TIDMGSR
RNS Number : 6797D
Golden Saint Resources Ltd
28 April 2017
28 April 2017
Golden Saint Resources Ltd
("Golden Saint", "GSR" or the "Company")
Operational and Corporate Update, Placing, TVR and Board
Changes
Golden Saint Resources Ltd (AIM: GSR), the West African-focused
diamond and gold exploration company quoted on AIM, is pleased to
provide the market with the following operational and corporate
updates, relating to three of the Company's exploration licence
areas in Sierra Leone, being Baja, Tongo and Moa.
Baja Licence area
In the last update on 20 January 2017, the Company reported that
550 tonnes of gravels were extracted from the bulk sample trench at
Baja site 4. As at date of this report, a further 985 tonnes of
gravels comprising upper gravels (513 tonnes) and basal gravels
(472 tonnes) were extracted, the latter generally regarded as
potentially being of higher diamond grade. The local washing plant
was relocated from Baja site 2 to Baja site 4 so that the larger
stockpile at Baja site 4 can be treated first after the sampling
plant has been assembled and tested to operate at the desired
efficiency at Baja site 4. Extra security measures were taken to
increase the number of security personnel on site and additional
night lights at Baja site 4 were also installed. Security guards
were also stationed at Baja site 2 to safe keep the remaining
gravels until a later date when the gravels will be treated. Bulk
sampling operations at Baja site 4 commenced on 26 Feb 2017 and as
at 30 March 2017, 156 tonnes of gravels have been washed. The early
production results were positive and the Company recovered 19
diamonds weighing 3.0 carats. The stones ranged from 0.05 to 0.40
carats per stone. Gravel extraction and washing will continue and
the Company will provide further updates to the market as work
progresses.
Tongo Licence area - Alluvial Diamonds
At Tongo site 1, 426 tons of gravels have been extracted from
the original bulk sample trench on the lower terrace of the Woa
River. After the satisfactory completion of the recalibration and
efficiency tests on the Dove Explorer, bulk sampling operations
commenced on 14 February 2017 and with the initial wash of 138
tonnes of gravels up to 30 March 2017, the Company recovered 4
diamonds weighing a total of 3.75 carats. The stones ranged from
0.05 to 1.45 carats per stone. In addition, some 4.14 grams of
alluvial gold were also recovered from the 138 tonnes of gravels
treated. The Company will provide further updates as the gravel
extraction and washing operations progresses.
Tongo Licence area - Kimberlite Exploration
In consultation with Rock Forage Consulting Services ("Rock
Forage"), the Company commenced the kimberlite exploration project
comprising a loam sampling program to search for kimberlite
indicator minerals and eventually to validate a high priority dyke
target located near the northern section of our Tongo licence. This
dyke target was identified in the aeromagnetic surveys and
preliminary indications, including artisanal operations, point to
this section of the Tongo licence as having increased kimberlite
potential. A total of 25 loam sampling pits have been dug and the
loam samples have been collected for further analysis.
Site visit by Rock Forage
The site visit by Rock Forage and key individuals from the GSR
management team was carried out from 9 February 2017 to 4 March
2017. The visit focused on ensuring that the recommendations
contained in their last report dated 16 January 2017 and announced
on 20 Jan 2017 were satisfactorily implemented where practicable. A
detailed site visit report will be submitted by Rock Forage in due
course and this will be made available on the Company's website
after it has been announced.
Placing and TVR
The Board of the Company is pleased to announce that it has
raised GBP553,484 before expenses, by way of a placing ("Placing")
of 2,635,638,097 new ordinary shares of no par value in the Company
("Placing Shares") at a placing price of 0.021 pence per share.
The Placing is conditional only upon admission of the Placing
Shares to trading on AIM and has been carried out within the
Company's existing share authorities.
The Company intends to use the net proceeds of the Placing to
progress the Company's alluvial and bulk sampling operations, to
provide funding for the annual licence fees payable in relation to
the Group's three exploration licences and for general working
capital purposes.
In addition, the Company has agreed with selected consultants
including Franklyn Bai Kargbo, Africanus Sesay and Brima Koroma to
the issue of a total of 351,561,904 new Ordinary Shares
("Consultant Shares") in lieu of services rendered and to be
rendered (total of GBP73,828) up to 31 March 2018. The Consultant
Shares are being issued at a price of 0.021 pence per share, being
the same as the placing price.
The Placing Shares and the Consultant Shares will rank pari
passu with the existing Ordinary Shares and application has been
made for the Placing Shares and the Consultant Shares to be
admitted to trading on AIM ("Admission"). It is expected that
Admission will become effective and dealings in the Placing Shares
and the Consultant Shares will commence at 8.00 a.m. on 5 May
2017.
Following Admission of the Placing Shares and the Consultant
Shares, the Company's issued share capital will consist of
8,822,256,582 Ordinary Shares with voting rights. There are no
Ordinary Shares held in treasury. This number 8,822,256,582 may be
used by shareholders, following Admission, 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 Financial Conduct
Authority's Disclosure and Transparency Rules, of which the Company
has incorporated Chapter 5 into its articles of association.
Board Changes
The Board announces that it reluctantly accepts the resignation
of Mr. Alimamy Rassin Wurie from his position as the Executive
Director of the Company due to health reasons. Mr. Wurie has been a
valued member of the Board since his appointment on 10 February
2016 and the Board would like to express its appreciation to him
for his contribution over the last year. Mr. Alimamy Rassin Wurie
agreed to stay with the Group as a director of the Company's 75%
owned subsidiary in Sierra Leone, Golden Saint Resources (Africa)
Ltd, and the Company is commencing the process of his
appointment.
In addition, subject to satisfactory due diligence and
regulatory checks, the Board is proposing to appoint Mr. Yohanes
Adimas Prawiro, who has previously served as a Project Manager of
GSR, as the Chief Executive Officer of the Company. Further
information on Mr. Prawiro, as required to be disclosed under
Schedule Two, (g) (i)-(viii) of the AIM Rules, will be provided at
the time of his appointment.
Finally, the Board agreed on a 30% pay cut for the Chairman and
Finance Director's salary with effect from the beginning of April
2017.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Market soundings, as defined in MAR, were taken in respect of
the Placing with the result that certain persons became aware of
inside information, as permitted by MAR. That inside information is
set out in this announcement and has been disclosed as soon as
possible in accordance with paragraph 7 of article 17 of MAR.
Therefore, those persons that received inside information in a
market sounding are no longer in possession of inside information
relating to the Company and its securities.
For further information please contact:
Golden Saint Resources Ltd Keng Hock Seah +618 6145 4400
Beaumont Cornish Limited Roland Cornish +44 (0) 20 7628 3396
SVS Securities Plc Tom Curran / Ben Tadd +44 (0) 20 3700 0093
Cassiopeia Services LTD Stefania Barbaglio +44 (0)7949690338
This information is provided by RNS
The company news service from the London Stock Exchange
END
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