12 April 2016
GOLDSTONE RESOURCES LIMITED
("GoldStone" or the "Company")
Corporate update and loan facility
GoldStone Resources Limited (AIM: GRL), the West and Central Africa focused gold exploration company quoted on AIM, provides an update to the market and to shareholders.
Given the prevailing commodity prices and market sentiment towards exploration companies, Goldstone has undertaken a number of initiatives to reduce costs and recalibrate the business in line with the current financial position of the Company. This has included seeking to reduce or eliminate a significant portion of the Company's day to day administration and running costs, including salaries and all Non-executive Directors and interim CEO's fees having been waived going forward.
In addition, the Company is undertaking limited exploration activities, consisting mainly of work to keep its licences in good standing, and following the recent changes to the Company's board of directors ("Board"), the Board is exploring options for the Company's assets, which may include a disposal of one or all of its assets.
The Company is also pleased to announce that its largest shareholders, Stratex International Plc ("Stratex") has agreed to provide a short term loan to the Company for, in aggregate, up to US$100,000 (the "Loan"), demonstrating their ongoing support to the Company. The Company has entered into the loan agreement with Stratex who will provide an unsecured loan of up to US$100,000 repayable on or before 31 December 2016. Interest will accrue on the outstanding amount of the Loans at 5.0% per annum and will be payable quarterly in arrears. The Loan, which will be used to provide general working capital, may be drawn against amounts in accordance with the budget approved by the Board.
As at 11 April 2016, the Company had available cash resources of approximately US$113,000 and it is the Company's intentions to drawn down the Loan as and when required. The Company also confirms that it is currently in negotiations with regards to a settlement with Jurie Wessels, the previous Managing Director and CEO.
As a substantial shareholder, Stratex is deemed a related party of the Company and the Loan therefore constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the independent directors, being Neil Gardyne and Kerry Parker, having consulted with Strand Hanson Limited, the Company's nominated adviser, consider that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.
For further information, please contact:
GoldStone Resources Limited
Christopher Hall / Neil Gardyne
+44 (0)20 7830 9650 / +27 (0)82 490 4427
Strand Hanson Limited
Richard Tulloch / Andrew Emmott
+44 (0)20 7409 3494
SI Capital Limited
Nick Emerson / Andy Thacker
+44 (0)1483 413 500
This information is provided by RNS