Gold Loan Standstill Extension

In brief · summary, not quotable

GoldStone Resources Limited has amended its gold loan agreement with Asian Investment Management Services Ltd, extending the loan maturity date from December 31, 2025, to December 31, 2026, and deferring interest payments for six months until June 30, 2026. This extension provides the company with additional financial flexibility to optimize cash flow from its Homase mine, particularly in a rising gold price environment, and to support its working capital needs and development plans.

Full announcement

Select text to share a quote on X · sign in to keep highlights & notes in your GRL notes

GoldStone Resources Limited (AIM: GRL) announces that it has agreed an amendment to the terms of the standstill agreement originally entered into on 29 December 2023 (the "Standstill Agreement"), in relation to its existing gold loan agreement with Asian Investment Management Services Ltd ("AIMS") entered into on 19 June 2020 (the "Gold Loan"), pursuant to which the maturity date of the Gold Loan has been extended and interest payments have been temporarily deferred.

Under the revised terms of the Standstill Agreement, the maturity date of the Gold Loan has been extended from 31 December 2025 to 31 December 2026. In addition, interest payments on the loan have been frozen for the six-month period to 30 June 2026.

The Company is pleased to work with its major creditor to optimise the Homase mine's cash flow in a rising gold price environment, providing the Company's shareholders with potential upside and assisting with the Company's working capital requirements.

Emma Priestley, Chief Executive Officer of GoldStone Resources Limited, commented: "We appreciate the continued support from AIMS. The extension of the gold loan maturity and the temporary deferral of interest payments provides additional flexibility as we focus on stabilising existing operations and progressing the Company's broader development plans."

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.