Goldstone Resources Ltd
14 September 2006
GOLDSTONE RESOURCES LTD
BAUXITE UPDATE
In September 2005, GoldStone Resources Ltd ('GoldStone' or the 'Company')
entered into an option agreement with BHP Billiton over the Company's bauxite
interests in Guyana. An initial programme was launched to explore the bauxite
potential in the lease areas. This programme, conducted during the last quarter
of 2005 and continued into the first half of 2006, confirmed the deposits
previously identified by GoldStone and further, more detailed, sampling is
planned.
BHP Billiton accordingly elected to make, and has now effected, payment of the
option fee of US$100,000 required to maintain the option until 6 June 2007.
BHP Billiton must before 7 June 2007 choose whether to exercise the option to
require GoldStone to apply for such prospecting licences as may be permissible
under the Bauxite Reconnaissance Permission. If BHP Billiton elects to exercise
the option and a requisite number of prospecting licences are granted to
GoldStone, then upon transfer of the licences to BHP Billiton, GoldStone will
receive a further US$100,000. Potential payments thereafter are as follows:
US$200,000 on the 1st anniversary of the transfer;
US$1 million on the 2nd anniversary of the transfer;
US$3 million on the 4th anniversary of the transfer; and
US$8 million on the 7th anniversary of the transfer.
Dr. Lawrie Minter, who holds a PhD in Palaeoplacer Sedimentology, has reviewed
and approved the content of this announcement.
Enquiries:
GoldStone Resources Ltd +27 21 794 4004
Nico van der Hoven (Chief Executive Officer)
This information is provided by RNS
The company news service from the London Stock Exchange