Aim-listed Goldstone is still trying to raise additional funds to provide working capital for its operational development and to settle various balances owed to outstanding creditors.
In the event that the company is unable to procure sufficient additional funding to fund its ongoing operations, partially settle balances owed to overdue creditors and reach suitable repayment agreements with them, Goldstone said it may be unable to continue as a going concern.
As such, trading in the company’s ordinary shares on Aim may be cancelled, it informed shareholders on March 1.
In light of this, Goldstone’s ordinary shares will remain suspended from trading until further notice.
The Goldstone board said, however, that it believes it is making positive progress in securing funding and settling balances and that it expects to be able to provide a further update over the next ten days.
The company further noted than any equity funding arrangements are expected to be conditional on shareholder approval at a general meeting and that there can be no guarantee that any additional funding arrangements can be concluded.
Goldstone’s consolidated unaudited current cash position is about $500 000, with current liabilities of about $11.2-million. These liabilities are comprised of about $4.8-million in relation to a gold loan, which is subject to a standstill agreement, about $3-million in respect of the convertible loan note issued to Blue Gold International due for repayment on November 30 last year, and a variety of smaller creditors totalling about $3.4-million, of which the vast majority are overdue for repayment.