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Gold explorer and developer focused on West Africa GoldStone Resources on Monday announced an operational update and agreements reached with creditors.
The AIM-listed company said it has now received approval from the Ghana Minerals Commission to begin irrigation and leaching of ore placed on the heap leach platform at the Homase mine.
He said he was on track to meet the target production of 25,000 ounces of gold for the first eight months of production, with a first gold pour expected in the third quarter.
Financially, GoldStone said it has reached an agreement with bondholders for the settlement of its 20 outstanding unsecured bonds of $ 50,000 each.
The board said the offer had been accepted by all bondholders, who had accepted full and final settlement of the bonds in exchange for the issuance of 12,000,000 new GoldStone shares in total.
A verbal agreement had been received from BCM Investments, which would be granted its 3,600,000 bond settlement shares immediately after signing a written bond settlement agreement.
Settlement of bonds on such terms was considered to be in the best interests of the company and all shareholders, the directors said, as it avoided the issuance of 20,000,000 new warrants to subscribe for shares in the stock market. price of 3p each, as well as the payment of interest at the rate of 14% on outstanding principal amounts.
GoldStone also announced that Asia Investments Management Services (AIMS) has agreed to a further extension of the interest payment schedule on the $ 3 million secured gold loan announced on June 22, 2020.
An extension until June 30, 2021 was agreed on March 1, due to delays in issuing operating permits.
The company said AIMS has now agreed that all unpaid and accrued interest associated with the June 30 loan will be repaid by August 31.
Interest would continue to accrue on the overdue payment at the default rate of 17%, until payment is made.
“I am delighted that bondholders and AIMS have supported the company to avoid impacting the operational progress of the company, allowing us to continue to focus on our goal of producing gold in the near term.” , said Emma Priestley, managing director.
At 1,432 BST, GoldStone Resources shares rose 8.91% to 12.25%.
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