Southstone shares resume trading on TSX-V

Southstone Minerals Limited announced the resumption of trading on the TSX Venture Exchange on July 27, 2026, ending a trading halt that began on January 10, 2024. The halt was lifted after the company addressed TSX-V Policy 3.1 deficiencies by appointing an independent director, an audit committee chair, and a CFO separate from the CEO.

The company also issued a correction to its condensed consolidated interim financial statements for the nine months ended May 31, 2026. The adjustment aligns basic and diluted EPS calculations with IAS 33, switching from total consolidated net income to net income attributable to Southstone shareholders. Corrected net income attributable to shareholders is $195,498 for the nine-month period and $108,236 for the three-month period. The correction is purely accounting-driven and does not alter net income, assets, liabilities, or equity.

A separate release detailed the contract mining revenue split between subsidiary African Star Minerals (ASM) and contract miner Rietput Delwery BK. For tender sales ≥10 million ZAR, the split is 80% to Rietput and 20% to ASM. For sales <10 million ZAR, it is 85% to Rietput and 15% to ASM. Southstone's effective economic interest is 8.60% or 6.45% respectively. Consolidated revenue is reported on a gross basis and is not indicative of amounts attributable to Southstone shareholders.

Additionally, a July 6, 2026 release noted the mutual termination of the binding term sheet with Afrium Energy for a proposed uranium asset acquisition in Botswana. No shares were issued and no royalty was granted.

Southstone Minerals Limited (SML) has resumed trading, a procedural milestone that restores market liquidity and compliance but does not fundamentally alter the company's financial or operational trajectory. The recent EPS correction is a standard accounting compliance measure with zero impact on cash flow, profitability, or operational capacity.

The termination of the Afrium Energy deal removes a potential diversification and capital injection avenue, leaving the company entirely dependent on Oena diamond sales and external financing. The revenue split structure heavily favors the contract miner, capping Southstone's economic upside at 6.45% to 8.60% of gross tender proceeds. This structural limitation, combined with the company's explicit going concern warning, means the trading resumption is a routine administrative update rather than a material operational improvement.

The stock price reaction, jumping from $0.01 to $0.06, reflects short-term liquidity relief, but the underlying balance sheet remains critically impaired.

Southstone Minerals Limited is a mining exploration and development company focused on the Oena Diamond Mine in the Northern Cape Province of South Africa. The company holds a 43% ownership interest in African Star Minerals (ASM), which operates the alluvial diamond property. Southstone consolidates 100% of ASM's results due to control.

The mine is currently in production, but the existing mining pit is nearing its limit. The company relies on contract mining arrangements with Rietput Delwery BK and requires six to eight weeks of overburden stripping before production can resume in that area. Southstone has been selling diamonds since 2014, generating cumulative gross sales of approximately $28.37 million USD from roughly 15,464 carats. Special diamonds exceeding 10.8 carats have driven a disproportionate share of recent revenue.