Golden Saint Resources Ltd (LON:GSR), the West African-focused diamond and gold exploration company quoted on AIM, have today provided the market with the following operational and corporate updates, relating to three of the Company’s exploration licence areas in Sierra Leone, being Baja, Tongo and Moa.
Baja Licence area
In the last update on 20 January 2017, the Company reported that 550 tonnes of gravels were extracted from the bulk sample trench at Baja site 4. As at date of this report, a further 985 tonnes of gravels comprising upper gravels (513 tonnes) and basal gravels (472 tonnes) were extracted, the latter generally regarded as potentially being of higher diamond grade. The local washing plant was relocated from Baja site 2 to Baja site 4 so that the larger stockpile at Baja site 4 can be treated first after the sampling plant has been assembled and tested to operate at the desired efficiency at Baja site 4. Extra security measures were taken to increase the number of security personnel on site and additional night lights at Baja site 4 were also installed. Security guards were also stationed at Baja site 2 to safe keep the remaining gravels until a later date when the gravels will be treated. Bulk sampling operations at Baja site 4 commenced on 26 Feb 2017 and as at 30 March 2017, 156 tonnes of gravels have been washed. The early production results were positive and the Company recovered 19 diamonds weighing 3.0 carats. The stones ranged from 0.05 to 0.40 carats per stone. Gravel extraction and washing will continue and the Company will provide further updates to the market as work progresses.
Tongo Licence area – Alluvial Diamonds
At Tongo site 1, 426 tons of gravels have been extracted from the original bulk sample trench on the lower terrace of the Woa River. After the satisfactory completion of the recalibration and efficiency tests on the Dove Explorer, bulk sampling operations commenced on 14 February 2017 and with the initial wash of 138 tonnes of gravels up to 30 March 2017, the Company recovered 4 diamonds weighing a total of 3.75 carats. The stones ranged from 0.05 to 1.45 carats per stone. In addition, some 4.14 grams of alluvial gold were also recovered from the 138 tonnes of gravels treated. The Company will provide further updates as the gravel extraction and washing operations progresses.
Tongo Licence area – Kimberlite Exploration
In consultation with Rock Forage Consulting Services (“Rock Forage”), the Company commenced the kimberlite exploration project comprising a loam sampling program to search for kimberlite indicator minerals and eventually to validate a high priority dyke target located near the northern section of our Tongo licence. This dyke target was identified in the aeromagnetic surveys and preliminary indications, including artisanal operations, point to this section of the Tongo licence as having increased kimberlite potential. A total of 25 loam sampling pits have been dug and the loam samples have been collected for further analysis.
Site visit by Rock Forage
The site visit by Rock Forage and key individuals from the GSR management team was carried out from 9 February 2017 to 4 March 2017. The visit focused on ensuring that the recommendations contained in their last report dated 16 January 2017 and announced on 20 Jan 2017 were satisfactorily implemented where practicable. A detailed site visit report will be submitted by Rock Forage in due course and this will be made available on the Company’s website after it has been announced.
Placing and TVR
The Board of the Company is pleased to announce that it has raised £553,484 before expenses, by way of a placing (“Placing”) of 2,635,638,097 new ordinary shares of no par value in the Company (“Placing Shares”) at a placing price of 0.021 pence per share.
The Placing is conditional only upon admission of the Placing Shares to trading on AIM and has been carried out within the Company’s existing share authorities.
The Company intends to use the net proceeds of the Placing to progress the Company’s alluvial and bulk sampling operations, to provide funding for the annual licence fees payable in relation to the Group’s three exploration licences and for general working capital purposes.
In addition, the Company has agreed with selected consultants including Franklyn Bai Kargbo, Africanus Sesay and Brima Koroma to the issue of a total of 351,561,904 new Ordinary Shares (“Consultant Shares”) in lieu of services rendered and to be rendered (total of £73,828) up to 31 March 2018. The Consultant Shares are being issued at a price of 0.021 pence per share, being the same as the placing price.
The Placing Shares and the Consultant Shares will rank pari passu with the existing Ordinary Shares and application has been made for the Placing Shares and the Consultant Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings in the Placing Shares and the Consultant Shares will commence at 8.00 a.m. on 5 May 2017.
Following Admission of the Placing Shares and the Consultant Shares, the Company’s issued share capital will consist of 8,822,256,582 Ordinary Shares with voting rights. There are no Ordinary Shares held in treasury. This number 8,822,256,582 may be used by shareholders, following Admission, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules, of which the Company has incorporated Chapter 5 into its articles of association.
Board Changes
The Board announces that it reluctantly accepts the resignation of Mr. Alimamy Rassin Wurie from his position as the Executive Director of the Company due to health reasons. Mr. Wurie has been a valued member of the Board since his appointment on 10 February 2016 and the Board would like to express its appreciation to him for his contribution over the last year. Mr. Alimamy Rassin Wurie agreed to stay with the Group as a director of the Company’s 75% owned subsidiary in Sierra Leone, Golden Saint Resources (Africa) Ltd, and the Company is commencing the process of his appointment.
In addition, subject to satisfactory due diligence and regulatory checks, the Board is proposing to appoint Mr. Yohanes Adimas Prawiro, who has previously served as a Project Manager of GSR, as the Chief Executive Officer of the Company. Further information on Mr. Prawiro, as required to be disclosed under Schedule Two, (g) (i)-(viii) of the AIM Rules, will be provided at the time of his appointment.
Finally, the Board agreed on a 30% pay cut for the Chairman and Finance Director’s salary with effect from the beginning of April 2017.
