REG - Goldstone Resources - Conditional Subscription of £600,000

Goldstone ResourcesAnnouncement

21/08/2024 14:30

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RNS Number : 3074B  Goldstone Resources Ltd  21 August 2024

21 August 2024

 

GOLDSTONE RESOURCES LIMITED

("Goldstone" or the "Company")

 

Conditional Subscription of £600,000

 

Goldstone Resources Limited (AIM: GRL) is pleased to announce that it has
conditionally raised £600,000 before expenses by way of a subscription by an
institutional investor for, in aggregate, 57,142,857 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").

 

The Subscription Shares represent 8% of the Company's share capital as
enlarged by the issue of the Subscription Shares and the Subscription Price of
1.05 penny represents a discount of approximately 44% to the 5-day VWAP
mid-market price on AIM of 1.86 pence per Ordinary Share on 20 August 2024.

 

The net proceeds of the Subscription will be used 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 27 August 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
713,446,190 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 713,446,190. 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 are pleased to have conditionally raised a further £600,000, which
supports the ongoing development and increasing production at the Homase Mine
and provides a substantial proportion of the equity funding of c.£1.8m
targeted in April 2024.

 

"We continue to advance production at the Homase Gold Mine, bringing us closer
to our goal of producing 1,000 ounces of gold per month. Operating in Ghana, a
stable and pro-mining jurisdiction with a rich history in gold production, we
are confident in the potential of this project, especially with gold prices at
a five-year high."

 

 

For further information, please contact:

 

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

 Emma Priestley

 Strand Hanson Limited                              Tel: +44 (0)20 7409 3494

 James Dance / James Bellman

 S. P. Angel Corporate Finance LLP                  Tel: +44 (0)20 3470 0501

 Ewan Leggat / Charlie Bouverat

 St Brides Partners Ltd                             Tel: +44 (0)20 7236 1177

 Susie Geliher

 

 

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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