GoldStone surges 36% as Hong Kong miner takes 21% stake

GoldStone Resources (AIM: GRL) shares surged on Monday after the Ghana-focused gold developer secured a £3.51 million strategic investment from Hong Kong-listed Persistence Gold Group (HKEX: 2489) to accelerate drilling and development at its Homase gold project.

Persistence said it would subscribe for 351.6 million new shares at 1p each, giving it a 20.96% stake in GoldStone following admission to AIM, expected on or around July 13. GoldStone shares climbed 36% in London to 0.75p.

“The investment from Persistence Gold Group provides significant financial flexibility to accelerate the next phase of development at Homase,” chief executive Emma Priestley said. “We are pleased to welcome Persistence as a strategic shareholder and look forward to working together as we advance the project.”

Strategic partnership

The financing strengthens GoldStone’s balance sheet as the company works to expand its JORC-compliant mineral resource at Homase through an enlarged drilling campaign while advancing exploration across its Ghanaian licence portfolio.

The proceeds will also fund mine planning, technical studies, working capital and general corporate purposes, the companies said.

The investment gives Persistence the right to nominate one director while it maintains at least a 15% holding, with executive director Jeff Malaihollo expected to join GoldStone’s board as a non-executive director.

GoldStone, Persistence and nominated adviser Strand Hanson have also signed a relationship agreement designed to ensure the company continues to operate independently while Persistence remains a significant shareholder.

The agreement includes governance safeguards intended to protect minority shareholders while allowing GoldStone to benefit from the expertise and financial backing of an experienced international mining investor as it advances Homase toward its next stage of development.