JOHANNESBURG (miningweekly.com) – Aim-listed Goldstone Resources has secured a short-term loan of up to $100 000 for general working capital from major shareholder Aim-listed Stratex International.
Stratex, which held a 33.45% interest in Goldstone, agreed to provide an unsecured, short-term loan repayable on or before December 31, 2016.
As at April 11, Goldstone had available cash resources of around $113 000 and it intended to draw down the loan as and when required, in line with the budget approved by the Goldstone board.
This emerged as Goldstone on Tuesday said it was cutting back exploration activities and exploring options for its assets, which could include a disposal of one or all of its assets.
“Given the prevailing commodity prices and market sentiment towards exploration companies, Goldstone has undertaken a number of initiatives to reduce costs and recalibrate the business in line with the current financial position of the company,” it said in a statement.
Goldstone plans to implement a series of cost-cutting initiatives, such as the reduction or elimination of a significant portion of the company's day-to-day administration and running costs, including salaries and the waiving of all nonexecutive director and interim CEO fees.