TIDMGRL
RNS Number : 4630N
Goldstone Resources Ltd
30 September 2021
30 September 2021
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Interim Results for the six months ended 30 June 2021
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") in Ghana into
production, announces its unaudited interim results for the
six-month period ended 30 June 2021.
Overview
-- Continued advancement of the Homase Mine in the highly
prospective Ashanti Region of Ghana.
-- Formal approval received in February 2021 from the Ghanaian
Environmental Protection Authority and the Minerals Commission in
respect of the Environmental Permit, Operating Permit and Water
Permit, which permitted cyanide use enabling us to stack first ore
on the Heap Leach Pad in May 2021.
-- A total of US$4.8 million proceeds received during the period
from the exercise of Warrants from supportive existing
shareholders.
-- Net assets increased to US$15.5 million (31 December 2020: US$10.8 million).
Post Period
-- 20,000,000 Warrants converted at 1.2 pence per Ordinary Share
set against the loan provided to the Company by Paracale on 28
December 2018, reducing the balance of the Loan to US$723,669.
-- First batch of loaded carbon produced from the CIS plant for further processing.
-- US$409,000 raised from the exercise of 10,000,000 Warrants at 3 pence per Ordinary Share.
-- Extension to the maturity date on the US$3 million secured
gold loan announced on 22 June 2020 to 31 August 2022, and agreed a
repayment schedule.
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
Chief Executive Officer's Statement
T he advancement to gold production from the Homase Mine within
the Company's Akrokeri-Homase Gold Project ("AKHM") in Ghana
remains Goldstone's priority, and significant progress was made in
this regard during H1 2021.
The Company has been responsible for building and commissioning
the heap leach and plant and, once our elution facility has been
completed, will commence the smelting of the gold concentrate and
delivery of gold doré bars.
With the award of the Environmental Permit by the Environmental
Protection Agency in February 2021, shortly followed by the
granting of our Operating and Water Permit, mining commenced at the
first pit within the Homase Mine in April, following the
pre-stripping and clearing.
The mechanical and electrical components, associated with the
dry plant for the agglomerated ore, transport and stacking, were
assembled and commissioned in March and April, including a
screening plant, grasshopper conveyors and an extendable stacker,
which was positioned on the Leach-pad for ore stacking.
The first two cells of the heap leach pad, with a combined area
of 13,000m(2) , were commissioned on 13 May 2021, and a total of
seven cells will complete this initial Leach-pad with an area of
approximately 73,000m(2) . The first two cells enabled stacking at
an initial rate of 100 tonnes per hour to commence, which is
expected to ramp up to a target of 200 tonnes per hour (c.2,500
tonnes per day).
The first ore was stacked on the leach pad on 6 May 2021, and,
to date, 87,300 tonnes of ore have been stockpiled, equating to
around one month of mine production at full 3,000 tonne per day
heap leach capacity.
The Company had a prolonged wait for approval from the Minerals
Commission of Ghana to start irrigation and leaching of ore placed
on the heap leach pad at the Homase Mine, which was awarded, post
period end, on 12 July 2021. In August 2021, the Company
successfully commissioned the Carbon in Solution ("CIS") plant
on-site, and despite some delays, and some initial commissioning
issues with stacking and agglomeration, the Heap Leach Plant is now
operating as planned. These issues unfortunately meant that the
Company's target production of 25,000
ounces of gold for the first eight months of production has been delayed.
As at 17 September 2021, the Company had mined 133,000 tonnes of
ore and 385,700 tonnes of waste from the first four benches of the
Krodua Pit within the Homase Mine. All indications are that the
grade and tonnes mined to date are within expectations and at a
total cash cost, pre-tax, of under US$600 per ounce. These figures
have been derived by the Company and the Board believes the cash
cost lies within the lower quartile of industry cost standards.
As noted above, 87,300 tonnes of ore have been stacked on the
Heap Leach pads and, whilst this is behind our initial forecast
schedule, the Company is now stacking the balance of the stockpile
at a consistent 120 tonnes per hour. We have temporarily paused
further mining whilst the existing stockpile is being depleted and
expect to recommence shortly.
The Company is pleased with the initial permeability and
dissolution of the leachate, and the CIS plant is operating well
and producing loaded carbon at the expected recovery rates. The
Company is continuing to make improvements to the CIS plant and
investigating further ramping up the speed of stacking and the
subsequent processing. The Company has now taken the first batch of
loaded carbon out of the CIS plant for further processing, but
unfortunately has not yet been able to elute the contained
gold.
The Company had been seeking to elute the gold from the loaded
carbon at a nearby rented facility, however approval from the
Minerals Commission of Ghana for use of this facility has not yet
been forthcoming. In light of this, the Company is now accelerating
its plans to complete its own elution facility on site, which we
are endeavouring to complete in the shortest possible
timeframe.
The Company expects to increase the planned gold production from
the Company's original guidance of 14,400 ounces, stated in the
Definitive Economic Plan ("DEP") announced on 19 June 2019 to
around 50,000 ounces of gold per annum within the first year of
production, which would represent an increase of more than 300%
from the original production schedule.
Whilst the Company is ramping up stacking and production, it has
paused the update of the DEP, announced 13 May 2021. The Company
expects to complete the update in early 2022.
Corporate Overview
During the period, the Company announced exercise of warrants by
the issue of, in aggregate, 126 million new ordinary shares of 1
penny each in the capital of the Company ("Ordinary Shares") (the
"Warrant Exercise") for consideration of US$4.8 million. Of this,
102 million warrants were exercised by Asian Investment Management
Services Ltd ("AIMS") and Paracale Gold Limited ("Paracale"). In
addition, Paracale exercised 20,352,377 warrants at a price of 1.2
pence per Ordinary Share, was set against the related US$1,224,000
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 being GBP244,229 (c.US$344,362) was satisfied by reducing
the total amount of principal and interest outstanding under the
Loan to US$1,036,558 on 1 June 2021.
In March 2021, as consideration for the Deferment of the Gold
Loan, announced 14 March 2020, 2,000,000 new Ordinary Shares were
issued to AIMS.
On 12 July 2021, the Company reached agreement for settlement of
its twenty outstanding unsecured bonds of US$50,000 each (the
"Bonds") with the holders of the Bonds (the "Bondholders"). The
offer was accepted by all Bondholders, who agreed to full and final
settlement of the Bonds in exchange for the issue of, in aggregate,
12,000,000 Ordinary Shares (the "Bond Settlement Shares") (the
"Bond Settlement Agreement").
Verbal agreement has been received from BCM Investments Limited
("BCM"), which will be allotted its 3,600,000 Bond Settlement
Shares immediately following signature of a written Bond Settlement
Agreement. A further announcement will be made in due course.
Losses for the six months to 30 June 2021 were approximately
US$0.5 million (30 June 2020: Loss of US$0.3 million). The
financial statements at the period end show the Group's balance
sheet, with net assets standing at US$15.5 million against net
assets of US$10.8 million as at 31 December 2020. The net assets
increased as result of the funding secured during the period, with
warrant exercises.
Having received funding from the Warrants Exercise of US$4.8
million during the H1 2021, to fund the development of the Homase
Mine and general working capital, the Company had cash and cash
equivalents of approximately US$1.5 million as at 30 June 2021 (30
June 2020: US$0.5 million).
Post period end, on 17 July 2021, Paracale exercised 20 million
warrants at a price of 1.2 pence per Ordinary Share, which was set
against the related US$1,224,000 Loan provided by Paracale.
Accordingly, the balance of the Loan has now been reduced to
US$723,669. Interest shall accrue on this outstanding principal
balance in accordance with the terms of the Loan Agreement.
In addition, the Company received further Warrant Exercise of 10
million Warrants at a price of 3 pence for consideration of
US$409,000.
On 20 September 2021, AIMS 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.
Other
On 18 January 2021, the Company reached an agreement with a
former director of the Company, for full and final settlement of
damages awarded by the South African Labour Court in December 2018,
pursuant to which 1,800,000 new Ordinary Shares were issued to the
former director. This represented full and final settlement of the
damages awarded to him by the South African Labour Court and the
Company has been indemnified against any future claims by the
former director.
Outlook
I look forward to keeping shareholders updated as we move
towards production and would like to thank the team, my fellow
Board members, and all our stakeholders in Ghana and
internationally for their continued support.
Emma Priestley
Chief Executive Officer
Consolidated statement of financial position
as at 30 June 2021
30 June 30 June 31 December
in united states dollars notes 2021 2020 2020
unaudited unaudited audited
Assets
property, plant and equipment 7 20,926,500 407,198 491,208
intangible assets - exploration
and evaluation 6 - 9,927,752 14,339,772
-------------------------------- ------- ------------ ------------ ------------
total non-current assets 20,926,500 10,334,950 14,830,980
-------------------------------- ------- ------------ ------------ ------------
trade and other receivables 85,102 3,380,488 2,145,576
cash and cash equivalents 1,537,600 505,462 701,384
-------------------------------- ------- ------------ ------------ ------------
total current assets 1,622,702 3,885,950 2,846,960
-------------------------------- ------- ------------ ------------ ------------
total assets 22,549,202 14,220,900 17,677,940
-------------------------------- ------- ------------ ------------ ------------
Equity
share capital - ordinary
shares 5,742,974 3,484,580 3,913,963
share capital - deferred
shares 6,077,013 6,077,013 6,077,013
share premium 31,400,794 27,222,084 28,080,853
foreign exchange reserve 6,684 (70,114) (82,149)
capital contribution reserve 555,110 555,110 555,110
share options reserve 3,535,197 3,535,197 3,535,197
accumulated deficit (31,783,539) (30,916,914) (31,234,911)
-------------------------------- ------- ------------ ------------ ------------
total equity 15,534,233 9,886,956 10,845,076
-------------------------------- ------- ------------ ------------ ------------
Liabilities
provision for rehabilitation 7 901,284 - -
borrowings 8 - 2,368,992 1,300,000
-------------------------------- ------- ------------ ------------ ------------
non-current liabilities 901,284 2,368,992 1,300,000
trade and other payables 593,558 664,952 1,001,998
borrowings 8 5,520,127 1,300,000 4,530,866
-------------------------------- ------- ------------ ------------ ------------
current liabilities 6,113,685 1,964,952 5,532,864
-------------------------------- ------- ------------ ------------ ------------
total liabilities 7,014,969 4,333,944 6,832,864
-------------------------------- ------- ------------ ------------ ------------
total equity and liabilities 22,549,202 14,220,900 17,677,940
-------------------------------- ------- ------------ ------------ ------------
Consolidated statement of comprehensive income
for the 6 months ended 30 June 2021
6 months ended 6 months ended year ended
30 June 2021 30 June 2020 31 December
in united states dollars notes 2020
unaudited unaudited audited
continuing operations
administrative expenses (548,628) (266,156) (577,153)
------------------------------- ------- -------------- -------------- ------------
operating loss (548,628) (266,156) (577,153)
------------------------------- ------- -------------- -------------- ------------
finance expense - (25,942) (32,942)
------------------------------- ------- -------------- -------------- ------------
net finance cost - (25,942) (32,942)
------------------------------- ------- -------------- -------------- ------------
loss before and after tax
from continuing operations 5 (548,628) (292,098) (610,095)
------------------------------- ------- -------------- -------------- ------------
Items that may be reclassified
subsequently to profit and
loss:
foreign exchange translation
movement 88,833 (18,053) (30,088)
------------------------------- ------- -------------- -------------- ------------
total comprehensive loss
for the period (459,795) (310,151) (640,183)
------------------------------- ------- -------------- -------------- ------------
loss per share from operations
basic and diluted earnings
per share attributable to
the equity holders of the
company during the period
(expressed in cent per share) 4 (0.002) (0.001) (0.002)
------------------------------- ------- -------------- -------------- ------------
Consolidated statement of changes in equity
for the 6 months ended 30 June 2021
share share foreign
capital capital exchange capital share
in united ordinary deferred share reserve contribution options accumulated total
states dollars shares shares premium reserve reserve deficit equity
--------------- ---------- ---------- ----------- --------- ------------- ---------- ------------- -----------
balance as at
1 January
2020 3,484,580 6,077,013 27,222,084 (52,061) 555,110 229,688 (30,624,816) 6,891,598
total
comprehensive
loss
for the
period - - - - - - (292,098) (292,098)
translation
movement - - - (18,053) - - - (18,053)
share warrants
granted
in period - - - - - 3,305,509 - 3,305,509
--------------- ---------- ---------- ----------- --------- ------------- ---------- ------------- -----------
balance as at
30 June
2020 3,484,580 6,077,013 27,222,084 (70,114) 555,110 3,535,197 (30,916,914) 9,886,956
--------------- ---------- ---------- ----------- --------- ------------- ---------- ------------- -----------
total loss for
the period - - - - - - (317,997) (317,997)
translation
movement - - - (12,035) - - - (12,035)
share warrants
exercised
in period 405,084 - 810,168 - - - - 1,215,252
share issue in
period 24,299 - 48,601 - - - - 72,900
balance as at
31 December
2020 3,913,963 6,077,013 28,080,853 (82,149) 555,110 3,535,197 (31,234,911) 10,845,076
--------------- ---------- ---------- ----------- --------- ------------- ---------- ------------- -----------
total loss for
the period - - - - - - (548,628) (548,628)
translation
movement - - - 88,833 - - - 88,833
share warrants
exercised
in period 1,776,839 - 3,037,133 - - - - 4,813,972
share issue in
period 52,172 - 282,808 - - - - 334,980
--------------- ---------- ---------- ----------- --------- ------------- ---------- ------------- -----------
balance as at
30 June
2021 5,742,974 6,077,013 31,400,794 6,684 555,110 3,535,197 (31,783,539) 15,534,233
--------------- ---------- ---------- ----------- --------- ------------- ---------- ------------- -----------
Consolidated statement of cash flow
for the 6 months ended 30 June 2021
6 months ended 6 months year ended
30 June ended 31 December
in united states dollars 2021 30 June 2020
2020
unaudited unaudited audited
cash flow from operating activities
operating loss for the period/year (548,628) (266,156) (577,153)
adjusted for:
* depreciation 12,739 5,152 14,617
* foreign exchange differences 88,833 (18,053) (30,088)
* provisions - - 25,737
changes in working capital:
* trade and other receivables - (125,006) -
* trade and other payables (408,440) 215,914 329,937
========================================== ============== =========== ============
net cash used in operating activities (855,496) (188,149) (236,950)
========================================== ============== =========== ============
cash flow from investing activities
capitalisation of exploration costs (746,640) (1,458,481) (4,185,534)
acquisition of property, plant and
equipment (2,066,238) (388,036) (481,511)
net cash used in investing activities (2,812,878) (1,846,517) (4,667,045)
========================================== ============== =========== ============
cash flow from financing activities
proceeds from loan - 1,150,000 3,000,000
repayment of loan (344,362) - -
proceeds from bonds - 1,300,000 1,300,000
redemption of bonds (300,000) - -
proceeds from share issue 5,148,952 - 1,215,251
net cash received from financing
activities 4,504,590 2,450,000 5,515,251
========================================== ============== =========== ============
net decrease in cash and cash equivalents 836,216 415,334 611,256
------------------------------------------ -------------- ----------- ------------
cash and cash equivalents at beginning
of the period/year 701,384 90,128 90,128
------------------------------------------ -------------- ----------- ------------
cash and cash equivalents at end
of the period/year 1,537,600 505,462 701,384
------------------------------------------ -------------- ----------- ------------
Notes to the unaudited consolidated financial statement
1. General information
The financial statements present the consolidated results of the
Company and its subsidiaries (the "Group") for each of the periods
ending 30 June 2021, 30 June 2020 and 31 December 2020.
As permitted, the Group has chosen not to adopt International
Accounting Standard 34 'Interim Financial Reporting' in preparing
these interim financial statements. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2020,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union.
The unaudited interim financial information set out above does
not constitute statutory accounts. The information has been
prepared on a going concern basis in accordance with the
recognition and measurement criteria of International Financial
Reporting Standards (IFRS) as adopted by the European Union. Except
as described below, the accounting policies applied in preparing
the interim financial information are consistent with those that
have been adopted in the Group's 2020 audited financial statements.
Statutory financial statements for the year ended 31 December 2020
were approved by the Board of Directors on 27 June 2021 and
delivered to the Registrar of Companies. The report of the auditors
on those financial statements was unqualified. The Directors
approved these unaudited condensed interim financial statements on
29 September 2021.
There are no IFRSs or IFRIC interpretations that are effective
for the first time for the financial year commencing 1 January 2021
that would be expected to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2021
and the 6 months ended 30 June 2020 have not been audited.
The business is not subject to seasonal variations. No dividends
have been paid in the period (2020: US$ Nil).
2. Risks and uncertainties
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2020 Annual
Report and Financial Statements, a copy of which is available on
the Company's website: www.goldstoneresources.com . The Group's key
financial risks are the availability of adequate funding and
foreign exchange movements.
3. Critical accounting estimates and judgements
The preparation of the unaudited condensed consolidated interim
financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period. Significant items subject to such
estimates are set out in note 2(d) of the Group's 2020 Annual
Report and Financial Statements. The nature and amounts of such
estimates have not changed significantly during the interim period.
The unaudited condensed consolidated interim financial statements
have been prepared under the historical cost convention as modified
by the measurement of certain investments at fair value.
4. Earnings per share
6 months ended 6 months ended year ended
30 June 30 June 31 December
in united states dollars 2021 2020 2020
unaudited unaudited audited
loss attributable to shareholders (548,628) (292,098) (610,095)
weighted average number
of ordinary shares 271,403,038 250,050,253 252,004,667
================================== ============== ============== ============
basic and diluted earnings
per share (0.002) (0.001) (0.002)
================================== ============== ============== ============
5. Operating segments
The Group has two reportable segments, exploration and
corporate, which are the Group's strategic divisions. For each of
the strategic divisions, the Group's CEO, deemed to be the Chief
Operating Decision Maker ("CODM"), reviews internal management
reports on at least a monthly basis. The Group's reportable
segments are:
Exploration and Evaluation: the exploration operating segment is
presented as an aggregation of the Homase and Akrokeri licences
(Ghana). Expenditure on exploration activities for each licence is
used to measure agreed upon expenditure targets for each licence to
ensure the licence clauses are met.
Corporate: the corporate segment includes the holding company
costs in respect of managing the Group. There are varying levels of
integration between the corporate segment and the combined
exploration activities, which include resources spent and accounted
for as corporate expenses that relate to furthering the exploration
activities of individual licences.
information about reportable segments for the year ended 31
December 2020
in united states dollars exploration corporate total
-------------------------------- ------------ ------------ ------------
reportable segment expenditure - (610,095) (610,095)
================================= ============ ============ ============
reportable segment (loss) - (610,095) (610,095)
================================= ============ ============ ============
reportable segment assets 14,359,654 3,318,286 17,677,940
================================= ============ ============ ============
reportable segment liabilities (504,905) (6,327,959) (6,832,864)
================================= ============ ============ ============
information about reportable segments for the period ended 30
June 2020
in united states dollars exploration corporate total
-------------------------------- ------------ ------------ ------------
reportable segment expenditure - (292,098) (292,098)
================================= ============ ============ ============
reportable segment (loss) - (292,098) (292,098)
================================= ============ ============ ============
reportable segment assets 10,601,550 3,619,350 14,220,900
================================= ============ ============ ============
reportable segment liabilities (36,130) (4,297,814) (4,333,944)
================================= ============ ============ ============
information about reportable segments for the period ended 30
June 2021
in united states dollars exploration corporate total
-------------------------------- ------------ ------------ ------------
reportable segment expenditure - (548,628) (548,628)
================================= ============ ============ ============
reportable segment (loss) - (548,628) (548,628)
================================= ============ ============ ============
reportable segment assets 20,986,537 1,562,665 22,549,202
================================= ============ ============ ============
reportable segment liabilities (1,109,658) (5,905,311) (7,014,969)
================================= ============ ============ ============
6. Intangible assets - exploration and evaluation
The Group's intangible assets comprise wholly of exploration and
evaluation assets in respect of the Homase-Akrokeri project in
Ghana.
in united states dollars Total
--------------------------------------- -------------
balance as at 31 December 2019 8,256,380
======================================== =============
Additions 1,671,372
balance as at 30 June 2020 9,927,752
======================================== =============
Additions 4,412,020
balance as at 31 December 2020 14,339,772
======================================== =============
additions 746,640
transfer to assets under construction (15,086,412)
balance as at 30 June 2021 -
======================================== =============
Once commercially viable reserves are established and
development is sanctioned, exploration and evaluation assets are
transferred to assets under construction, see note 7.
7. Property, plant and equipment
plant and
equipment
in united states and motor assets under
dollars gold samples vehicles construction total
---------------------------- ------------- ----------- -------------- -----------
Cost
1 January 2020 4,570 282,141 - 286,711
additions - 481,511 - 481,511
------------------------------ ------------- ----------- -------------- -----------
31 December 2020 4,570 763,652 - 768,222
transfers from intangibles - - 15,086,412 15,086,412
additions - 255,285 4,205,050 4,460,335
increase in provision
for rehabilitation - - 901,284 901,284
31 June 2021 4,570 1,018,937 20,192,746 21,216,253
============================== ============= =========== ============== ===========
plant and
equipment
in united states and motor assets under
dollars gold samples vehicles construction total
----------------------- -------------- ----------- -------------- --------
Depreciation
1 January 2020 - 262,397 - 262,397
charge for the year - 14,617 - 14,617
------------------------- ------------ ----------- -------------- --------
31 December 2020 - 277,014 - 277,014
charge for the period - 12,739 - 12,739
31 June 2021 - 289,753 - 289,753
========================= ============ =========== ============== ========
Net Book Value
31 December 2020 4,570 486,638 - 491,208
31 June 2021 4,570 729,184 20,192,746 20,926,500
==================== ====== ======== =========== ===========
8. Borrowings
6 months ended 6 months ended year ended
30 June 30 June 31 December
in united states dollars 2021 2020 2020
unaudited unaudited audited
shareholder loan - 1,306,507 -
gold loan - 1,062,485 -
bonds - - 1,300,000
--------------------------- -------------- -------------- ------------
non-current borrowings - 2,368,992 1,300,000
shareholder loan 1,041,282 - 1,346,642
gold loan 3,478,845 - 3,184,224
bonds 1,000,000 1,300,000 -
--------------------------- -------------- -------------- ------------
current borrowings 5,520,127 1,300,000 4,530,866
=========================== ============== ============== ============
total borrowings 5,520,127 3,668,992 5,830,866
=========================== ============== ============== ============
Shareholder loan
The Company entered into a loan agreement with Paracale Gold
Limited ("Paracale"), the Company's major shareholder, in December
2018, for a loan of up to US$1.2 million.
The loan accrues interest at 6.0% per annum, compounded daily
against the loan's outstanding balance, until it
is repaid. The loan will be repaid in full on or before 2 June 2022.
In consideration of entering into the loan agreement, Paracale,
were issued with 40,352,377 warrants to subscribe for such number
of ordinary shares of 1 penny each in the capital of the Company
("Ordinary Shares") at an exercise price of 1.2p per share, at any
time during the period through to 2 June 2022.
Gold Loan
The Company entered into a loan agreement with Asian Investment
Management Services Limited ("AIMS") in June 2020, for a gold loan
of up to 2,000 troy ounces of gold at a price of US$1,500 per troy
ounce, equating to a value of US$3.0 million before expenses.
On 20 September 2021, AIMS 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.
Bonds
The Company issued twenty six unsecured bond notes of US$50,000
each to certain existing and new investors, raising, in aggregate,
US$1.3 million before expenses. Paracale Gold and BCM, the
Company's major shareholders, each subscribed for six bonds with a
value of, in aggregate, US$0.3 million respectively. During the
period, six of the bond notes were redeemed.
In consideration of entering into the Bonds, a total of
52,000,000 warrants were issued to subscribe for such number of
Ordinary Shares at the Exercise Price, at any time during the
period through to 22 June 2022.
9. Availability of interim report
The interim report is available on the Company's website
www.goldstoneresources.com.
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IR FFFVIAEIAFIL
(END) Dow Jones Newswires
September 30, 2021 02:00 ET (06:00 GMT)
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