Southstone Minerals Ltd V.SML

Alternate Symbol(s): FDGMF

Energy

Southstone Minerals Limited is a Canadian junior mining company. The Company is engaged in the acquisition, exploration, evaluation, development and mining of mineral properties. The Company holds a 43% interest in the Oena Diamond Mine (Oena), which is located in the Northern Cape Province, Republic of South Africa that consists of one New Order Mining Lease. Oena is a producing alluvial diamond property. Oena is approximately 8,800 hectares in size and covers a 4.8 kilometers (kms) wide strip along a 15 kms length of the lower Orange River. The property has two separate and distinctly different aged diamondiferous bearing paleochannel gravels: Proto-terraces and Meso-terraces. Its subsidiaries include TGV Resources (Pty) Ltd, African Star Minerals (Pty) Limited and GAH Mining (Pty) Ltd.

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Southstone Minerals Ltd > SML's latest numbers

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Comment by hempsteron Jul 12, 2020 7:59am

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Post# 31256960

RE:RE:RE:SML's latest numbers

You are right with CCML being an energy company, but their relationship with SML was / is pretty strong. In the past, they were SML's number 1 creditor and have recently become one of SML's largest, if not the largest shareholder.

We did see three debt-related transactions during the past few months:

1. Sale of Kwena Group.

Kevin Gallagher, a director of the company and afaik founder of Kwena, bought the company back. Part of this transaction were the return of 3.9 million shares in Gallaghers possesion, and the forgiveness of loans totaling $1.2 million that Gallagher had lent SML.

Here's the link to NR for more info: https://southstoneminerals.com/southstone-announces-related-party-transaction-disposition-of-the-kwena-group/

2. Settlement of outstanding debt with CCML

CCML had financed some of SML's past explorations in Angola and Botswana, in total SML had $500k in debt with CCML. Two directors were also creditors and SML owed them $200k in total. For these $700k, SML issued 7.5 million new shares. Due to this transaction, became the owner of 19.9% of all outstanding shares.

Here's the link to that NR: https://southstoneminerals.com/southstone-reports-shares-for-debt-settlement/

3. Settlement of debt announced in the latest NR

$35k of debt to two creditors were settled by the issuance of 700k shares.
Link: https://southstoneminerals.com/q2-and-q3-2020-operational-update/

Regarding the production numbers: in Q1, Bluedust, a contractor operating the Oena mine managed to process 167k tonnes of rock. African Star Minerals (owner of the Oena property and subsidiary of SML managed to process over 174k tonnes in a JV with Oryx. The total combined production was therefore 344k. Currently Bluedust seems to be the only active operator at Oena per SML's latest NR, this is probably where the wish to be able to process 300k tonnes you refer to in your comment comes from.

Link to Q1 production: https://southstoneminerals.com/q1-2020-operational-update/
Link to latest NR: https://southstoneminerals.com/q2-and-q3-2020-operational-update/