Placing

RNS Number : 6401O

Goldstone Resources Ltd

23 September 2013

 



GOLDSTONE RESOURCES LTD

("GoldStone" or "the Company")

PLACING

GoldStone (AIM: GRL), the AIM quoted exploration company focused on gold in West Africa, announces that it has conditionally raised £500,000 (before expenses) through a placing of new ordinary shares at a price of 1.5p per share (the "Placing").

Background

On 26 July 2013 GoldStone announced a placing raising £359,477 (before expenses) at 1p per share. 

A pitting and trenching programme is currently being executed at Manso Amenfi where previously identified gold-in-soil anomalies yielded grades of up to 3.7 g/t in the soils.  The funds raised through the Placing will enable GoldStone to investigate Manso Amenfi further through a more expansive geological programme.  GoldStone has a joint venture with Asasemu Mining Limited over the Manso Amenfi project.  The Company currently has an interest of 10% and has the right to increase the interest to 85% in increments either by reaching certain benchmarks (achieving a Code-compliant resource of any magnitude and a feasibility study) or after spending an additional US$2 million in exploration on the project. 

GoldStone is continuing discussions with a number of interested parties for the monetisation of Homase/Akrokerri.  The funds raised through the Placing will provide the Company with sufficient time to investigate all of the options to conclude a suitable commercial outcome.  The intention of a monetisation of Homase/Akrokerri is to provide sufficient funds to advance the other projects significantly, particularly the Gabonese projects, thereby avoiding unnecessary dilution of shareholders' interests.  Homase/Akrokerri, which is the Company's most advanced project, has a gold resource of 602,000 oz at a grade of 1.77 g/t.

Since 1 March 2013, in an endeavour to conserve funds, the Executive Directors and the operational management agreed to defer 50% of their remuneration.  This will continue, regardless of the Placing, until a significant change in the Company's financial position has occurred.  It was announced on 26 July 2013 that the Executive Directors and management were willing to convert 50% of their deferred remuneration (net of tax) up to the end of the close period in respect of the Company's final results into shares at 1p per share.  Salaries deferred from September 2013 may, at the election of the Directors and management, be converted into shares subject to terms to be determined by the Remuneration Committee.  The Remuneration Committee is in the process of completing the conversion of remuneration into shares.  An announcement will be made as appropriate.  

Placing

GoldStone has received subscription letters for a total of 33,333,333 new ordinary shares ("the Placing Shares") at 1.5p per share, which represents a discount of approximately 14.3% to the closing price on 20 September 2013.  Through the Placing, the Company will raise £500,000(before expenses).

Unity Mining Limited, which is a substantial shareholder in GoldStone and which holds approximately 33.47% of the issued share capital immediately before the Placing, will have a holding of 30.61% in the Company following the Placing.  

Upon receipt of the funds, which are due on or before 14 October 2013, the Placing Shares will be allotted and application be made for the Placing Shares to be admitted for trading on AIM, which is expected to take place on or before 15 October 2013.

Following the Placing, there will be 389,137,771 ordinary shares of 1p each in issue.

Jurie Wessels, Chief Executive Officer of GoldStone, commented:

"The funds will enable us to investigate our projects to a greater extent than was previously possible.  Manso Amenfi, which has significant geological promise, will be investigated more extensively than was previously possible.  The funds, which have been raised at a significant premium to the previous placing, will also provide us with sufficient time to investigate all of our options to complete a monetisation or commercialisation of Homase/Akrokerri.  We will continue with our austerity measures regardless of this placing until an appropriate time."

Enquiries

GoldStone Resources Limited	[phone]
Jurie Wessels
W H Ireland Limited	[phone]
Tim Feather

 

END

 

 

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