TIDMGRL
RNS Number : 3906A
Goldstone Resources Ltd
01 June 2021
1 June 2021
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Exercise of Warrants
GoldStone Resources Limited (AIM: GRL), the AIM quoted gold
exploration and development company focused on bringing the Homase
Mine within its Akrokeri-Homase Gold Project ("AKHM") into
production, is pleased to announce that Paracale Gold Ltd
("Paracale") has exercised, in aggregate, warrants to subscribe for
32,352,377 new ordinary shares of 1 penny each in the capital of
the Company ("Ordinary Shares"), comprising, 20,352,377 new
Ordinary Shares at a price of 1.2 pence per Ordinary Share (the
"Warrant Conversion Exercise") and 12,000,000 new Ordinary Shares
at a price of 3 pence per Ordinary Share (the "Cash Warrant
Exercise").
The Warrant Conversion Exercise will be set against the related
USD1,224,000 loan provided to the Company by Paracale on 28
December 2018, which accrues interest at a daily compound rate of
6% (the "Loan"). Accordingly, the amount due in respect of the
Warrant Conversion Exercise is GBP244,229 (c.USD344,362) will
satisfied by reducing the total amount of principal and interest
outstanding under the Loan to USD1,036,558.
The Cash Warrant Exercise will be satisfied in cash and provides
GBP360,000 of additional funding to the Company.
The Company remains on track to achieve the production schedule
announced 13 May 2021, and the proceeds of the Warrant Exercise
will be used to meet ongoing costs associated with the ramp up of
operations at the Homase Mine.
The 32,352,377 new Ordinary Shares to be issued to Paracale will
rank pari passu with the existing Ordinary Shares and application
will be made for the New Ordinary Shares to be admitted to trading
on AIM ("Admission"). It is expected that Admission will become
effective and dealings in the new Ordinary Shares will commence at
8.00 a.m. on 7 June 2021.
On Admission, Paracale will hold 102,704,754 Ordinary Shares in
the Company, representing approximately 28.69 per cent. of the
Company's issued share capital.
Related Party Transaction
Bill Trew, who personally holds 4,000,000 Ordinary Shares
directly, is a director and shareholder of Paracale Gold Limited,
which currently holds 70,352,377 ordinary shares in GoldStone
representing 21.61% of its currently issued share capital, and is
therefore a substantial shareholder and a related party of the
Company as defined in the AIM Rules for Companies ("AIM Rules").
Together with his interest held directly, Mr Trew and Paracale Gold
Limited will, an Admission, be interested in, in aggregate,
106,704,754 ordinary shares, representing 29.81% of the Company's
currently issued share capital. Accordingly, the Warrant Conversion
Exercise arrangement, as detailed above, is deemed to be a related
party transaction pursuant to Rule 13 of the AIM Rules and it is
noted that the board of Goldstone (excluding Mr Trew) considers,
having consulted with the Company's nominated adviser, Strand
Hanson Limited, that the terms and conditions of the Warrant
Conversion Exercise are fair and reasonable insofar as the
shareholders of the Company are concerned.
Total Voting Rights
Upon Admission, the Company's issued ordinary share capital will
consist of 357,938,344 Ordinary Shares with one voting right each.
The Company does not hold any Ordinary Shares in treasury.
Therefore, the total number of Ordinary Shares and voting rights in
the Company will be 357,938,344. 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.
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 gold
exploration and development company.
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 Akrokeri 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 52,500 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.
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END
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