GoldStone Resources Ltd (GRL): Sierra Leone Investment

GoldStone Resources Ltd

Sierra Leone Investment | Company Announcement | Investegate Fundraise Welcome About Contact Us Help Home Companies Advanced search Archive UK Short Positions Meetings UK Newswire New Login Register Sierra Leone Investment Summary by AI BETA Close X GoldStone Resources Limited has entered into a binding Memorandum of Understanding to acquire a 50% interest in Mincorp (SL) Limited for £600,000, funded by its recent equity raise. This investment provides exposure to a small-scale artisanal gold operation and exploration ground in Sierra Leone, adjacent to the Boamahun Gold Mine with an estimated 5.8 million ounces. The project aims for initial production of approximately 2 kilograms of gold per month, generating early cashflow while advancing exploration across a prospective 7-mile corridor. The company will also receive an overriding royalty on the first 70 troy ounces of refined gold and a right of first refusal on future gold offtake. Disclaimer* Goldstone Resources Ltd 17 March 2026 &#160; &#160; 17 March 2026 &#160; &#160; GoldStone Resources Limited (AIM: GRL) ("GoldStone" or the "Company") &#160; Sierra Leone Investment &#160; GoldStone Resources Limited (AIM: GRL) announces that it has entered into a&#160;binding Memorandum of Understanding (" MOU ")&#160;with&#160;Mincorp (SL) Limited (" Mincorp "), a Sierra Leone incorporated gold exploration company. &#160; Sierra Leone Opportunity &#160; Mincorp holds interests in a small-scale artisanal gold operation (the " Project ") together with highly prospective exploration ground in the Eastern Province of Sierra Leone. The Project is adjacent to the Boamahun Gold Mine, a known gold deposit estimated to contain approximately&#160;5.8 million ounces, placing the licence within a well-endowed and proven gold belt. &#160; The Board believes the Project offers a compelling combination of near-term production potential and significant district-scale exploration upside. &#160; Under the terms of the MOU, GoldStone has agreed to acquire a&#160;50% interest&#160;in Mincorp through a subscription for new ordinary shares in Mincorp for a total investment of&#160;&#163;600,000, which will be funded from the proceeds of the Company's recently completed equity fundraising. &#160; Strategic Rationale &#160; The investment is intended to fund the commissioning of mining and processing equipment aimed at establishing an initial production rate targeted at approximately&#160;2 kilograms of gold per month, subject to operational performance. &#160; A phased approach has been designed to generate early operational cashflow while providing a platform to advance systematic exploration across the broader licence area in Sierra Leone. &#160; GoldStone will assist and advise on operations, equipment and project security.&#160; The Company intends to work alongside MinCorp to implement a&#160;phased technical programme, initially focussing on mining the gravels while undertaking exploration aimed at exposing Kimber structure, from which a broader exploration programme will be designed. &#160; The Board believes the scale of the prospective corridor provides&#160;material exploration upside&#160;alongside the initial small-scale production base. &#160; Key Terms of the MOU &#160; The principal terms of the MOU include: &#183;&#160;&#160;&#160;&#160; MinCorp will issue and allot to GoldStone&#160;1,000 new ordinary shares, increasing MinCorp's issued share capital to&#160;2,000 ordinary shares, resulting in GoldStone holding&#160;50% of the issued share capital on a fully diluted basis. &#183;&#160;&#160;&#160;&#160; MinCorp will pay GoldStone a&#160;one-off overriding royalty&#160;in respect of 100% of the first&#160;70 troy ounces&#160;of refined&#160;.9999 fine gold&#160;derived from total gold production at the Project. &#183;&#160;&#160;&#160;&#160; GoldStone will have a&#160;right of first refusal&#160;to purchase all MinCorp gold offtake for&#160;30 days&#160;from the date the gold is refined to&#160;.9999 fine. &#183;&#160;&#160;&#160;&#160; GoldStone will nominate&#160;one director&#160;to the board of MinCorp, subject to which the board of MinCorp is expected to comprise Augustine Sheku (further detailed below) and Mike Jones, currently a Non-Executive Director of Goldstone. &#160; Development and Exploration Upside &#160; The parties intend to initially operate the existing small scale mining activity to generate early cashflow while simultaneously advancing exploration. &#160; The Project hosts: &#160; &#183;&#160;&#160;&#160;&#160; multiple mineralised gravel occurrences; &#183;&#160;&#160;&#160;&#160; highly oxidised gold-bearing outcrops; and &#183;&#160;&#160;&#160;&#160; a prospective structural corridor interpreted to extend over approximately&#160;7 miles. &#160; Early work undertaken by MinCorp on the gravels using rudimentary gravity recovery methods indicates a grade of approximately&#160;12 g/t, suggesting potential for optimisation through improved processing technology. &#160; About MinCorp Limited &#160; MinCorp works through strategic partnerships to provide support, finance, management and development of small scale operations, and is focused on the acquisition, investment, and development of small-scale mineral licences located within established mining districts. Its strategy is to identify opportunities situated within, adjacent to, or along strike from major producing mines or large, proven mineral reserves, where geological continuity and existing infrastructure significantly enhance the potential for discovery and development. &#160; By targeting licences in known exploration corridors, MinCorp seeks to reduce geological risk while leveraging the upside that often remains in underexplored or fragmented licence areas surrounding major deposits. &#160; Founded by Augustine Sheku (Managing Director, General Counsel - Sierra Leone).&#160; Augustine is the Senior State Counsel (Prosecutor) for Sierra Leone, for the Southern Region. He served as lawyer to the Environment and Natural Resources group of the Constitutional Review Committee of Sierra Leone. He has legal expertise in all aspects pertinent to mining including mining rights, licences and exportation. Augustine has excellent relationships with the chiefdoms and traditional authorities in the mining areas of Sierra Leone and with the senior management of the National Minerals Agency. He also has 12 years' experience of mining gold and diamonds in Southern Sierra Leone and coordinates the Project's mining operation, licencing and exportation of the gold produced. &#160; Emma Priestley, Chief Executive Officer of GoldStone Resources Limited, commented : &#160; "We are pleased to have entered into this binding MOU with Mincorp, which provides GoldStone with exposure to a highly prospective gold district in Sierra Leone. The Project offers an attractive combination of near-term production potential and significant exploration upside along a proven mineralised trend adjacent to the Boamahun deposit. The Board believes the Project has the potential to contribute to GoldStone's wider strategy of building a&#160;self-funding exploration-from-production-business&#160;while maintaining disciplined capital deployment, and we look forward to working closely with the MinCorp team to advance the Project and unlock its wider exploration potential" &#160; &#160; For further information, please contact: &#160; GoldStone Resources Limited &#160; Emma Priestley / Mike Jones Tel: +44 (0)1534 487 757 &#160; Strand Hanson Limited &#160; James Dance / James Bellman Tel: +44 (0)20 7409 3494 &#160; S. P. Angel Corporate Finance LLP &#160; Ewan Leggat / Charlie Bouverat&#160; Tel: +44 (0)20&#160; 3470 0501 &#160; St Brides Partners Ltd Ana Ribeiro&#160; &#160; &#160; Tel: +44 (0)20 7236 1177 goldstone@stbridespartners.co.uk &#160; &#160; The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under