Stratex International plc (LON:STI) has agreed to increase the loan it has provided to Goldstone Resources (LON:GRL) from US$100,000 to US$350,000.
All other terms of the loan, which was originally arranged in mid-April, remain the same – the loan is repayable in December 2016 and interest is charged at 5% per annum, payable quarterly in arrears.
Goldstone will use the money for general working capital as it continues to progress its portfolio of West African gold projects, and to provide settlement to former chief executive Jurie Wessels who has announced he is to step down as part of an “amical separation.”
Stratex is Goldstone’s largest shareholder, with just over 33% of the company, and it also controls the board, with chairman Chris Hall as non-exec chairman of Goldstone and chief executive Bob Foster also as non-executive.
In addition, Stratex director Emma Priestly remains as the only executive on the board of Goldstone.
Goldstone’s shares dropped by around 7% at the open to 4p, while Stratex’s shares dipped just under 4% to 1.92p.