GoldStone Resources Limited (AIM:GRL) , has raised US$4.3m, which will take the Akrokeri-Homase Gold Project into production.
The Fundraise comprises the issue of Bonds with a value of, in aggregate, US$1.3 million before expenses and, subject to, inter alia, further documentation and the grant of security over the assets of the Company, the issue of the Gold Loan for up to 2,000 troy ounces at a price of US$1,500 per troy ounce, equating to a value of US$3.0 million before expenses. The Company will grant a total of 172,000,000 warrants pursuant to the Bond and Gold Loan, all of which will be exercisable at 3 pence per Ordinary Share. Agreement has also been reached with Cherry Hill Mining Limited has relinquished its remaining 10% interest in the Homase licence in exchange for a 2% royalty of gold sales generated, less all costs and taxes and duties in accordance with the joint venture agreement.
The Fundraise will enable the Company to start mining the Homase South Pit and construct the heap leach plant. Application for the environmental permit has already been submitted and expected to be approved within the next three months, at which point, open pit mining operations will commence.
Investors in Goldstone have begun to recognise the progress being made with the shares trading from 1.6p to 2.6p over the past 3 months.
Emma Priestley, CEO of GoldStone, commented: "I am very pleased to announce this US$4.3 million funding package and welcome AIMS as a co-investor alongside Paracale Gold and BCM, who have continued to support this project. Supporting the existing shareholders, AIMS have recognised the growth opportunity that the development of the AKHM project will bring to the Company and the Board thanks them for their support. I look forward to updating shareholders in due course as we progress the development of AKHM and move into production and achieve cashflows during 2020."
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