GoldStone Resources Limited
("GoldStone" or the "Company")
Increased interest in the Homase Licence: Homase/Akrokerri Project, Ghana
GoldStone Resources Ltd (AIM: GRL), the West and Central Africa focused gold exploration company quoted on AIM, is pleased to announce that the Company has signed an addendum agreement with its Homase joint venture partner, Cherry Hill Mining Company Ltd ("Cherry Hill"), to expedite the increase of the Company's interest in the Homase licence ("Interest") to 90% from its current Interest of 65%.
Under the terms of the original joint venture agreement with Cherry Hill announced 19 October 2009 (the "Agreement"), GoldStone was to earn up to a 90% Interest by meeting certain contractual hurdles, funding exploration and development costs through to the conclusion of a feasibility study, as well as paying certain participation fees to Cherry Hill. The Company and Cherry Hill (together the "Parties") have now agreed an addendum to the Agreement (the "Addendum") whereby GoldStone's current Interest of 65% will increase to 90% on payment of US$25,000 to Cherry Hill.
Jurie Wessels, CEO of GoldStone commented: "In return for US$25,000 the Company is adding attributable mineral resources of 101,750 oz Au and hurdling two significant contractual objectives to attain a 90% interest in the Homase licence, thereby obtaining ownership of 93% of the Homase/Akrokerri mineral resource."
Further information on the Agreement and Addendum
The Addendum simplifies the Agreement and provides a number of benefits to the Company, being:
- The removal of contractual hurdles to earn a 90% Interest, including the requirement of expenditure towards a feasibility study to earn an 85% Interest (estimated as significant), and further development expenditure to earn an additional 5% Interest;
- The removal of the option of Cherry Hill to contribute to development costs and so retain a 15% interest in the licence at their election;
- The removal of the deadline to reach an 85% Interest, previously 18 March 2016, and removal of Cherry Hill being able to sell up to a 25% interest to a third party if the deadline isn't met;
- Added certainty to the Company attaining ownership of an additional attributable mineral resource of 101,750 oz Au; and
- More attractive conditions of the final US$60,000 participation fee to be paid to Cherry Hill, now being on the conclusion of a successful feasibility study, rather than on commencement of expenditure towards a feasibility study, successful or otherwise.
Further exploration and development costs on the Homase licence will be met in full by the Company. Should the Company complete a successful feasibility study, the Parties will negotiate in good faith to agree on the terms and conditions for the buyout of Cherry Hill's remaining 10% interest in the Homase licence. If the Parties cannot agree on the terms and conditions for the buyout of Cherry Hill's interest, Cherry Hill will be entitled to receive a royalty of 2% in exchange for its interest.
Pursuant to Ghanaian law the Government of Ghana is entitled to a 10% free carried interest in any mining ventures, which can be exercised at any time after the granting of a mining lease.
GoldStone is presently conducting an in-fill auger sampling program over the Homase/Akrokerri project, designed to provide the Company's geologists with sufficient density of data and confidence of provenance of gold mineralisation to be able to plan a drilling campaign, with a view to potentially adding to the Company's existing 602,000 oz Au JORC Code complaint resource for the Homase/Akrokerri project. The Homase Licence contributes a total JORC Code compliant resource of 6.83 million tonnes at an average grade of 1.86 g/t Au for 407,000 oz Au to the combined project resource.
For further information, please contact:
GoldStone Resources Limited
Jurie Wessels +27 (0)21 871 1287
Strand Hanson Limited
Richard Tulloch / Andrew Emmott +44 (0)20 7409 3494
Scott McGregor +27 (0)87 828 0407
SI Capital Limited
Nick Emerson / Andy Thacker +44 (0)1483 413 500
This information is provided by RNS
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