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Stonewall secures A$5.4m for S Africa gold project

18th January 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Junior gold developer Stonewall Resources has secured up to A$5.4-million in funding from The Australian Special Opportunity Fund to complete the next stage of preparation work at its Rietfontein project in South Africa.

An immediate A$2-million in funding will be available to Stonewall, along with ten monthly instalments of A$60 000 each, with the potential to increase to A$250 000.

The funder could elect to convert the funding into Stonewall shares after an initial three months, at a pre-set conversion price of 1.9c a share.

Stonewall told shareholders that the funding backed the execution on permitting, with ready-to-go approvals, historical mining and existing infrastructure, along with well-understood metallurgy and lower capital costs to gold strategy that would place the company in a good position to create shareholder value from its three-million-ounce resource.

“We're delighted that Stonewall will now be able to advance its plans for production, including the high-grade Rietfontein hard-rock resource,” said MD Robert Thomson.

“An independent scoping study is in progress with the intention to establish commercial gold production. This is a major turning point for Stonewall.”

Edited by Creamer Media Reporter

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