Update regarding claim by a former director

RNS Number : 5899K

Goldstone Resources Ltd

14 December 2018

 

14 December 2018

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Update regarding claim by a former director

GoldStone Resources Limited (AIM: GRL), the West-African focused gold exploration company, quoted on AIM, announces that the South African Labour Court (the "Court") has now reached its judgement in relation to the claim against the Company by Hendrik Schloemann, a former director of the Company, first announced on 13 October 2016.

The Board is disappointed to announce that the Court has ruled in favour of Mr Schloemann and awarded him damages of US$140,000 plus legal costs, the quantum of which is yet to be confirmed. The Board is currently considering its options in respect of the judgement with its legal advisers and it is likely that the Company will lodge an appeal.

In the event that an appeal is not lodged with the Court or is unsuccessful, the Company will be required to agree a payment schedule in respect of the award with Mr Schloemann's attorney (the "Payment Schedule") and a further announcement will be made once/if such schedule is agreed.

The Board notes that the award is in excess of the Company's current cash balance of approximately US$90,000 which, excluding the abovementioned award, the Board believes is sufficient for the Company's current requirements through to March 2019.

The Board confirms that it is currently in advanced discussions with the Company's major shareholder, Paracale Gold Limited, with regards to the provision of additional funding of US$1.2 million, which will be in the form of a secured loan, to provide general working capital for the Company and, if required, to enable to Company to settle the abovementioned award.

Whilst the Board is in advanced discussions in relation to such funding, there can be no certainty that such funding will be secured or to the terms of such funding.

Further announcements will be made as and when appropriate.

For further information, please contact:

GoldStone Resources Limited
Emma Priestley	Tel: [phone]
Strand Hanson Limited
Richard Tulloch / James Bellman	Tel: [phone]
SI Capital Limited
Nick Emerson	Tel: [phone]
Citigate Dewe Rogerson
Louise Mason-Rutherford	Tel: [phone]
St Brides Partners Ltd
Susie Geliher / Juliet Earl	Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

About GoldStone Resources Limited

GoldStone Resources Limited (AIM: GRL) is an AIM quoted gold exploration and development company with projects in Ghana and Senegal that range from grassroots to advanced exploration.

The Company is focused on developing the Akrokeri-Homase Gold Project ("AKHM") in south-western Ghana, which hosts a JORC Code compliant 602,000 oz gold resource at an average grade of 1.77 g/t, along strike from the Obuasi Gold Mine, one of the world's major gold mines with a total historical and current resource in excess of 70 million ounces of gold.  GoldStone's existing resource is confined to a 4km zone of the Homase Trend, including Homase North, Homase Pit and Homase South.

AKHM hosts two former mines, the underground mine at Akrokeri mined by Akrokeri Ashanti Mine Ltd, which produced 75,000 oz gold @ 24 g/t recovered grade in the early 1900s, and the Homase Pit which AngloGold Ashanti developed in 2002/03 producing 52,000 oz gold @ 2.5 g/t recovered.  It is the Company's intention to build a portfolio of high-quality gold projects in Ghana, with a particular focus on the highly prospective Ashanti Gold Belt.

 

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