Source - LSE Regulatory
RNS Number : 3194M
Goldstone Resources Ltd
20 September 2021
 

20 September 2021

 

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

 

Extension of Gold Loan

 

GoldStone Resources Limited (AIM: GRL) is pleased to announce that Asia Investments Management Services Limited ("AIMS") has agreed to extend the maturity date on the US$3 million secured gold loan announced on 22 June 2020 (the "Gold Loan") to 31 August 2022 (the "Extension").   The Extension restructures the repayment obligations to enable the Company to ramp up production.  The Company retains the right to repay the Gold Loan early without penalty. 

 

Interest will continue to accrue at the default rate of 17% until January 2022, then will revert to the original interest rate of 14% until maturity.  In conjunction with the Extension, the Company has agreed a repayment schedule for the Gold Loan and accrued and ongoing interest, as set out below:

 

Month

Gold Loan payments (in kilos of gold)

October 2021

5

November 2021

6

December 2021

8

January 2022

8

February 2022

8

March 2022

8

April 2022

8

May 2022

8

June 2022

8

July 2022

8

August 2022

7.4

 

In the event that any payment is not made when due in accordance with the agreed repayment schedule, this will be deemed an event of default.  Any interest that is not paid when due will accrue interest at the default rate of 17% until payment.

 

Related Party Transaction

AIMS is a substantial shareholder of the Company, with an interest of approximately 27.71% of the Company's ordinary shares, and is therefore a related party of the Company as defined in the AIM Rules for Companies ("AIM Rules").

Accordingly, the Extension of the Gold Loan with AIMS, is deemed to be a related party transaction pursuant to Rule 13 of the AIM Rules and it is noted that the board of Goldstone considers, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms and conditions of the Extension are fair and reasonable insofar as the shareholders of the Company are concerned.

 

- ENDS-

 

For further information, please contact:

 

GoldStone Resources Limited

 

Bill Trew / Emma Priestley

Tel: +44 (0)1534 487 757

Strand Hanson Limited

 

James Dance / James Bellman

Tel: +44 (0)20 7409 3494

S. P. Angel Corporate Finance LLP

 

Ewan Leggat / Charlie Bouverat 

Tel: +44 (0)20 3470 0501

 

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted exploration and development company with projects in Ghana that range from grassroots exploration to development.

 

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 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.  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.

 

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.

 

 

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