Last checked at 17 Apr 2009 15:40
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
URANIUM PROJECT AND LISTING UPDATE
The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") wish to provide the following update on the Company's proposed uranium project and listing on the Alternative Exchange ("AltX") of the JSE Ltd ("JSE")
DR3-EAST URANIUM PROJECT
During June 2008 GoldStone conditionally agreed to acquire up to a 100 per cent. interest in the DR3-East Uranium Project owned by Hymrai Properties 1 (Pty) Ltd ("Hymrai") (the "Acquisition Agreement"). Completion of the transaction with Hymrai was dependent on the receipt of approval by the South African Department of Minerals and Energy ("DME"), as well as the listing of GoldStone on the AltX. The DME has now approved the transaction, but this approval was received much later than expected by the Company.
LISTING ON THE ALTX
The listing of GoldStone on the AltX must occur within certain time limits set by the advisory committee of the JSE and is also subject to the JSE's Listing Requirements. As a consequence of the late receipt of DME approval and in order to complete the listing process GoldStone would have to make further representations to the advisory committee of the JSE and also include the audited financial results for the year ended February 2009 in its Pre-Listing Statement.
There is no certainty that the AltX would grant GoldStone the requisite approvals and further delays to the listing would be experienced as the audited financial information is prepared.
The Board is of the opinion that the uncertainty and delays are severely disrupting the ongoing exploration activities of the Company and has therefore resolved that the Company should no longer seek to list on the AltX.
LAPSING OF ACQUISITION AGREEMENT
As result of the Board's decision to discontinue the listing process, the Acquisition Agreement, which is conditional, inter alia, on the Company being listed on the AltX, is no longer capable of becoming unconditional.
Any future acquisition of an interest in the DR3-East Uranium Project by the Company could only become effective if the transaction complied with the requirements of the South African Reserve Bank ("SARB") as applicable to GoldStone.
These requirements specify that GoldStone may only make an investment in the Southern African Development Community, such as in the DR3-East Uranium Project, if GeoQuest Holdings Ltd. ("GeoQuest"), a major shareholder in GoldStone and a South African company, has divested of its interest in the Company or if GoldStone lists on a South African stock exchange. The Company therefore intends to explore with GeoQuest the potential for it to divest its interest in the Company. The Directors expect that such divestment would be achieved through the liquidation of GeoQuest with the result that (to the extent permissible under the regulations of the SARB) certain of the underlying non-South African shareholders of GeoQuest become the legal owners of GeoQuest's current holding of GoldStone shares.
The Company has cash resources of approximately US$1.2 million.
Enquiries:
Hanson Westhouse Limited +44 20 7601 6100
Tim Feather / Matthew Johnson