REG - Goldstone Resources - Conditional Subscription and Debt Conversion

Goldstone ResourcesAnnouncement

24/10/2024 07:00

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RNS Number : 3893J  Goldstone Resources Ltd  24 October 2024

24 October 2024

 

GOLDSTONE RESOURCES LIMITED

("Goldstone" or the "Company")

 

Conditional Subscription of £175,000 and

Debt Conversion of US$300,000

 

Goldstone Resources Limited (AIM: GRL) is pleased to announce that it has
conditionally raised £176,000 before expenses by way of a subscription by an
institutional investor for, in aggregate, 16,761,905 new ordinary shares of 1
penny par value each in the capital of the Company ("Ordinary Shares") (the
"Subscription Shares") at a price of 1.05 pence per Subscription Share (the
"Subscription Price") (the "Subscription").

 

In addition, the Company is also pleased to announce that it has agreed with a
creditor on behalf of its subsidiary GoldStone Akrokeri Ltd for the conversion
of £234,000 (US$300,000) of its debt into 22,285,714 new Ordinary Shares (the
"Conversion Shares").

 

The Subscription Shares and the Conversion Shares, collectively 39,047,619
Ordinary Shares, will represent approximately 5.2% of the Company's share
capital as enlarged by the issue of the Subscription Shares and the Conversion
Shares. The Subscription Price of 1.05 penny represents a premium of
approximately 4% to the closing mid market price of the Company's Ordinary
Shares on 23 October 2024, being the latest practicable date prior to this
announcement.

 

The net proceeds of the Subscription will be used to continue to advance
development at the Homase Mine in Ghana towards delivering the planned 50,000
tonnes of stacked and agglomerated ore and achieving the Group's
gold-production target of 1,000oz per calendar month, and for general working
capital purposes.

 

Admission and Total Voting Rights

 

Application has been made to the London Stock Exchange for the New Ordinary
Shares to be admitted to trading on AIM ("Admission"). It is expected that
Admission will become effective and that dealings in the New Ordinary Shares
will commence at 8.00 a.m. on 30 October 2024. The New Ordinary Shares will be
issued as fully paid and will rank pari passu in all respects with the
Company's existing Ordinary Shares.

 

Upon Admission, the Company's issued ordinary share capital will consist of
752,493,809 Ordinary Shares with one voting right each (the "Enlarged Share
Capital"). The Company does not hold any Ordinary Shares in treasury.
Therefore, the total number of Ordinary Shares and voting rights in the
Company following Admission will be of 752,493,809. 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.

 

Emma Priestley, Chief Executive Officer, commented:

"We welcome the support of participating investors and our operational
creditor, which support the ongoing development and increasing production at
the Homase Mine. This funding, in conjunction with the fundraise announced on
21 August 2024, provides the majority of the c.£1.8m of equity funding
targeted in April 2024.

 

"We remain confident in the progress being made at the Homase Gold Mine and
continue to focus on achieving our production target of 1,000 ounces of gold
per month."

 

 

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

 

St Brides Partners Ltd

Susie Geliher                Tel: +44 (0)20 7236 1177

 

 

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, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019 ("UK MAR").

 

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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