Goldstone Resources Ltd Extension of Gold Loan (3194M)
20 September 2021 - 08:29PM
UK Regulatory
TIDMGRL
RNS Number : 3194M
Goldstone Resources Ltd
20 September 2021
20 September 2021
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Extension of Gold Loan
GoldStone Resources Limited (AIM: GRL) is pleased to announce
that Asia Investments Management Services Limited ("AIMS") has
agreed to extend the maturity date on the US$3 million secured gold
loan announced on 22 June 2020 (the "Gold Loan") to 31 August 2022
(the "Extension"). The Extension restructures the repayment
obligations to enable the Company to ramp up production. The
Company retains the right to repay the Gold Loan early without
penalty.
Interest will continue to accrue at the default rate of 17%
until January 2022, then will revert to the original interest rate
of 14% until maturity. In conjunction with the Extension, the
Company has agreed a repayment schedule for the Gold Loan and
accrued and ongoing interest, as set out below:
Month Gold Loan payments (in kilos of
gold)
October 2021 5
--------------------------------
November 2021 6
--------------------------------
December 2021 8
--------------------------------
January 2022 8
--------------------------------
February 2022 8
--------------------------------
March 2022 8
--------------------------------
April 2022 8
--------------------------------
May 2022 8
--------------------------------
June 2022 8
--------------------------------
July 2022 8
--------------------------------
August 2022 7.4
--------------------------------
In the event that any payment is not made when due in accordance
with the agreed repayment schedule, this will be deemed an event of
default. Any interest that is not paid when due will accrue
interest at the default rate of 17% until payment.
Related Party Transaction
AIMS is a substantial shareholder of the Company, with an
interest of approximately 27.71% of the Company's ordinary shares,
and is therefore a related party of the Company as defined in the
AIM Rules for Companies ("AIM Rules").
Accordingly, the Extension of the Gold Loan with AIMS, 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 considers, having
consulted with the Company's nominated adviser, Strand Hanson
Limited, that the terms and conditions of the Extension are fair
and reasonable insofar as the shareholders of the Company are
concerned.
- 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
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.
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.
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END
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