Goldstone Resources Ltd Settlement of Claim by Former Director (9381L)

TIDMGRL

RNS Number : 9381L

Goldstone Resources Ltd

18 January 2021

18 January 2021

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Settlement of Claim by Former Director

GoldStone Resources Limited (AIM: GRL), the AIM quoted gold exploration and development company focused on bringing its Akrokeri-Homase Gold Project ("AKHM") into production, announces that it has reached an agreement with a former director of the Company, for full and final settlement of damages awarded by the South African Labour Court (the "Court") in December 2018 (the "Settlement Agreement"), as announced at such time and most recently disclosed in the Company's interim results for the six-month period to 30 June 2020.

Pursuant to the Settlement Agreement, the Company has agreed to issue 1,800,000 new ordinary shares of 1p each in the Company ("Ordinary Shares") (the "Settlement Shares") to the former director, which have a value of GBP163,800 (approximately US$222,768) at the closing middle market price of the Company's Ordinary Shares on 15 January 2021, which, in addition to US$22,500 already paid in cash, represents full and final settlement of the damages awarded to him by the South African courts. The Company has been indemnified against any future claims by the former director of the Company.

The Settlement Agreement allows Goldstone to retain the majority of the cash associated with the damages awarded to the former director of the Company for working capital purposes as it targets the commencement of production at AKHM.

The Settlement Shares will rank pari passu with the existing Ordinary Shares and application will be made for the Settlement Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Settlement Shares will commence at 8.00 a.m. on 21 January 2021.

Total Voting Rights

Upon Admission, the Company's issued ordinary share capital will consist of 283,585,967 Ordinary Shares with one voting right each. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary Shares and voting rights in the Company will be 283,585,967. 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.

For further information, please contact:

 
 
   GoldStone Resources Limited 
 Bill Trew / Emma Priestley      Tel: [phone] 
 
 
   Strand Hanson Limited 
 James Dance / James Bellman     Tel: [phone] 
 
 
   SI Capital Limited 
 Nick Emerson                    Tel: [phone] 
 

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.

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted gold exploration and development company.

The Company is focused on developing the Akrokeri-Homase project in south-western Ghana, which hosts a JORC Code compliant 602,000 oz 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 Akrokeri 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 52,500 oz gold at 2.5 g/t recovered. 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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January 18, 2021 02:00 ET (07:00 GMT)