14th Sep 2006 16:34
Goldstone Resources Ltd14 September 2006 GOLDSTONE RESOURCES LTD BAUXITE UPDATE In September 2005, GoldStone Resources Ltd ("GoldStone" or the "Company")entered into an option agreement with BHP Billiton over the Company's bauxiteinterests in Guyana. An initial programme was launched to explore the bauxitepotential in the lease areas. This programme, conducted during the last quarterof 2005 and continued into the first half of 2006, confirmed the depositspreviously identified by GoldStone and further, more detailed, sampling isplanned. BHP Billiton accordingly elected to make, and has now effected, payment of theoption fee of US$100,000 required to maintain the option until 6 June 2007. BHP Billiton must before 7 June 2007 choose whether to exercise the option torequire GoldStone to apply for such prospecting licences as may be permissibleunder the Bauxite Reconnaissance Permission. If BHP Billiton elects to exercisethe option and a requisite number of prospecting licences are granted toGoldStone, then upon transfer of the licences to BHP Billiton, GoldStone willreceive a further US$100,000. Potential payments thereafter are as follows: US$200,000 on the 1st anniversary of the transfer; US$1 million on the 2nd anniversary of the transfer; US$3 million on the 4th anniversary of the transfer; and US$8 million on the 7th anniversary of the transfer. Dr. Lawrie Minter, who holds a PhD in Palaeoplacer Sedimentology, has reviewedand approved the content of this announcement. Enquiries: GoldStone Resources Ltd +27 21 794 4004Nico van der Hoven (Chief Executive Officer) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Goldstone Resources