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Goldstone receives approval for Ghana mine, settles bond agreements

Aim-listed Goldstone Resources has received approval from the Minerals Commission to start irrigation and leaching of ore placed on the heap leach pad at its Homase mine, in Ghana.

The West Africa-focused gold exploration and development company remains on track to achieve targeted production of 25 000 oz of gold for the first eight months of production, with the first gold pour expected to occur in the third quarter of this year.

Additionally, Goldstone has reached a settlement agreement for its 20 outstanding unsecured bonds of $50 000 each with the holders of the bonds, who have subsequently agreed to the full and final settlement of the bonds in exchange for the issue of, in aggregate, 12-million new ordinary shares of 1p each in the capital of the company.

Verbal agreement has been received from BCM Investments, which will be allotted its 3.6-million bond settlement shares immediately following signature of a written bond settlement agreement.

Settlement of the bonds on the terms of the bond settlement agreement is deemed to be in the best interests of the company and all shareholders, as it avoids the issue of, in aggregate, 20-million new warrants to subscribe for ordinary shares at an exercise price of 3p each, as well as the payment of interest at a rate of 14% on the principal amounts outstanding, Goldstone said on July 12.

Goldstone also announced that Asia Investments Management Services (AIMS) has agreed a further extension to the timing of payment of interest on the $3-million secured gold loan announced in June.

AIMS has now agreed with Goldstone that all unpaid and accrued interest associated with the gold loan must be repaid by August 31.

Interest will continue to accrue on the outstanding interest payment at the default rate of 17% until payment is made.

Source: Mining weekly


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