GoldStone Resources (LSE:GRL) has entered into a binding memorandum of understanding to purchase a 50% interest in Sierra Leone-focused explorer Mincorp (SL) Limited for £600,000, funded from its recent equity raise. The transaction provides GoldStone with exposure to a small-scale artisanal gold operation located next to the 5.8-million-ounce Boamahun deposit, as well as access to highly prospective exploration licences in Sierra Leone’s Eastern Province.
Funding from the investment will be used to acquire mining and processing equipment aimed at establishing initial production of roughly 2 kilograms of gold per month, creating early-stage cash flow while broader exploration activities are pursued along a seven-mile structural corridor. Under the agreement, GoldStone will receive an overriding royalty on the first 70 ounces of refined gold, obtain a right of first refusal over Mincorp’s gold offtake, and secure representation on the board. The arrangement supports the company’s strategy of building a production-backed exploration platform capable of self-funding growth, while also strengthening its footprint across the West African gold sector.
The company’s outlook remains constrained by weak financial performance, including ongoing losses, pressure on margins, negative free cash flow, and rising leverage. However, technical indicators provide a counterbalance, with the share price showing solid momentum above key moving averages. Valuation metrics remain challenged by a negative P/E ratio and the absence of dividend support, reflecting the company’s current loss-making position.
More about GoldStone Resources
GoldStone Resources Limited is an AIM-listed mining and development company focused on gold assets in Ghana, spanning projects from early-stage exploration through to production. Its flagship Akrokeri-Homase project in south-western Ghana hosts a JORC-compliant gold resource of 602,000 ounces along the Homase Trend, with current production centred at the Homase Mine. The company’s long-term strategy is to build a portfolio of high-quality gold projects along the prolific Birimian Gold Belt.
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