24 October 2024
GOLDSTONE RESOURCES
LIMITED
("Goldstone" or the
"Company")
Conditional Subscription of
£175,000 and
Debt Conversion of
US$300,000
Goldstone Resources Limited (AIM:
GRL) is pleased to announce that it has conditionally raised
£176,000 before expenses by way of a subscription by an
institutional investor for, in aggregate, 16,761,905 new ordinary
shares of 1 penny par value each in the capital of the Company
("Ordinary Shares") (the
"Subscription Shares") at a
price of 1.05 pence per Subscription Share (the "Subscription Price") (the "Subscription").
In addition, the Company is also
pleased to announce that it has agreed with a creditor on behalf of
its subsidiary GoldStone Akrokeri Ltd for the conversion of
£234,000 (US$300,000) of its debt into 22,285,714 new Ordinary
Shares (the "Conversion
Shares").
The Subscription Shares and the
Conversion Shares, collectively 39,047,619 Ordinary Shares, will
represent approximately 5.2% of the Company's share capital as
enlarged by the issue of the Subscription Shares and the Conversion
Shares. The Subscription Price of 1.05 penny represents a premium
of approximately 4% to the closing mid market price of the
Company's Ordinary Shares on 23 October 2024, being the latest
practicable date prior to this announcement.
The net proceeds of the Subscription
will be used to continue to advance development at the Homase Mine
in Ghana towards delivering the planned 50,000 tonnes of stacked
and agglomerated ore and achieving the Group's gold-production
target of 1,000oz per calendar month, and for general working
capital purposes.
Admission and Total Voting Rights
Application has been made to the
London Stock Exchange for the New Ordinary Shares to be admitted to
trading on AIM ("Admission"). It is expected that
Admission will become effective and that dealings in the New
Ordinary Shares will commence at 8.00 a.m. on 30 October 2024. The
New Ordinary Shares will be issued as fully paid and will rank pari
passu in all respects with the Company's existing Ordinary
Shares.
Upon Admission, the Company's issued
ordinary share capital will consist of 752,493,809 Ordinary Shares
with one voting right each (the "Enlarged Share Capital"). The Company
does not hold any Ordinary Shares in treasury. Therefore, the total
number of Ordinary Shares and voting rights in the Company
following Admission will be of 752,493,809. 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.
Emma Priestley, Chief Executive Officer,
commented:
"We welcome the support of participating
investors and our operational creditor, which support the ongoing
development and increasing production at the Homase Mine. This
funding, in conjunction with the fundraise announced on 21 August
2024, provides the majority of the c.£1.8m of equity funding
targeted in April 2024.
"We remain confident in the progress being
made at the Homase Gold Mine and continue to focus on achieving our
production target of 1,000 ounces of gold per
month."
For
further information, please contact:
GoldStone Resources
Limited
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
Susie Geliher
Tel: +44 (0)20 7236
1177
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 by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019 ("UK
MAR").
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.