Goldstone Resources Ltd shares plummeted on Monday after it said a £2.7 million loan is overdue for repayment, although it expects to be able to renegotiate it.
The stock was down 26% at 1.16 pence early Monday afternoon in London.
The Ghana-focused gold explorer said a convertible loan note, issued to Blue Gold International Ltd early last year, was due for redemption on Saturday.
Goldstone said the unsecured loan note’s total outstanding balance as of Friday last week was £2.7 million, including accrued interest. Goldstone has five business days to make the final payment.
Goldstone said discussions were ongoing with the lender and other parties, regarding a possible variation and extension.
However, while Goldstone ‘expects to be able to renegotiate or otherwise refinance the CLN’, it warned that this is not guaranteed.
Goldstone added: ‘The board is taking appropriate professional advice regarding the company’s trading position in the event that a solution cannot be achieved and the final payment under the CLN cannot be repaid or rescheduled prior to [Monday next week].’
Back in September, Goldstone said its loss before and after tax from continuing operations was $2.4 million the first half of 2024, narrowed from $3.7 million a year before.
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