DJ Gunsynd PLC Strategic Investment - Rincon Resources Pty Ltd
RNS Number : 6412Q
22 June 2020
("Gunsynd" or the "Company")
Strategic Investment - Rincon Resources Pty Ltd
Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested A$200,000 (approximately GBP110,000) in Rincon Resources Ltd ("Rincon"), an Australian gold and base metals exploration company, on the following terms:
-- Subscription for 12,400,000 ordinary shares at A$0.0166 for the total sum of A$200,000
-- The Gunsynd PLC investment will represent approximately 24.5% of the enlarged capital structure of Rincon Resources following the completion of a A$600,000 capital raising.
-- Use of funds will include the acquisition of a valuable historical magnetic database, commence Heritage clearance activities, and final preparations for initial drill programs at the South Telfer Project, WA.
About Rincon Resources
Rincon Resources is a Western Australian ("WA") focused gold and base metals exploration company. It holds the rights to three highly prospective projects in WA, with a main focus on the South Telfer Project, covering 50,000-hectares in the Paterson province. The South Telfer Project is approximately 12km south of Newcrest Limited's Telfer mine. Rincon's Laverton and Kiwirrkurra Projects are also highly prospective gold and base metals projects.
Peter Ruse, Gunsynd PLC Director, commented: "We believe the investment in Rincon Resources offers Gunsynd a highly attractive entry point into a copper/gold exploration company with a strong board and management team. Rincon has a very exciting portfolio of copper/gold projects - particularly the South Telfer project in the Paterson region of Western Australia. The Paterson region is fast becoming one of the most highly sought-after gold regions in Australia. There has been past and present exploration success for existing ASX and AIM mining exploration companies - most recently Newcrest Mining (ASX: NCM) and Greatland Gold PLC (AIM: GGP) - Haverion Gold discovery. We look forward to working with the Rincon team to be in a position to unlock significant value via their exploration programs in the coming months."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
The Directors of Gunsynd accept responsibility for this announcement.
For further information please contact:
Gunsynd plc Hamish Harris +44 20 7440 0640 Cairn Financial Advisers LLP James Caithie / Sandy Jamieson +44 20 7213 0880 Peterhouse Corporate Finance Lucy Williams +44 20 7469 0930
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(END) Dow Jones Newswires
June 22, 2020 05:13 ET (09:13 GMT)