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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDEAFDKFLAFEAA

(END) Dow Jones Newswires

March 17, 2021 03:00 ET (07:00 GMT)

Goldstone Resources (LSE:GRL)
Historical Stock Chart
From Apr 2022 to May 2022 Click Here for more Goldstone Resources Charts.
Goldstone Resources (LSE:GRL)
Historical Stock Chart
From May 2021 to May 2022 Click Here for more Goldstone Resources Charts.