16th Mar 2020 15:31
(Alliance News) - Goldstone Resources Ltd on Monday said it has raised GBP3.4 million to fund work on the Akrokeri-Homase gold project in Ghana's Ashanti region.
Goldstone is issuing 26 14% unsecured bonds of USD50,000 each both new and existing investors, to raise around GBP1.0 million. These have been issued to Paracale Gold Ltd and BCM Investments Ltd.
Further, it has signed a 14% secured gold loan of up to 2,000 troy ounces at USD1,500 per ounce, equating to GBP2.4 million. This has been signed with Asian Investment Management Services Ltd.
Of this, USD300,000 is available straight away with the rest made available when Goldstone signs formal legal documentation and grants security over its assets.
This financing, Goldstone said, will enable it to start mining the Homase South pit and also start building the heap leach plant.
Chief Executive Emma Priestley said: "I am very pleased to announce this USD4.3 million funding package and welcome AIMS as a co-investor alongside Paracale 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 Akrokeri-Homase and move into production and achieve cashflows during 2020."
Goldstone shares were 8.7% lower on Monday afternoon in London at 2.10 pence each.
By George Collard; [email protected]
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