Goldstone raising £1.5m though subscription

Goldstone Resources announced on Wednesday that it is raising £1.5m gross by way of a subscription for 100 million new ordinary shares of 1p each in the capital of the company, at a price of 1.5p per subscription share, with new and existing shareholders.

The AIM-traded firm said the subscription shares would represent approximately 40.17% of its enlarged issued share capital..

It said the subscription price represented a discount of approximately 31.8% to the closing mid-market price of the company's ordinary shares on 26 September, and a discount of approximately 21.2% to the company's average closing mid market price for the 30 days prior.

BCM Investment was subscribing for 50 million subscription shares as part of the subscription, representing approximately 20.08% of the Company's issued share capital on admission.

“BCM and its subsidiaries [have] provided the company with mining services in relation to the company's current drilling programmes,” Goldstone’s board said in its statement.

“As part of the relationship which has developed between the company and BCM Group as a result of this work - and the fact that the BCM Group is supportive of the company's strategy - discussions that have been ongoing over recent weeks have culminated in the BCM Group supporting the company through its participation in the subscription.”

The board said the proceeds of the subscription would be applied to the company's operations, and the general advancement of the company's corporate objectives.

“We are delighted to welcome BCM as a shareholder and partner to Goldstone and with the continued support from existing shareholders in raising £1.5m in an uncertain market,” said Goldstone non-executive chairman Neil Gardyne.

“We look forward to applying these funds to furthering the company's objectives and accelerating growth with Homase/Akrokerri Project in Ghana.”