Goldstone Resources Ltd Conditional Subscription of £600,000

RNS Number : 3074B

Goldstone Resources Ltd

21 August 2024

 

21 August 2024

 

GOLDSTONE RESOURCES LIMITED

("Goldstone" or the "Company")

 

Conditional Subscription of £600,000

 

Goldstone Resources Limited (AIM: GRL) is pleased to announce that it has conditionally raised £600,000 before expenses by way of a subscription by an institutional investor for, in aggregate, 57,142,857 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").

 

The Subscription Shares represent 8% of the Company's share capital as enlarged by the issue of the Subscription Shares and the Subscription Price of 1.05 penny represents a discount of approximately 44% to the 5-day VWAP mid-market price on AIM of 1.86 pence per Ordinary Share on 20 August 2024.

 

The net proceeds of the Subscription will be used 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 27 August 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 713,446,190 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 713,446,190. 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 are pleased to have conditionally raised a further £600,000, which supports the ongoing development and increasing production at the Homase Mine and provides a substantial proportion of the equity funding of c.£1.8m targeted in April 2024.

 

"We continue to advance production at the Homase Gold Mine, bringing us closer to our goal of producing 1,000 ounces of gold per month. Operating in Ghana, a stable and pro-mining jurisdiction with a rich history in gold production, we are confident in the potential of this project, especially with gold prices at a five-year high."

 

 

For further information, please contact:

 

GoldStone Resources Limited            Emma Priestley	Tel: [phone]
Strand Hanson Limited          James Dance / James Bellman	Tel: [phone]
S. P. Angel Corporate Finance LLP  Ewan Leggat / Charlie Bouverat	Tel: [phone]
St Brides Partners Ltd Susie Geliher	Tel: [phone]

 

 

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.

 

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