Business
Placing to raise £1m
Placing to raise £1m.
About this update from Goldstone Resources Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 0203S\n Goldstone Resources Ltd\n 11 November 2021\n \n \n \n \n 11 November 2021\n \n \n \n \n \n GOLDSTONE RESOURCES LIMITED\n \n \n (\"GoldStone\" or the \"Company\")\n \n \n \n \n \n Placing to raise £1m \n \n \n \n \n \n GoldStone Resources Limited (AIM: GRL), is pleased to announce that the Company has raised approximately £1 million (before expenses) by way of a placing of 8,695,652 new ordinary shares of 1 pence each in the Company (the \"Placing Shares\") at a price of 11.5 pence per Placing Share (the \"Placing Price\") with a new institutional shareholder (the \"Placing\").\n \n \n \n \n \n Use of Proceeds\n \n \n The net proceeds of the Placing will be used predominantly to expediate the exploration, including a drilling programme, at the former underground mine at Akrokeri, formerly known as the Akrokeri Ashanti Mine Ltd (the \"Akrokeri Mine\"). The Akrokeri Mine was closed in 1909, having produced 75,000 ounces of gold at a final recovered average grade of 0.73 oz/t, equivalent to approximately 24 g/t, and was abruptly closed following an ingress of water. Work will expand upon previous drilling comprising nineteen Diamond Drill holes totalling 5,200 metres of core, which the Company re-logged in 2018 to discover high grade quartz veins up to 8 g/t including 1.5m @ 52.1 g/t and 17m @ 11 g/t, with individual assays up to 25 g/t.\n \n \n \n \n \n In addition, the Placing proceeds will be used for costs associated with the expansion of the Mining Lease Area for the Homase Mine, announced on 3 December 2020, which includes an Environmental Impact Assessment and crop compensation, and in expanding the Mineable Resource of the Homase Mine as defined in the Definitive Economic Plan, 19 June 2019. \n \n \n \n \n \n The Placing proceeds will also support the recommencement of mining, which includes moving to double shift, and for the ramp up of gold production, with first production expected to commence by the end of November 2021. \n \n \n \n \n \n \n Emma Priestley, Chief Executive Officer, commented\n \n : \n \n \n \"By completing this financing now, we can execute early on our objective for our planned exploration on the former underground mine at Akrokeri and other activities that can add value to the Homase Mine. ...