Goldstone Resources Ltd on Wednesday said it will use conditionally raised proceeds from a subscription of shares to further the development of the Homase gold mine.
The Jersey-based gold resource development company with a focus on projects in Ghana said it conditionally raised £600,000 from an institutional investor through the subscription of 57.1 million shares priced at 1.05 pence each.
Goldstone Resources shares were down 30% to 1.33 pence each in London on Wednesday afternoon.
The subscription shares represent 8% of the company’s enlarged share capital.
Proceeds from the fundraise will be put towards advancing the development of the Homase mine in the Ashanti Gold Belt in Ghana alongside additional working capital purposes.
Goldstone is aiming to deliver 50,000 tonnes of stacked and agglomerated ore and achieve a gold production target of 1,000 ounces per month.
Chief Executive Officer Emma Priestley said: ‘[The subscription] provides a substantial proportion of the equity funding of c.£1.8 million targeted in April 2024...Operating in Ghana, a stable and pro-mining jurisdiction with a rich history in gold production, we are confident in the potential of this project, especially with gold prices at a five-year high.’
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