Just noticed the rise today.

Company website http://www.goldstoneresources.com/

28 December 2018
GOLDSTONE RESOURCES LIMITED


US$1.224 million Loan and issue of Warrants

GoldStone Resources Limited (AIM: GRL), announces that it has entered into a loan agreement with Paracale Gold Limited ("Paracale Gold"), the Company's major shareholder, (the "Loan Agreement"), pursuant to which Paracale Gold will provide the Company with a loan of up to US$1.224 million (the "Loan").

The Loan, which will accrue interest at 6.0% per annum, will provide the Company with working capital to fund the continued advancement of its Akrokeri-Homase project ("AKHM" or the "Project"), located in the highly prospective Ashanti region of south-western Ghana. The Project is centred around two previously producing assets, the high-grade Akrokeri underground mine and the Homase open pit mine, which are being simultaneously developed towards delivering gold production by mid-2020.



Summary terms of the Loan and Warrants

· Paracale Gold will provide the Company with a loan of up to US$1.224 million

- US$324,000 will be drawn down immediately

- Three further tranches are available to be drawn down in equal instalments of US$300,000 over the next nine months

· Loan plus accrued interest to be repaid in full on or before 2 June 2022

· The Loan will attract interest at a rate of 6.0 per cent per annum, compounded daily against the Loan's outstanding balance, until it is repaid

· The Loan will be used for the development and advancement of AKHM and to provide general working capital

· Paracale Gold to be issued with 40,352,377 new warrants to subscribe for such number of new ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares"), exercisable at a price of 1.2 pence per share at any time during the period through to 2 June 2022 (the "Warrants")

· The existing 40,352,377 warrants held by Paracale Gold have been cancelled

· Director fees to be reduced, with the balance to accrue for deferred payment



Emma Priestley, CEO of GoldStone, commented:

"Paracale Gold shares the Company's vision for the development of the Akrokeri-Homase Project in Ghana. In what remains a challenging market for the natural resource sector, we are pleased to have secured the necessary funding to continue the advancement of AKHM and we welcome and value the continued support of our major shareholder, Paracale Gold as we seek to bring AKHM into production by mid 2020."

https://www.moneyam.com/action/news/showArticle?id=6259010