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.”