LONDON (Alliance News) - Goldstone Resources Ltd on Thursday said it has conditionally raised GBP1.0 million through a share placing and subscription and through a settlement of an existing loan with Stratex International PLC, as its chairman announced his resignation.
Shares in Goldstone were down 1.2% at 2.84 pence on Thursday.
Goldstone said it raised GBP809,000 in the placing and subscription of 32.4 million shares at 2.50 pence per share with new and existing investors.
Stratex continues to hold a 33.4% stake in Goldstone, having subscribed for 5.7 million shares of the shares made available.
Red Rock Resources PLC bought 3.9 million of the subscription shares, meaning its stake in Goldstone also remained the same, at 9.645%.
The remaining GBP191,000 was raised in relation to the settlement of the GBP191,000 loan provided by Stratex into 7.6 million shares, Goldstone said. The GBP191,000 is the amount drawn down to date on the short-term loan facility.
Goldstone said it will use the funds to advance its existing projects, including undertaking reverse circulation drilling on its main project Homase-Akrokerri as well as assess other strategic opportunities.
"There was a significant contribution from new investors encouraged by the improving market conditions for junior exploration companies and no doubt following the recent appointment of Emma Priestley as chief executive offer. As a result, the fundraise provides the company with a strengthened balance sheet and impetus to advance its projects in Ghana," said Non-Executive Chairman Christopher Hall.
Hall said he will be resigning from his position following the company's annual general meeting and said Non-Executive Director Neil Gardyne will succeed him.
Shares in Stratex were up 1.1% at 2.15p on Thursday morning, and shares in Red Rock were up 4.9% at 0.419p.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Goldstone Resources (GRL)
Red Rock Resources (RRR)