REG - Goldstone Resources - Issue of £2,400,000 Convertible Loan Note

Goldstone ResourcesAnnouncement

27/01/2023 08:00

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RNS Number : 0916O  Goldstone Resources Ltd  27 January 2023

27 January 2023

 

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

 

Issue of £2,400,000 Convertible Loan Note and 60,000,000 Warrants

 

GoldStone Resources Limited (AIM: GRL), the AIM quoted company, announces that
it has issued convertible loan notes to Blue Gold International Limited ("BGL"
or "Blue Gold") in the nominal amount of £2,400,000 (the "Loan Notes") which
are due for redemption on 30 November 2024.  At the election of BGL, the Loan
Notes (together with accrued interest to date) may be converted (in whole or
in part) at any time prior to redemption into new ordinary shares of 1 penny
each in the capital of the Company ("Ordinary Shares") at a conversion price
of £0.0325 per share.

BGL has also received warrants to subscribe for up to 60,000,000 Ordinary
Shares at a price of £0.04 per share exercisable at any time until 26 January
2025 (the "Warrants").

 

The directors of the Company ("Directors" or "Board") are mindful of the need
to expand the Company's Homase Mine which produced and sold 5,153 troy ounces
of gold in 2022, realising an average price of US$1,794 per oz for revenues of
US$9.3m, as announced on 3 January 2023.  Expansion will seek to increase
production and improvement of the recovery of the heap leach operation, which
is currently yielding 65% of the contained gold delivered to the heap.  The
proceeds from the Loan Notes will also contribute towards the purchase of
plant and equipment to assist in reducing the operating costs of the
operation.  The Company is reviewing an exploration programme along strike
and down dip of the current JORC resource, as well as exploring the anomalies
that were identified, referred to in the 24 March 2022 announcement, with the
soil sampling and auguring programme.  In addition, the company is continuing
with the ongoing exploration programme at Akrokeri Underground Mine.

 

Summary terms of the Loan Notes

·        Issue of £2,400,000 unsecured convertible loan notes due for
redemption on 30 November 2024.

·        The Loan Notes are denominated in units of £10,000, are
unsecured and will attract interest at a rate of 8 per cent per annum,
compounded daily until redemption or conversion.

·        The Loan Notes, including accrued interest, are convertible
at any time prior to cash redemption, at the holder's election, into new
Ordinary Shares at a price of £0.0325 per Ordinary Share (the "Conversion
Shares").

·        BGL shall also receive Warrants to subscribe for up to
60,000,000 new Ordinary Shares at a price of 4 pence per Ordinary Share at any
time during the 2-year period following the grant date.

·        Pursuant to the Loan Note agreement, BGL has the right to
appoint a non-executive director to the Board, subject, inter alia, to the
consent of the Company's Nominated Adviser with respect to suitability.

 

Blue Gold Limited

Blue Gold is a subsidiary of Blue International Holdings Limited. Blue Gold
acquired the gold producing Bogoso Prestea Gold Mine in the Ashanti gold belt
in Ghana in September 2020. Blue Gold owns 90% of the Project, with the
Government of Ghana holding the remaining 10% interest. Bogoso Prestea has one
of the largest mining concessions in Ghana, with an 82 kilometre gold strike
within the Ashanti gold belt.

 

 

Emma Priestley, CEO of GoldStone, commented:

"Blue Gold shares our vision for the expansion of the Homase Mine and the
potential development of the Homase-Akrokeri Project in Ghana.  In what
remains a challenging market for the natural resources sector, we welcome and
value the support of Blue Gold, who we believe will assist the company in this
business venture, and in making significant progress in Ghana."

 

 

**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

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

 Susie Geliher / Max Bennett

 

Notes to editor:

 

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.

 

 

 

 

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).

 

 

- END -

 

 

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