Goldstone Resources shares jumped 41% to 0.67p after the AIM-listed gold miner announced a raft of funding and balance sheet measures, including a £2 million conditional share subscription and the conversion of debt and unpaid fees into equity.
The subscription involves issuing 200 million new shares at 1p each, with an equal number of warrants attached.
The funds will primarily support accelerated exploration at the company’s Homase Mine in Ghana, while some will be allocated to potential new gold investments — including one under discussion in Sierra Leone.
Asian Investment Management Services (AIMS), a major shareholder, has agreed to convert £1.45 million of accrued interest from a 2020 gold loan into shares, boosting its stake to nearly 30%. A small outstanding interest balance and the principal remain payable in gold.
Directors will convert roughly half of their unpaid fees from the past two years into shares, and an adviser will also be issued equity in lieu of cash.
Admission of all new shares is expected on 10 February, after which the company’s issued share capital will stand at over 1.3 billion shares.