Aim-listed GoldStone Resources has issued convertible loan notes to Blue Gold International Limited (BGL) in the nominal amount of £2.4-million, which are due for redemption on November 30, 2024.
BGL has also received warrants to subscribe for up to 60-million ordinary shares exercisable at any time until January 26, 2025.
The directors of the company say they are mindful of the need to expand the company’s Homase mine, in Ghana. The mine produced and sold 5 153 troy ounces of gold last year, realising an average price of $1 794/oz for revenues of $9.3-million, as announced on January 3.
Expansion will seek to increase production and improvement of the recovery of the heap leach operation, which is currently yielding 65% of the contained gold delivered to the heap.
The proceeds from the loan notes will also contribute towards the purchase of plant and equipment to assist in reducing the operating costs of the operation.
The company is reviewing an exploration programme along strike and down dip of the current Joint Ore Reserves Committee-compliant resource, as well as exploring the anomalies that were identified, with the soil sampling and auguring programme.
In addition, the company is continuing with the ongoing exploration programme at the Akrokeri underground mine.
“Blue Gold shares our vision for the expansion of the Homase mine and the potential development of the Homase-Akrokeri project in Ghana. In what remains a challenging market for the natural resources sector, we welcome and value the support of Blue Gold, who we believe will assist the company in this business venture, and in making significant progress in Ghana,” says GoldStone CEO Emma Priestley.