to be a related party transaction pursuant to Rule
13 of the AIM Rules and it is noted that the board of Goldstone
considers, having consulted with the Company's nominated adviser,
Strand Hanson Limited, that the terms and conditions of the
Deferment Agreement are fair and reasonable insofar as the
shareholders of the Company are concerned.
For further information, please contact:
GoldStone Resources Limited
Bill Trew / 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
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted gold
exploration and development company.
The Company is focused on developing the Akrokeri-Homase project
in south-western Ghana, which hosts a JORC Code compliant 602,000
oz 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 Akrokeri 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 52,500 oz gold at 2.5 g/t recovered. 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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