Goldstone Resources Ltd Interim Results (1329K)

TIDMGRL

RNS Number : 1329K

Goldstone Resources Ltd

19 September 2016

19 September 2016

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Interim Results for the six months ended 30 June 2016

GoldStone (AIM: GRL), the AIM quoted company focused on gold in West and Central Africa, is pleased to announce its interim results for the six month period ended 30 June 2016.

Chairman's Statement

It is with pleasure that I present the interim results for GoldStone as Chairman of the Board. I am pleased to report that following the completion of the fundraise in July and with our new CEO, Emma Priestley, firmly in the driving seat, we are confident that we will be able to add value to the Company for the benefit of all shareholders.

Post the period end we raised, in aggregate, GBP1.0 million (approximately US$1.3 million) through the placing announced on 28 July 2016, and I am pleased to say that the majority of the funds raised came from existing shareholders who demonstrated their support in the Company and its management. The fundraise was to provide, inter alia, funding to advance the Company's principal project, Homase-Akrokerri in Ghana, and we have now completed the 120 hole auger-drilling program and expect to mobilise shortly a multi-purpose reverse circulation ("RC") and diamond drill ("DD") rig to follow up on the extensions to known mineralisation within the Akrokerri licence as identified by the 2015 auger programme.

I do believe that we are finally seeing the bottom of the commodity cycle at last and there is a palpable confidence and enthusiasm in the junior mining sector, which has not been there for the past five years or so. GoldStone is well placed to take advantage of this and we are already seeing a number of opportunities being presented to us, which we will continue to review and assess going forward. Our focus, however, will initially be on adding to the resources we already have in Ghana.

I would like to thank Christopher Hall for the efforts he put into Goldstone during his tenure as Chairman, and we wish him well with his focus now as Chairman of Stratex International Plc, our major shareholder.

I look forward to being able to update you on the results of the recently completed auger and the planned RC/DD drilling programme at Homase-Akrokerri as they become available, and will undertake to keep you and the market fully informed about our progress.

Neil Gardyne

Chairman

Chief Executive Officer's Report

PRINCIPAL ACTIVITIES

The principal activities of the Company during and post the period were focused on concluding essential corporate administrative issues and in recent months the Company has undertaken the successful fundraise of GBP1.0 million (approximately US$1.3 million) and the recommencing of exploration activities at the Company's principal project, Homase-Akrokerri, in Ghana.

REVIEW OF OPERATIONS

The Company continued to focus its activities on its two key licences in Ghana, namely Homase and Akrokerri. A well-structured programme of early works was undertaken, including rehabilitation of the site access roads, locating and pegging the drill site locations for the auger and RC/DD programmes, crop compensation negotiations, site clearing and procurement of elements for the refurbishment to the camp and certain items of mobile equipment. The Company also continues to be engaged with the local community with the restoration works to the Krodia and Adubriem Schools and the proposed outgrowers scheme involving the local community.

Homase-Akrokerri Licences - Ghana

The Group owns a 90 per cent. interest in the Homase licence and 100 per cent. of the Akrokerri licence. The local 10 per cent. partner in the Homase licence is supportive of the Company's plans.

The 2015 auger drilling programme identified, amongst other targets, a 1,500m gold-in-regolith anomaly at the AK02 prospect on the Akrokerri licence, immediately south-west and along strike of the 602,000 ounce Homase-Akrokerri JORC resource. The Homase-Akrokerri deposit is contiguous with Anglo Gold Ashanti's Obuasi Mine and the geology within Goldstone's Homase-Akrokerri Project is interpreted to be similar to that which hosts the Obuasi mineralisation.

The AK02 prospect has been prioritised for the planned RC drilling programme of up to 2,500m, whilst the auger programme has been designed to evaluate areas of ground between the anomalous zones identified in 2015.

The 120 hole auger programme has now been completed and the multi-purpose RC/DD drill rig is expected to be mobilised on site shortly with drilling expected to commence towards the end of September.

The rig also has the capability to undertake deeper drilling if warranted by the initial results and the DD capability will enable the Company to follow-up on zones of interest identified by the planned RC drilling and to test higher-grade zones of mineralisation beneath the existing resource. These zones have previously been identified as a result of exploration and drill programmes completed over the last 10 years.

Elsewhere in Ghana, minimal work has been undertaken at the Manso Amenfi project.

Gabon and Senegal

The Company continues to identify potential corporate deals for these licences in order to extract their underlying value without actively pursuing significant exploration work ourselves. This may take the form of joint ventures, disposals or other corporate restructuring.

Emma Priestley

Chief Executive Officer

For further information, please visit www.goldstoneresources.com or contact:

GoldStone Resources Limited

   Emma Priestley                                    [phone] 
   Neil Gardyne                                        [phone] 

Strand Hanson Limited

   Richard Tulloch / James Bellman           [phone] 

SI Capital Limited

   Nick Emerson / Andy Thacker              [phone] 
 
Consolidated Statement 
 of Financial Position 
as at 30 June 2016 
 
                                      30 June   31 December       30 June 
  In United States dollars               2016          2015          2015 
                                    Unaudited       Audited     Unaudited 
Assets 
Property, plant and equipment          10,219         9,110        21,507 
===============================  ============  ============  ============ 
Non-current assets                     10,219         9,110        21,507 
===============================  ============  ============  ============ 
 
Trade and other receivables                 -           912         7,693 
Cash and cash equivalents              79,580       244,530       749,921 
===============================  ============  ============  ============ 
Current assets                         79,580       245,442       757,614 
===============================  ============  ============  ============ 
 
  Total assets                         89,799       254,552       779,121 
===============================  ============  ============  ============ 
 
  Equity 
Share capital - ordinary 
 shares                             1,008,352     1,008,352     1,008,352 
Share capital - deferred 
 shares                             6,077,013     6,077,013             0 
Share premium                      25,717,878    25,717,878    25,717,878 
Capital contribution 
 reserve                              555,110       555,110     6,632,123 
Share options reserve                 605,808       605,808       605,808 
Accumulated deficit              (34,153,353)  (33,718,456)  (33,233,738) 
===============================  ============  ============  ============ 
Total equity                        (189,192)       245,705       730,423 
===============================  ============  ============  ============ 
 
  Liabilities 
Trade and other payables               28,991         8,847        48,698 
===============================  ============  ============  ============ 
Short term loan                       250,000             0             0 
===============================  ============  ============  ============ 
Current and total liabilities         278,991         8,847        48,698 
===============================  ============  ============  ============ 
 
  Total equity and liabilities         89,799       254,552       779,121 
===============================  ============  ============  ============ 
 
 
 
Consolidated statement of 
 comprehensive income 
for the 6 months ended 30 
 June 2016 
 
                              6 months    year ended   6 months 
                                 ended   31 December      ended 
  in United States dollars     30 June          2015    30 June 
                                  2016                     2015 
                             Unaudited       Audited  Unaudited 
Continuing operations 
Sundry income                    1,758        27,500     14,938 
Exploration expenses         (125,389)     (525,291)  (420,662) 
Other expenses               (312,537)     (804,366)  (409,460) 
===========================  =========  ============  ========= 
Results from operating 
 activities                  (436,168)   (1,302,157)  (815,184) 
===========================  =========  ============  ========= 
Finance income                   1,271         4,234      1,978 
===========================  =========  ============  ========= 
Net finance cost                 1,271         4,234      1,978 
===========================  =========  ============  ========= 
 
Loss before tax              (434,897)   (1,297,923)  (813,206) 
===========================  =========  ============  ========= 
Loss from continuing 
 operations                  (434,897)   (1,297,923)  (813,206) 
===========================  =========  ============  ========= 
Other comprehensive income           0             0          0 
Total comprehensive loss 
 for the period              (434,897)   (1,297,923)  (813,206) 
===========================  =========  ============  ========= 
Loss per share: 

Basic loss per share           (0.007)       (0.021)    (0.013) 
Diluted loss per share         (0.007)       (0.021)    (0.013) 
===========================  =========  ============  ========= 
 
 
 
Consolidated statement 
 of change in equity 
for the 6 months ended 
 30 June 2016 
 
                                    6 months    year ended      6 months 
                                       ended   31 December         ended 
  in United States dollars           30 June          2015       30 June 
                                        2016                        2015 
                                   Unaudited       Audited     Unaudited 
 
Share capital - ordinary 
 shares 
- at beginning of period 
 - restated                        1,008,352     1,008,352     1,008,352 
- end of period                    1,008,352     1,008,352     1,008,352 
 
Share capital - deferred 
 shares 
- at beginning of period 
 - restated                        6,077,013     6,077,013             0 
- end of period                    6,077,013     6,077,013             0 
 
Share premium                     25,717,878    25,717,878    25,717,878 
 
Capital contribution reserve 
- at beginning of period 
 - restated                          555,110       555,110     6,632,123 
- end of period                      555,110       555,110     6,632,123 
 
Share options reserve                605,808       605,808       605,808 
 
Accumulated deficit 
- at beginning of period        (33,718,456)  (32,420,533)  (32,420,533) 
- loss for the period              (434,897)   (1,297,923)     (813,206) 
- end of period                 (34,153,353)  (33,718,456)  (33,233,738) 
 
 
 
Consolidated statement 
 of cash flow 
for the 6 months ended 
 30 June 2016 
 
                                  6 months    year ended   6 months 
                                     ended   31 December      ended 
  in United States dollars         30 June          2015    30 June 
                                      2016                     2015 
                                 Unaudited       Audited  Unaudited 
Cash flow from operating 
 activities 
Loss for the period              (434,897)   (1,297,923)  (813,206) 
adjusted for: 
- depreciation                           0        12,397          0 
- interest received                (1,271)       (4,234)    (1,978) 
changes in: 
- trade and other receivables          912         9,011      2,230 
- trade and other payables          20,144      (42,040)    (2,189) 
===============================  =========  ============  ========= 
Net cash used in operating 
 activities                      (415,112)   (1,322,789)  (815,142) 
===============================  =========  ============  ========= 
 
Cash flow from investing 
 activities 
Interest received                    1,271         4,234      1,978 
Acquisition of property, 
 plant and equipment               (1,109)             0          0 
===============================  =========  ============  ========= 
Net cash used in / from 
 investing activities                  162         4,234      1,978 
===============================  =========  ============  ========= 
 
Cash flow from financing 
 activities 
Proceeds from issue of 
 ordinary share capital                  0             0          0 
Increase in short term 
 loans                             250,000             0          0 
===============================  =========  ============  ========= 
Net cash from financing 
 activities                        250,000             0          0 
===============================  =========  ============  ========= 
 
Net (decrease) / increase 
 in cash and cash equivalents    (164,950)   (1,318,555)  (813,164) 
===============================  =========  ============  ========= 
Cash and cash equivalents 
 at beginning of the year          244,530     1,563,085  1,563,085 
===============================  =========  ============  ========= 
Cash and cash equivalents 
 at end of the period               79,580       244,530    749,921 
===============================  =========  ============  ========= 
 
 

Notes to the consolidated financial statement

   1.             Loss per share 
 
                             6 months ended    year ended    6 months 
                                    30 June   31 December       ended 
  in United States dollars             2016          2015     30 June 
                                                                 2015 
                                  Unaudited       Audited   Unaudited 
Loss attributable 
 to shareholders                  (434,897)   (1,297,923)   (813,206) 
Weighted average number 
 of shares                       62,286,363    62,286,363  62,286,363 
===========================  ==============  ============  ========== 
Basic loss per share                (0.007)       (0.021)     (0.013) 
===========================  ==============  ============  ========== 
 
   2.            Availability of Interim Report 

The Interim Report will shortly be available on the Company's website www.goldstoneresources.com.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

This information is provided by RNS

The company news service from the London Stock Exchange

END

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September 19, 2016 02:00 ET (06:00 GMT)