Business
Proposed Subscription & Share Consolidation
Proposed Subscription & Share Consolidation.
About this update from Goldstone Resources Limited
[{"type":"text","content":"\n \nRNS Number : 8012M Goldstone Resources Ltd 21 July 2014 \n \n\n21 July 2014\nGOLDSTONE RESOURCES LIMITED\n(\"GoldStone\" or the \"Company\")\nConditional Subscription by Stratex International plc\n& Proposed Share Consolidation\nGoldStone (AIM: GRL), the AIM quoted exploration company focused on gold in West and Central Africa, is pleased to announce a proposed subscription for shares by Stratex International Plc (\"Stratex\") to raise gross proceeds of £1.25 million (the \"Subscription\"). The Subscription will occur after the proposed 1 for 10 consolidation (the \"Share Consolidation\") of the Company's existing ordinary shares of 1 penny (\"Ordinary Shares\") into new ordinary shares of 1 penny (\"New Ordinary Shares\") and will be for 20,833,333 New Ordinary Shares (the \"Subscription Shares\") at a price of 6 pence per share (the \"Subscription Price\"). \nThe Subscription Shares would, following the Share Consolidation and the Subscription represent approximately 33.5% of the enlarged issued share capital of the Company. The Subscription Price, with adjustment for the Share Consolidation, represents a discount of approximately 3% to the volume weighted average price over the 20 trading days ended 18 July 2014. \nJurie Wessels, CEO of GoldStone commented as follows:\n\"The forging of an alliance with Stratex not only delivers funding at a critical time to advance GoldStone's attractive projects, but also leads to GoldStone gaining an experienced and well-funded shareholder with a proven track record of turning small to medium sized gold assets into cash generating enterprises. By becoming a major shareholder and gaining a significant presence at board level, Stratex shows commitment to unlock the synergies offered by both companies' resources.\" \nPrincipal Terms of the conditional Subscription\nUnder the terms of the subscription agreement entered into between inter alia the Company and Stratex (the 'Subscription Agreement'), Stratex will subscribe for the Subscription Shares at the Subscription Price, conditional, inter alia, upon:\n- admission of the Subscription Shares to trading on AIM (\"Admission\") becoming effective on or before 30 September 2014 or such later date as the Company and Stratex may agree, being not later than 31 October 2014 (the 'Lo...