DJ Gunsynd PLC New Investment - Eagle Mountain Mining
RNS Number : 6803T
22 July 2020
("Gunsynd" or the "Company")
New Investment - Eagle Mountain Mining
Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested A$200,000 (approximately GBP110,000) in Eagle Mountain Mining Limited ("Eagle Mountain"), an ASX listed copper-gold exploration and development company (ASX: EM2). This investment provides Gunsynd with exposure to copper exploration which compliments the Company's recent investment in gold explorer Rincon Resources as announced on 22 and 23 June 2020.
The Eagle Mountain investment was executed on the following terms:
-- subscription for 1,538,462 ordinary shares at A$0.13 for a total consideration of A$200,000; -- the investment is a part of a of A$3.0 million capital raising supported by institutional investors; and -- the intended use of funds will include a surface diamond drilling program of approximately 2,000 metres at the Eagle Mountain's high-grade Oracle Ridge Copper Mine Project ("Oracle Ridge") scheduled to commence Q3 2020, for the potential acquisition of prospective ground in the vicinity and to provide additional working capital for the company.
About Eagle Mountain Mining Limited
Eagle Mountain Mining Limited (ASX: EM2), established in 2017, is a copper-gold explorer focused on the strategic exploration and development of advanced and greenfield projects in Arizona.
Arizona is at the heart of America's mining industry and home to some of the world's largest copper discoveries, now owned by major mining companies including BHP, Rio Tinto, Freeport McMoRan and Hudbay. Eagle Mountain's Oracle Ridge and Silver Mountain Projects are within the Laramide Arc which hosts many of these significant copper porphyry deposits.
Oracle Ridge is a high grade, advanced stage underground copper/gold/silver project. The project includes an NI43-101 resource of 11.7mt at 1.57%Cu, 17.47g/t Ag and 0.18g/t Au. Eagle Mountain believes there is significant potential to expand the known resources through additional drilling, along with exploration at depth to define the source of the mineralisation.
Peter Ruse, a director of Gunsynd, has an interest in 467,422 shares, representing approximately 0.4% of Eagle Mountain's issued share capital prior to the current fundraising.
Peter Ruse, a director of Gunsynd, commented: "We are very pleased to announce this investment in Eagle Mountain, which will offer direct exposure to copper via the development and exploration of the Oracle Ridge project in Arizona, USA.
Copper prices hit a two-year high of $6,545 a tonne last week (13 July 2020), boosted by concerns over strikes and supply from Chile - the world's top copper producer. This marked a gain of more than 40% since touching four-year lows in March 2020 when economic activity slumped along with demand. Oracle Ridge contains high grade copper resources with significant gold and silver. Historical drill results of 7.7m @ 5.11% Cu, 9.1m@ 3.97% Cu and 18m @ 2.84% Cu show the potential of ore body.
We believe Eagle Mountain has a high-quality board and management team that have a proven track record of exploration and development success in the mining industry both in Australia and overseas. We understand this capital raising received support from the institutional investor market in Australia, displaying strong conviction to gain listed copper exposure."
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/ Peter Ruse +44 (0) 78 7958 4153 Cairn Financial Advisers LLP James Caithie / Liam Murray +44 (0) 20 7213 0880 Peterhouse Capital Limited Lucy Williams +44 (0) 20 7469 0936
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(END) Dow Jones Newswires
July 22, 2020 02:00 ET (06:00 GMT)