Goldstone Resources Ltd Update on Unsecured Bond Notes (4861S)
March 17 2021 - 02:00AM
UK Regulatory
TIDMGRL
RNS Number : 4861S
Goldstone Resources Ltd
17 March 2021
17 March 2021
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Update on Unsecured Bond Notes
GoldStone Resources Limited (AIM: GRL), the West Africa focused
gold exploration and development company quoted on AIM, is pleased
to announce that, further to its announcement of 16 March 2020, it
has agreed to extend the initial term for 20 of the unsecured bonds
of US$50,000 each in issue (the "Bonds") to 15 June 2021 (the
"Extension"). The remaining six Bonds have been redeemed in full
through cash settlement. Paracale Gold Limited ("Paracale Gold")
and BCM Investments Limited ("BCM"), which each own six Bonds, have
agreed to the Extension.
The Extension of the initial period, which was originally 12
months, means that the Company does not need to issue the
additional 1,000,000 warrants, exercisable at 3 pence per share,
per outstanding Bond, which would otherwise be required if the
Bonds entered the second period. The remaining Bondholders retain
the flexibility to receive repayment of the Bonds in gold, at a
fixed price of US$1,450 per troy ounce, or in cash, or in new
ordinary shares, with the number of ordinary shares to be issued
based on the volume weighted average price of an ordinary share for
the 15 business days prior to the end of the Extension period.
All other terms of the outstanding Bonds, as announced 16 March
2020, remain unchanged and in full force and effect.
Related Party Transaction
Paracale Gold and BCM, which are currently interested in
approximately 22% and 15% of the Company's issued share capital
respectively, are each substantial shareholders of the Company (and
associated with Bill Trew and Angela List, directors of the
Company, respectively) and are therefore each a related party of
the Company as defined in the AIM Rules for Companies ("AIM
Rules").
Accordingly, in respect of the Bonds held by Paracale Gold and
BCM, the Extension, as detailed above, is deemed to be a related
party transaction pursuant to Rule 13 of the AIM Rules and the
independent directors, being Emma Priestley, Richard Wilkins and
Orrie Fenn, consider, having consulted with the Company's nominated
adviser, Strand Hanson Limited, that the terms of the Extension 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 Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted
exploration and development company with projects in Ghana that
range from grassroots exploration to development.
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 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. 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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