Last checked at 16 Nov 2023 07:00
16 November 2023
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Gold Loan Update and Issue of Formal Default Notice
GoldStone Resources Limited (AIM: GRL) announces, further to its announcement of 13 November 2023, that the Company has yesterday received a letter from its principal secured creditor, Asian Investment Management Services Limited (the "Secured Creditor"), which contains, inter alia, the formal default notice regarding the outstanding Gold Loan (the "Letter"). As a result, the Company has 14 business days from the date of the Letter, ending at midnight on 4 December 2023 to pay the amount due, following which the Secured Creditor will be entitled to enforce its security on the terms of the pledge agreement dated 19 June 2020, being the date on which the Gold Loan facility was made available to the Company.
The Letter further states that the Secured Creditor's preference is to cooperate with the Company's board of directors to resolve the matter without enforcement action being taken and the Board is in ongoing discussions with the Secured Creditor to achieve such a resolution.
The Board continues to take appropriate professional advice and to actively seek solutions for the repayment of the Gold Loan. As of 15 November 2023, the Company owes the Secured Creditor 2,398.32 fine gold ounces.
In the event that a consensual resolution cannot be agreed with the Secured Creditor regarding the repayment or rescheduling of the outstanding balance of the Gold Loan, security over the Company's primary assets may be invoked or other action taken with regards to the trading position of the Company.
The Company's Ordinary Shares will remain suspended from trading on AIM until such time as it has satisfied the requirements of AIM Rule 19 with respect to publication of its 2022 Accounts and AIM Rule 18 with regard to publication of its interim results for the six-month period to 30 June 2023, which were required to be published by 30 September 2023. In the event that both such accounts cannot be published by 31 December 2023, admission of the Company's Ordinary Shares to trading on AIM may be cancelled in accordance with the provisions of AIM Rule 41.
The Company will provide a further update(s) in due course as appropriate.
Unless otherwise defined herein, all capitalised terms in this announcement shall have the meanings assigned to them in the Company's announcements of 13 November 2023.
- ENDS-
For further information, please contact:
GoldStone Resources Limited |
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Bill Trew / Emma Priestley | Tel: +44 (0)1534 487 757 |
Strand Hanson Limited |
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James Dance / James Bellman | Tel: +44 (0)20 7409 3494 |
S. P. Angel Corporate Finance LLP |
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Ewan Leggat / Charlie Bouverat | Tel: +44 (0)20 3470 0501 |
St Brides Partners Ltd Susie Geliher / Max Bennett | Tel: +44 (0)20 7236 1177 |
About GoldStone Resources Limited
GoldStone Resources Limited (AIM: GRL) is an AIM quoted mining and development company with projects in Ghana that range from grassroots exploration to production.
The Company is focused on developing the Akrokeri-Homase project in south-western Ghana, which hosts a JORC Code compliant 602,000oz gold resource at an average grade of 1.77 g/t. The existing resource is confined to a 4km zone of the Homase Trend, including Homase North, Homase Pit and Homase South.
The project hosts two former mines, the Akrokerri Ashanti Mine Ltd, which produced 75,000 oz gold at 24 g/t recovered grade in the early 1900s, and the Homase Pit which AngloGold Ashanti developed in 2002/03 producing 52,000 oz gold at 2.5 g/t recovered. Production is currently focussed on the Homase Mine however it is the Company's intention to build a portfolio of high-quality gold projects in Ghana, with a particular focus on the highly prospective Ashanti Gold Belt.