The directors of the company are mindful of the need to progress Goldstone Resources’ Homase‐Akrokerri project in Ghana that hosts an existing 602 000 oz gold JORC code compliant resource at an average grade of 1.77 g/t.
Following completion of the placing and subscription in July 2016 and the subsequent work programme Goldstone Resources now needs to raise funds in the near term for general working capital purposes. [quote]
“Paracale Gold shares our vision for the development of the Homase‐Akrokerri project. In what remains a challenging market for the natural resource sector, we welcome and value the support and credentials of Paracale Gold, who we believe will be a long‐ term strategic investor in the company,” says Goldstone Resources chairman Neil Gardyne.
Summary terms of the loan
The £400 000 loan, will have £200 000 available for immediate draw down. Subject to shareholder approval, a further £200 000 will be drawn down in full within three business days of the Goldstone Resources’ 2017 AGM which is to be held no later than 31 July 2017.
The loan will be used for essential corporate purposes, including renewal of licences and a review of existing data for all the projects, with the initial focus on the Homase‐Akrokerri project. Following review, further funding will be required to advance Goldstone Resources projects.
The loan, together with the company’s existing cash resources, are expected to provide funds for 6‐9 months, depending on the rate of spend. Prior to conversion or repayment, Goldstone Resources will not be able to enter into any material agreement, settle any litigation or take on any additional debt without the prior consent of Paracale Gold.
Paracale Gold has the right to appoint a non‐executive director following the initial draw down of £200 000 pursuant to the loan. Following conversion, for so long as Paracale Gold controls the exercise of not less than 20% of the voting rights of the company, it shall be entitled to remove and replace such director, subject to consent of the company’s nominated adviser.
Paracale Gold has entered into a relationship agreement with Goldstone Resources and Strand Hanson, the company’s nominated adviser, that will come into effect following conversion and remain in effect for so long as Paracale Gold controls the exercise of not less than 20% of the voting rights of the company.
Dr Bob Foster has decided to step down from the board of Goldstone Resources from his position as a non‐executive director to focus on other business interests.
“On behalf of the board, we would like to sincerely thank Bob Foster for his time and many contributions to Goldstone. Foster has had a significant impact while at Goldstone, especially in understanding the potential for the Homase and Akrokerri project in Ghana, and we are sorry to see him go,” says Gardyne.
The directors continue to monitor and manage the company’s working capital position very carefully and have, in order to preserve cash and subject to the required authorities being granted by shareholders at the AGM, agreed to convert accrued and future salaries and fees through to the end of September 2017 for all directors into new ordinary shares.