GoldStone agrees Bendigo alliance

GoldStone, the miner focused on gold in Ghana, Senegal and Gabon, has set up a strategic alliance with mid-tier Australian gold producer Bendigo Mining and is raising £2.1m from a share placing.The deal involves Bendigo buying 32.7m GoldStone shares at 6.5p each, giving it a 20% stake."We are extremely pleased that through this transaction GoldStone has gained a mid-tier miner with a strong balance sheet as a long term investor who is prepared to make a significant investment in the company at a material premium to the market price," said chief executive Jurie Wessels."We believe that Bendigo shares the optimism we have for our West African assets and that the alliance will add considerable value as we endeavour to advance our exploration projects into open cast or underground mining operations."Bendigo boss Rod Hanson said the agreement provides a low risk expansion into West Africa, "one of the most attractive locations for new gold discoveries globally".