GoldStone Resources (LON:GRL) is looking forward to brighter times having held on to all of its prized assets in a tough year for miners.
Looking back on the year to 28 February 2014 in its final results statement, the company said it had been constrained in its exploration activities by lack of funds, but things are looking up after it struck a subscription deal last month with Stratex International (LON:STI) last month that will see Stratex take an initial 33.4% stake in GoldStone.
Stratex’s holding will rise to 50.1% with the exercise of warrants and it will receive two seats on the restructured GoldStone board.
GoldStone’s key assets are the Homase and Akrokeri properties in Ghana, which are host to a 602,000 ounce resource.
It holds 100% of the latter and 65% of the former, with the option of going to 85%.
Today, GoldStone highlighted how its hands had been tied by a shortage of funds.
"The funds raised through the Stratex subscription will provide the company with sufficient cash resources to conduct meaningful exploration at Homase/Akrokerri, keep the most prospective projects in good standing and allow the company to investigate other measures of funding, if practicable and expedient.
"Exploration at Homase/Akrokerri will be directed at potentially adding shallow oxide resources, metallurgy drilling (to define the metallurgical possibilities), mine studies to advance our understanding of the optimum production capacity of the Homase resource and a number of boreholes to test the potential of the recognised high grade shoots at depth."
The firm added joint ventures would be considered for some of its projects, including Sangola, where it has extensive data from Randgold's activities, as well as the projects in Gabon.
The loss before tax narrowed in the year to Feb 28 this year to £1.69mln, compared to a loss of £6.48mln in 2013.