TIDMGRL
RNS Number : 3346B
Goldstone Resources Ltd
30 September 2022
30 September 2022
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Interim Results for the six months ended 30 June 2022
GoldStone Resources Limited (AIM: GRL), the AIM quoted gold
exploration and development company focused on bringing the Homase
Mine within its Akrokeri-Homase Gold Project ("AKHM") in Ghana into
production, announces its unaudited interim results for the
six-month period ended 30 June 2022 (the "Period").
Chief Executive Officer's Statement
During H12022, the Company has seen steady progress as we look
to develop and optimise our inaugural gold mining operation at
Homase, at the same time, developing a substantial gold resource
base which will support a significant, long-term and profitable
mining operation at the Akrokeri-Homase Project, located in the
world class Ashanti Belt in Ghana.
GoldStone achieved its first milestone of pouring first gold
November 2021 following the construction of the initial stage of
the mine, which includes a crushing, sizing, agglomeration and
stacking unit, three heap leach pads, a carbon-in-column plant, and
an elution and gold room. While the first gold pour was a huge
step-forward for GoldStone, it quickly became apparent that
significant optimisation work was required in order to enhance
recoveries due to agglomeration issues.
The team immediately commenced detailed test work and cost
analysis to further understand the leach kinetics to optimise the
recovery of the remaining contained gold in the heap. This work
informed the reconfiguration of the agglomeration and crushing
circuit to handle the excess clay encountered and the greater than
expected amount of silt originating from the oxide orebody's
fragile phyllitic content. A modified screening system has been
designed and built to control the feed sizing, with the fines
(<3mm) which represents approximately 20% of the ore body being
removed, which and will be fed initially to a gravity recovery
circuit. These improvements are being made to the circuit as
quickly as possible and should all be completed before the year
end.
This work programme has had the desired effect, in that
recoveries are now consistently moving in the right direction,
however our ability to regain some lost ground from our initial
production target has been further frustrated by a very extreme and
prolonged rainy season, which has significantly curtailed our
stacking from June 2022 to date. The Company has produced 4,095 oz
of gold to date, and whilst the Company continues to target
production of 14,000oz by the end of 2022, in light of the
circumstances described above the Board's minimum expectation for
production for the year is revised to 7,000oz. A review of the
production schedule to the calendar year-end and beyond is ongoing
and further updates on production will be provided in due
course.
Whilst disappointing, this will be a familiar account for many
experienced mining investors, with the oft-cited
"teething-problems" which accompany many new mining operations. The
message here is that the direction of travel is clear, and we have
a capable and committed team on the ground, using practical and
learned experiences to ensure that our production trajectory
continues improving on a monthly basis.
GoldStone continues to focus on resource expansion, and
subsequent conversion to mineable resources requiring additional
geotechnical drilling which has been undertaken within the first
two pits, which subject to the results and subsequent permitting,
The results from the geotechnical drilling have been received from
ALS Certified Laboratory and analysis and modelling are currently
being undertaken and will be announced shortly by the Company.
GoldStone has also undertaken grade control drilling for the
third pit within the Homase Mine to determine the pit planning and
to potentially expand the mineable resource inventory. The results
of the drilling have been received and the modelling of this third
pit is currently underway a press release on this will follow in
the next few weeks.
The Akrokeri Licence is the primary exploration focus of our
geological team,who are working with the aim of adding a further
shallow high grade deposit capable of being added to the mineable
resources of the Company. This effort is currently centred on the
former Akrokeri Underground Mine and surrounding area. During the
period, our geological team continued with the reassessment of the
previous drilling campaigns at the former mine workings, undertaken
by Birim Goldfields Ltd ("Birim") in 1996 and Pan African Resources
Ltd ("Pan African Resources") in 2008. Also, an assessment of
several former artisanal mine working areas, have been reviewed and
built into the database along with recent exploration work and
consolidating historical geological reports that reference not just
the Akrokeri Mine but other historical exploration targets in the
vicinity of the Akrokeri Mine.
Post period end, on 30 August 2022, we commenced a 1,500m
Diamond Drilling programme at Akrokeri with the aim of advancing
high-priority gold targets towards production. Akrokeri benefits
from both the right geological setting, being approximately 12km
NNE and along strike from the Obuasi Mine, owned by AngloGold
Ashanti Ltd, and its potential is supported by verified accounts of
historical production, reported to be some 75,000 ounces of gold
from some 104,000 tons (94,347 tonnes) of ore, equating to an
average recovered grade equivalent to approximately 24g/t.
The first three-holes from this programme have delivered highly
encouraging results, demonstrating significant intersections and
confirming the continuity of the mineralised zone along strike of
the former Akrokeri Mine. Significant intersections to date
include:
- 22AKDD001: 6.5 metres @ 1.63g/t from 7.7 metres, including 3.5 metres @ 2.35g/t
- 22AKDD002: 4.1metres @ 11.01g/t from 46 metres, including 1metre @ 41.04g/t
- 22AKDD003: 3.6 metres @ 5.77g/t from 69.4 metres, including 1metre @ 12.06g/t
Holes 22AKDD002 and 3 were inclined at 55(o) and one at 75(o)
respectively and intersected the mineralised zone at vertical
depths between 37 m and 66 m beneath surface. All three holes
intersected significant widths of approximately 2.2 metres
mineralisation, thus confirming the continuity of the zone along
strike and with depth.
This is a very encouraging start to the programme, and we look
forward to providing further updates over the coming weeks.
Corporate and Financial Review
Losses from operations for the six months to 30 June 2022 were
US$0.29 million (H1 2021: loss of US$0.55 million). It is noted
that, were it not for the theft of gold concentrate announced on 29
June 2022, estimated to be US$350,000 in value, the Company would
have reported an operating profit.
The financial statements at year end show the Group's balance
sheet, with net assets standing at US$16.0 million (H1: US$15.5
million).
Cash and cash equivalents as at 30 June 2022 were US$0.9 million
(H1 2021: US$1.5 million).
As announced earlier today, post period end, the Company has
agreed a variation in respect of the gold loan entered into with
Asian Investment Management Services Limited ("AIMS") announced on
22 June 2022 (the "Gold Loan"). Pursuant to this variation, the due
date for repayment of the principal and outstanding interest is
extended to 30 September 2023, interest on the Gold Loan will
continue to accrue at 14% per annum, and the Company is able
(though not obliged) to repay any part of the Gold Loan and/or
accrued interest thereon from time to time by way of instalments.
As at 30 September 2022, the outstanding principal of the Gold Loan
currently stands at 1,924.61 oz, with accrued interest to date of
124.37 oz. A total of 675.17 oz (21 kilos) of gold to date has been
paid to AIMS to date in respect of the Gold Loan.
As previously reported, in June 2022 the Group suffered an armed
robbery at site which resulted in the loss of gold, with a value of
approximately US$350k. The Group was not in a position to make an
announcement which was compliant with the AIM Rules, which led to a
suspension in the trading of its ordinary shares on the AIM market
on 10 June 2022 whilst an investigation was launched by the
authorities in Ghana. The suspension was lifted following the
Company's 29 June 2022 announcement.
With the revenue now being generated from our gold production
together with the further funds from the exercise of warrants in
June 2022, we can continue with the current level of operations.
However, further funding may be required to accelerate the ramp-up
of production at Homase and the exploration programme at
Akrokeri.
Outlook
It is with cautious optimism that I look forward to the
remaining months of 2022 and into 2023, as we continue to make
stead progress towards achieving our production goals. H1 2022 has
been a difficult period of hard-won lessons, but these lessons have
been valuable as we continue to inform, improve, and expand our
gold production profile at Homase, and pave the way for what we
believe will be a second mining operation at Akrokeri.
I would like to take this opportunity to thank my fellow Board
members, our operational team in Ghana and of course our
shareholders for their continued support this year, and I look
forward to reporting on our progress moving forward.
Emma Priestley
Chief Executive Officer
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
St Brides Partners Limited Tel: +44 (0) 20 7236 1177
Susie Geliher / Catherine Leftley
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 (as amended).
**S**
Consolidated statement of financial position
as at 30 June 2022
30 June 30 June 31 December
in united states dollars notes 2022 2021 2021
unaudited unaudited audited
Assets
property, plant and equipment 6 21,794,616 20,926,500 21,280,257
total non-current assets 21,794,616 20,926,500 21,280,257
------------------------------ ------- ------------ ------------ ------------
inventory 909,192 - 1,959,083
trade and other receivables 273,655 85,102 257,013
cash and cash equivalents 927,702 1,537,600 336,524
------------------------------ ------- ------------ ------------ ------------
total current assets 2,110,549 1,622,702 2,552,620
------------------------------ ------- ------------ ------------ ------------
total assets 23,905,165 22,549,202 23,832,877
------------------------------ ------- ------------ ------------ ------------
Equity
share capital - ordinary
shares 6,559,310 5,742,974 6,383,213
share capital - deferred
shares 6,077,013 6,077,013 6,077,013
share premium 33,887,579 31,400,794 33,535,384
foreign exchange reserve (1,158,177) 6,684 (1,332,396)
capital contribution reserve 555,110 555,110 555,110
share options reserve 3,535,197 3,535,197 3,535,197
accumulated deficit (33,406,173) (31,783,539) (32,758,006)
------------------------------ ------- ------------ ------------ ------------
total equity 16,049,859 15,534,233 15,995,514
------------------------------ ------- ------------ ------------ ------------
Liabilities
provision for rehabilitation 901,284 901,284 901,284
non-current liabilities 901,284 901,284 901,284
trade and other payables 2,140,112 593,558 1,395,222
borrowings 7 4,813,910 5,520,127 5,540,857
------------------------------ ------- ------------ ------------ ------------
current liabilities 6,954,022 6,113,685 6,936,079
------------------------------ ------- ------------ ------------ ------------
total liabilities 7,855,306 7,014,969 7,837,363
------------------------------ ------- ------------ ------------ ------------
total equity and liabilities 23,905,165 22,549,202 23,832,877
------------------------------ ------- ------------ ------------ ------------
Consolidated statement of comprehensive income
for the 6 months ended 30 June 2022
6 months 6 months ended year ended
ended 30 June 2021 31 December
in united states dollars notes 30 June 2022 2021
unaudited unaudited audited
continuing operations
revenue 5,250,298 - -
cost of sales (3,157,003) - -
------------------------------- ------- ------------- -------------- ------------
gross profit 2,093,295 - -
administrative expenses (2,380,665) (548,628) (794,208)
------------------------------- ------- ------------- -------------- ------------
operating loss (287,370) (548,628) (794,208)
finance expense (360,797) - (728,887)
------------------------------- ------- ------------- -------------- ------------
net finance cost (360,797) - (728,887)
------------------------------- ------- ------------- -------------- ------------
loss before and after tax
from continuing operations 5 (648,167) (548,628) (1,523,095)
------------------------------- ------- ------------- -------------- ------------
Items that may be reclassified
subsequently to profit and
loss:
foreign exchange translation
movement 174,219 88,833 (1,250,247)
------------------------------- ------- ------------- -------------- ------------
total comprehensive loss
for the period (473,948) (459,795) (2,773,342)
------------------------------- ------- ------------- -------------- ------------
loss per share from operations
basic and diluted earnings
per share attributable to
the equity holders of the
company during the period
(expressed in cent per share) 4 (0.002) (0.002) (0.004)
------------------------------- ------- ------------- -------------- ------------
Consolidated statement of changes in equity
for the 6 months ended 30 June 2022
share share foreign
in united capital capital exchange capital share
states ordinary deferred share reserve contribution options accumulated total
dollars shares shares premium reserve reserve deficit equity
------------- ---------- ---------- ----------- ------------ ------------- ---------- ------------- ------------
balance as
at 1
January
2021 3,913,963 6,077,013 28,080,853 (82,149) 555,110 3,535,197 (31,234,911) 10,845,076
total loss
for the
period - - - - - - (548,628) (548,628)
translation
movement - - - 88,833 - - - 88,833
share
warrants
exercised
in period 1,776,839 - 3,037,133 - - - - 4,813,972
share issue
in period 52,172 - 282,808 - - - - 334,980
------------- ---------- ---------- ----------- ------------ ------------- ---------- ------------- ------------
balance as
at 30 June
2021 5,742,974 6,077,013 31,400,794 6,684 555,110 3,535,197 (31,783,539) 15,534,233
------------- ---------- ---------- ----------- ------------ ------------- ---------- ------------- ------------
total loss
for the
period - - - - - - (245,580) (245,580)
translation
movement - - - (1,339,080) - - - (1,339,080)
loan
derivative
movement - - - - - - (728,887) (728,887)
share
warrants
exercised
in period 414,876 - 330,007 - - - - 744,883
share issue
in period 225,363 - 1,804,583 - - - - 2,029,946
balance as
at 31
December
2021 6,383,213 6,077,013 33,535,384 (1,332,396) 555,110 3,535,197 (32,758,006) 15,995,515
------------- ---------- ---------- ----------- ------------ ------------- ---------- ------------- ------------
total loss
for the
period - - - - - - (648,167) (648,167)
translation
movement - - - 174,219 - - - 174,219
share
warrants
exercised
in period 176,097 - 352,195 - - - - 528,292
balance as
at 30 June
2022 6,559,310 6,077,013 33,887,579 (1,158,177) 555,110 3,535,197 (33,406,173) 16,049,859
------------- ---------- ---------- ----------- ------------ ------------- ---------- ------------- ------------
Consolidated statement of cash flow
for the 6 months ended 30 June 2022
6 months 6 months year ended
ended ended 31 December
in united states dollars 30 June 30 June 2021
2022 2021
unaudited unaudited audited
cash flow from operating activities
operating loss for the period/year (287,370) (548,628) (794,208)
adjusted for:
* depreciation 131,785 12,739 71,300
* foreign exchange differences - 88,833 164,170
changes in working capital: 864,615 (408,440) (462,499)
net cash used in operating activities 709,030 (855,496) (1,021,237)
========================================== ========= =========== ============
cash flow from investing activities
capitalisation of exploration costs - (746,640) (746,640)
acquisition of property, plant and
equipment (646,144) (2,066,238) (4,872,653)
net cash used in investing activities (646,144) (2,812,878) (5,619,293)
========================================== ========= =========== ============
cash flow from financing activities
repayment of loan - (344,362) -
redemption of bonds - (300,000) (300,000)
proceeds from share issue 528,292 5,148,952 6,575,670
net cash received from financing
activities 528,292 4,504,590 6,275,670
========================================== ========= =========== ============
net decrease in cash and cash equivalents 591,178 836,216 (364,860)
------------------------------------------ --------- ----------- ------------
cash and cash equivalents at beginning
of the period/year 336,524 701,384 701,384
------------------------------------------ --------- ----------- ------------
cash and cash equivalents at end
of the period/year 927,702 1,537,600 336,524
------------------------------------------ --------- ----------- ------------
Notes to the unaudited consolidated financial statement
1. General information
The financial statements present the consolidated results of the
Company and its subsidiaries (the "Group") for each of the periods
ending 30 June 2022, 30 June 2021 and 31 December 2021.
As permitted, the Group has chosen not to adopt International
Accounting Standard 34 'Interim Financial Reporting' in preparing
these interim financial statements. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2021,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) in accordance with UK-adopted IFRSs.
The unaudited interim financial information set out above does
not constitute statutory accounts. The information has been
prepared on a going concern basis in accordance with the
recognition and measurement criteria of International Financial
Reporting Standards (IFRS) in accordance with UK-adopted IFRSs.
Except as described below, the accounting policies applied in
preparing the interim financial information are consistent with
those that have been adopted in the Group's 2021 audited financial
statements. Statutory financial statements for the year ended 31
December 2021 were approved by the Board of Directors on 29 June
2022 and delivered to the Registrar of Companies. The report of the
auditors on those financial statements was unqualified. The
Directors approved these unaudited condensed interim financial
statements on 30 September 2022.
There are no IFRSs or IFRIC interpretations that are effective
for the first time for the financial year commencing 1 January 2022
that would be expected to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2022
and the 6 months ended 30 June 2021 have not been audited.
The business is not subject to seasonal variations. No dividends
have been paid in the period (2021: US$ Nil).
2. Risks and uncertainties
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2021 Annual
Report and Financial Statements, a copy of which is available on
the Company's website: www.goldstoneresources.com .The Group's key
financial risks are the availability of adequate funding and
foreign exchange movements.
3. Critical accounting estimates and judgements
The preparation of the unaudited condensed consolidated interim
financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period. Significant items subject to such
estimates are set out in note 2(d) of the Group's 2021 Annual
Report and Financial Statements. The nature and amounts of such
estimates have not changed significantly during the interim period.
The unaudited condensed consolidated interim financial statements
have been prepared under the historical cost convention as modified
by the measurement of certain investments at fair value.
4. Earnings per share
6 months ended 6 months ended year ended
30 June 30 June 31 December
in united states dollars 2022 2021 2021
unaudited unaudited audited
loss attributable to shareholders (648,167) (548,628) (1,523,095)
weighted average number
of ordinary shares 360,234,874 271,403,038 353,369,120
================================== ============== ============== ============
basic and diluted earnings
per share (0.002) (0.002) (0.004)
================================== ============== ============== ============
5. Operating segments
The Group has two reportable segments, exploration and
corporate, which are the Group's strategic divisions. For each of
the strategic divisions, the Group's CEO, deemed to be the Chief
Operating Decision Maker ("CODM"), reviews internal management
reports on at least a monthly basis. The Group's reportable
segments are:
Exploration and Evaluation: the exploration operating segment is
presented as an aggregation of the Homase and Akrokeri licences
(Ghana). Expenditure on exploration activities for each licence is
used to measure agreed upon expenditure targets for each licence to
ensure the licence clauses are met.
Corporate: the corporate segment includes the holding company
costs in respect of managing the Group. There are varying levels of
integration between the corporate segment and the combined
exploration activities, which include resources spent and accounted
for as corporate expenses that relate to furthering the exploration
activities of individual licences.
information about reportable segments for the year ended 31
December 2021
in united states dollars exploration corporate total
-------------------------------- ------------ ---------- ------------
reportable segment expenditure (1,236,963) (286,132) (1,523,095)
================================= ============ ========== ============
reportable segment (loss) (1,236,963) (286,132) (1,523,095)
================================= ============ ========== ============
reportable segment assets 23,558,117 274,760 23,832,877
================================= ============ ========== ============
reportable segment liabilities 2,066,460 5,770,903 7,837,363
================================= ============ ========== ============
information about reportable segments for the period ended 30
June 2021
in united states dollars exploration corporate total
-------------------------------- ------------ ------------ ------------
reportable segment expenditure - (548,628) (548,628)
================================= ============ ============ ============
reportable segment (loss) - (548,628) (548,628)
================================= ============ ============ ============
reportable segment assets 20,986,537 1,562,665 22,549,202
================================= ============ ============ ============
reportable segment liabilities (1,109,658) (5,905,311) (7,014,969)
================================= ============ ============ ============
information about reportable segments for the period ended 30
June 2022
in united states dollars exploration corporate total
---------------------------------- ------------ ------------ ------------
reportable segment revenue 5,250,298 - 5,250,298
=================================== ============ ============ ============
reportable segment cost of sales (3,157,003) - (3,157,003)
=================================== ============ ============ ============
reportable segment expenditure (2,012,075) (368,590) (2,380,665)
=================================== ============ ============ ============
reportable segment profit/(loss) 81,223 (729,390) (648,167)
=================================== ============ ============ ============
reportable segment assets 23,657,473 247,692 23,905,165
=================================== ============ ============ ============
reportable segment liabilities (2,698,423) (5,156,883) (7,855,306)
=================================== ============ ============ ============
6. Property, plant and equipment
plant
and equipment
in united states gold and motor assets under producing
dollars samples vehicles construction mines total
----------------------- --- --------- --------------- ----------------- ------------- -------------
Cost
1 January 2021 4,570 763,652 - - 768,222
transfers from
intangibles - - 15,086,412 - 15,086,412
additions - 451,533 4,421,120 - 4,872,653
increase in provision
for rehabilitation - - 901,284 - 901,284
31 December 2021 4,570 1,215,185 20,408,816 - 21,628,571
transfer to producing
mine - - (20,408,816) 20,408,816 -
additions - 32,868 - 613,276 646,144
30 June 2022 4,570 1,248,053 - 21,022,092 22,274,715
================================ ========= =============== ================= ============= =============
plant
and equipment
in united states gold and motor assets under producing
dollars samples vehicles construction mine total
------------------ ---- ---------- --------------- ---------------- ------------ --------------
Depreciation
1 January 2021 - 277,014 - - 277,014
charge for the
year - 71,300 - - 71,300
---------------------------- -------- --------------- ---------------- ------------ --------------
31 December 2021 - 348,314 - - 348,314
charge for the
period - 33,995 97,790 131,785
30 June 2022 - 382,309 - 97,790 480,099
============================ ======== =============== ================ ============ ==============
Net Book Value
31 December 2021 4,570 866,871 20,408,816 - 21,280,257
30 June 2022 4,570 865,744 - 20,924,302 21,794,616
==================== ====== ======== =========== =========== ===========
7. Borrowings
6 months ended 6 months ended year ended
30 June 30 June 31 December
in united states dollars 2022 2021 2021
unaudited unaudited audited
shareholder loan 765,012 1,041,282 742,587
gold loan 2,868,001 3,478,845 3,769,500
derivative 880,897 - 728,770
bonds 300,000 1,000,000 300,000
--------------------------- -------------- -------------- ------------
current borrowings 4,813,910 5,520,127 5,540,857
=========================== ============== ============== ============
total borrowings 4,813,910 5,520,127 5,540,857
=========================== ============== ============== ============
Shareholder loan
The Company entered into a loan agreement with Paracale Gold
Limited ("Paracale"), the Company's major shareholder, in December
2018, for a loan of up to US$1.2 million.
In consideration of entering into the loan agreement, Paracale,
were issued with 40,352,377 warrants to subscribe for such number
of ordinary shares of 1 penny each in the capital of the Company
("Ordinary Shares") at an exercise price of 1.2p per share, at any
time during the period through to 2 June 2022. As at 30 June 2022,
Paracale had exercised all of their warrants.
Gold Loan
The Company entered into a loan agreement with Asian Investment
Management Services Limited ("AIMS") in June 2020, for a gold loan
of up to 2,000 troy ounces of gold at a price of US$1,500 per troy
ounce, equating to a value of US$3.0 million before expenses. AIMS
and the Company had agreed during 2021 to further extension to the
timing of payment of the principal and interest on the Gold Loan,
to 19 September 2021 (being the maturity date of the Gold Loan)
(the "Extension"), although at the default interest rate of 17%.
Interest therefore accrued at the default rate of 17%.
In January 2022, a payment of 19kg of gold was made in order to
repay the interest due for October, November and December 2021.
This payment was against the principal and accrued interest, with
the interest paid in full and reducing the principal from 2,000 oz
to 1,924.61 oz.
It was further agreed with AIMS that in order to enable the
Company to efficiently manage shipments, it would not be deemed an
event of default if the monthly payments set out in the Company's
announcement on 20 September 2021 were not made at the end of each
month.
On 29 September 2022, it was agreed with AIMS to vary the terms
of the Agreement as follows:
-- the date for repayment of the Gold Loan shall be extended to
30 September 2023 (the "Revised Term") and the Maturity Date stated
in Schedule 1 of the Agreement shall be amended accordingly;
-- interest shall continue to accrue on the Gold Loan at the
non-default rate of 14% per annum until the date of repayment;
and
-- the Company may (but shall not be obliged to) repay any part
of the Gold Loan and/or accrued interest thereon from time-to-time
by way of instalments during the Revised Term.
The outstanding principal of the Gold Loan currently stands at
1,924.61 oz, with accrued interest to date of 124.37 oz. A total of
675.17 oz (21 kilos) of gold to date has been paid to AIMs to date
in respect of the Gold Loan.
Bonds
In March 2020, the Company issued twenty six unsecured bond
notes of US$50,000 each to certain existing and new investors,
raising, in aggregate, US$1.3 million before expenses. Paracale
Gold and Nguvu Holdings Limited (formerly BCM Investments Limited),
the Company's major shareholders, each subscribed for six bonds
with a value of, in aggregate, US$0.3 million respectively. During
2021, twenty of the bond notes were redeemed for cash or shares, as
announced on 12 July 2021.
During the period 14,000,000 warrants were exercised for new
ordinary shares of 1 penny each in the capital of the Company at a
price of 3 pence per Ordinary Share, and this Warrant Exercise
provided GBP420,000 of additional funding to the Company.
Additionally, Nguvu Holdings Limited (formerly known as BCM
Investments Limited) ("Nguvu") gave notice to the Company in late
May 2022 of its intention to exercise 6,000,000 of the 12,000,000
warrants it held to subscribe for Ordinary Shares at a price of 3
pence per Ordinary Share (the "Nguvu Warrants"), but Nguvu was
unable to provide a signed notice of exercise before the Company
entered into a close period pending publication of the annual
report and accounts of the Company for the year ended 31 December
2021. As Angela List, a director of the Company, is a director of
and shareholder in Nguvu, the Nguvu Warrants, which had an expiry
date of 22 June 2022, could not be exercised during this close
period. Accordingly, the Board of the Company resolved to extend
the exercise period of the Nguvu Warrants by two weeks, to expire
at midnight on 6 July 2022 (the "Warrant Extension").
The remaining 6 million Warrants held by Nguvu expired at
midnight on 22 June 2022.
8. Post Period End
The Company commenced, on 30 August 2022, a 1,500m Diamond
Drilling programme at Akrokeri to advance high-priority gold
targets towards production. Akrokeri benefits from both the right
geological setting, being approximately 12km NNE and along strike
from the Obuasi Mine, owned by AngloGold Ashanti Ltd, and its
potential is supported by verified accounts of historical
production, reported to be some 75,000 ounces of gold from
approximately 104,000 tons (94,347 tonnes) of ore, equating to an
average recovered grade equivalent to approximately 24g/t.
The first three-holes from this programme have delivered highly
encouraging results, demonstrating significant intersections and
confirming the continuity of the mineralised zone along strike of
the former Akrokeri Mine. Significant intersections to date
include:
- 22AKDD001: 6.5 metres @ 1.63g/t from 7.7 metres, including 3.5 metres @ 2.35g/t
- 22AKDD002: 4.1metres @ 11.01g/t from 46 metres, including 1metre @ 41.04g/t
- 22AKDD003: 3.6 metres @ 5.77g/t from 69.4 metres, including 1metre @ 12.06g/t
Holes 22AKDD002 and 3 were inclined at 55(o) and one at 75(o)
respectively and intersected the mineralised zone at vertical
depths between 37 m and 66 m beneath surface. All three holes
intersected significant widths of approximately 2.2 metres
mineralisation, thus confirming the continuity of the zone along
strike and with depth. The Company is currently analysing and
modeling the minable resources following receipt of the drilling
results from the second and third pits of the Homase Mine.
On 8 July 2022, the Company announced the issue of 9,600,000 new
Ordinary Shares pursuant to an exercise of warrants and bond
settlement agreement.
On 13 July 2022, the Company announced the issue of 9,802,821
new Ordinary Shares pursuant conversion to a loan conversion by
Paracale Gold Limited.
9. Availability of interim report
The interim report is available on the Company's website
www.goldstoneresources.com.
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END
IR VBLBXLKLLBBF
(END) Dow Jones Newswires
September 30, 2022 04:30 ET (08:30 GMT)
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