Goldstone Resources converts gold loan interest to shares

(Sharecast News) - Goldstone Resources announced on Friday that it has agreed to issue 49 million new shares to Asian Investment Management Services (AIMSL) in settlement of 247.72 troy ounces of accrued interest under its existing gold loan agreement. The AIM-traded firm said the conversion followed a prior share issue to AIMSL in May, and completed the 101.8 million shares intended for interest settlement as announced in April.

Following the issue, the outstanding balance on the gold loan would be reduced to 2,266.63 troy ounces, comprising 1,871.43 troy ounces of principal and 395.20 troy ounces of remaining accrued interest.

The outstanding balance would continue to accrue interest at 14% per annum.

Goldstone said the conversion shares represented about 5.2% of its enlarged share capital, and would take AIMSL's total holding to 25.7%, making it the company's largest shareholder.

As AIMSL is a substantial shareholder, the transaction constituted a related party transaction under the AIM rules.

The company's board, having consulted with its nominated adviser Strand Hanson, said it considered the terms to be fair and reasonable.

Goldstone said an application had been made for the new shares to be admitted to trading on AIM on or around 3 April.

Upon admission, Goldstone's total issued share capital would consist of 949.2 million ordinary shares, each carrying one voting right.

At 1348 GMT, shares in Goldstone Resources were down 2.19% at 1.03p.

Reporting by Josh White for Sharecast.com.