Gunsynd PLC Update on Brazil Tungsten (3755C)
February 07 2020 - 7:48AM
UK Regulatory
TIDMGUN
RNS Number : 3755C
Gunsynd PLC
07 February 2020
Gunsynd plc
("Gunsynd" or the "Company")
Brazil Tungsten Holdings Update
Gunsynd Plc (AIM: GUN, NEX: GUN) announces that it has been
notified by Brazil Tungsten Holdings Limited ("BTHL"), a company in
which Gunsynd has a 6.18% shareholding, that it currently has very
constrained working capital and in order to continue its operations
in Brazil, will need to either undertake a deep discounted rights
issue, which would result in a very significant dilution of
Gunsynd's shareholding if Gunsynd elected not to participate, or
place itself into administration, which would be likely to reduce
Gunsynd's interest in BTHL to nil. A further announcement will be
made in due course.
BTHL has a current written down value on Gunsynd's balance sheet
of GBP400,000 and this represents approximately 17% of Gunsynd's
net asset value as stated in its balance sheet for the year ended
31 July 2019 announced on 10 December 2019.
Hamish Harris, Chairman commented "This is a legacy asset that
has been written down over previous periods. Gunsynd continues to
concentrate on its core investments on which an update will be made
in the near future"
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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 / Liam Murray +44 20 7213 0880
Peterhouse Corporate Finance
Lucy Williams +44 20 7469 0930
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 or any third party'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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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