REG - Goldstone Resources - Corporate Update

Goldstone ResourcesAnnouncement

31/10/2023 07:00

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RNS Number : 7757R  Goldstone Resources Ltd  31 October 2023

31 October 2023

 

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

 

Corporate Update

 

GoldStone Resources Limited (AIM: GRL) announces, further to its announcements
of 19 September 2023 and 2 October 2023, that the Board continues to actively
pursue funding proposals and/or similar potential solutions to enable the
Company to seek to extend, renegotiate or refinance the outstanding secured
Gold Loan from its principal creditor (the "Secured Creditor") which is
currently due for repayment on 10 November 2023.  The Board is in discussions
with its Secured Creditor and, until those discussions have been concluded,
the Company's auditors are not in a position to finalise their audit opinion
in respect of the Company's final results for the 12 months to 31 December
2022 (the "2022 Accounts") and thus sign off on the 2022 Accounts. The Company
will therefore not be able to publish its accounts in advance of a suitable
solution being reached.

 

Whilst the Board is in active discussions with stakeholders to achieve an
appropriate solution with respect to the Gold Loan and the provision of
additional working capital for the Company, there can be no guarantee that
such an agreement can be reached or additional working capital provided. The
Board is taking appropriate professional advice, but in the event that a
solution cannot be achieved and the outstanding principal amount of the Gold
Loan and accrued interest thereon (which as of 30 September 2023 amounted to,
in aggregate, 2,354 ounces of gold) cannot be repaid or rescheduled prior to
10 November 2023, security over the Company's primary assets could potentially
be enforced.

 

The Company's Ordinary Shares will remain suspended from trading on AIM until
such time as it has satisfied the requirements of AIM Rule 19 with respect to
publication of its 2022 Accounts and AIM Rule 18 with regard to publication of
its interim results for the six-month period to 30 June 2023, which were
required to be published by 30 September 2023. In the event that both such
accounts cannot be published by 31 December 2023, admission of the Company's
Ordinary Shares to trading on AIM may be cancelled in accordance with the
provisions of AIM Rule 41.

 

The Company has recently completed a gold pour of 376 ounces at its Homase
mine thereby providing cashflow of approximately $0.65m. As at 30 September
2023, the Company's consolidated unaudited cash position was approximately
$0.2m, with consolidated total liabilities estimated at $10.7m, comprising
$7.8m of current liabilities (including $4.4m in relation to the Gold Loan
referred to above) and the convertible loan note issued to Blue Gold
International Limited in January 2023 (approximately $2.9m).

 

The Company will provide a further update(s) in due course as appropriate.

 

Unless otherwise defined herein, all capitalised terms in this announcement
shall have the meanings assigned to them in the Company's announcements of 2
October 2023.

 

 

- ENDS-

 

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
                                     Tel: +44 (0)20 7236 1177

 St Brides Partners Ltd

 Susie Geliher / Max Bennett

 

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.

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, which 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.

 

 

 

 

 

 

 

 

 

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