Goldstone Resources reaches settlement with ex-director

Gold exploration and development company Goldstone Resources has reached an agreement with a former director, it announced on Monday, for full and final settlement of damages awarded by the South African Labour Court (the "Court") in December 2018.

The AIM-traded firm said that under the agreement, it had agreed to issue 1,800,000 new shares to the former director, which had a value of £0.16m at the closing middle market price on 15 January.

That, in addition to the $22,500 already paid in cash, represented settlement of the damages awarded to him by the South African courts.

The company said it had been indemnified against any future claims by the former director of the company.

“The settlement agreement allows Goldstone to retain the majority of the cash associated with the damages awarded to the former director of the company for working capital purposes as it targets the commencement of production at the Akrokeri-Homase gold project,” the Goldstone board said in its statement.

At 1200 GMT, shares in Goldstone Resources were up 1.1% at 9.2p.