TIDMGUN
RNS Number : 6708D
Gunsynd PLC
21 February 2020
Gunsynd plc
("Gunsynd" or the "Company")
Quarterly Investor Update
Gunsynd Plc (AIM: GUN, NEX: GUN) is pleased to announce the
following investor update for the quarter ending 31 January 2020
regarding its current holdings and activities acquired and managed
as per its investing policy.
Human Brands International ("Human Brands")
Human Brands is a private company that owns, licenses, and
markets a portfolio of liquor brands. Its two key products are an
aged tequila (Copa Imperial Tequila) and a Japanese Whiskey (Shinju
Whiskey).
On 27 January 2020, the Company announced that it had rolled up
its existing investments in Human Brands into a new GBP378,575
convertible loan note.
Human Brands has noted a marked increase in the sales volumes of
Shinju in the past 3 months, when compared to the comparative
period in the previous year. A further number of distribution deals
have recently been signed, extending distribution of Shinju to
include Florida, California and New Jersey, in addition to
Maryland/DC, Massachusetts and New York, with other states likely
to follow in the near future.
Human Brands has entered into conditional agreements with the
owners of the Santo Coyote restaurant in Guadalajara to develop two
new bar/restaurants in conjunction with Santo Coyote management. In
addition, Human Brands has conditionally taken a minority stake in
a new bar (Santo Cantina), within the Santa Coyote restaurant, the
consideration for which will be settled in a cash and shares. Human
Brands' Armero tequila brand will be heavily promoted on the menu
at these locations and Shinju will also be available.
As announced on 10 December 2019, Human Brands intends to
re-domicile its business from the US to the UK and change its name
to Rogue Baron Ltd and then raise further funds. Further details on
this will be announced in due course.
United Oil and Gas Plc ("UOG")
UOG is an independent oil & gas company established in 2015
by a former Tullow Oil team. Its strategy is to acquire assets
where the management team's experience can drive near-term activity
and unlock previously untapped value.
The Company holds 1.93 million shares in UOG representing
approximately 0.56% of UOG's issued share capital. UOG's shares are
admitted to trading on the AIM Market of the London Stock
Exchange.
Gunsynd was pleased to note that UOG announced on 7 August 2019,
the proposed acquisition of Rockhopper Egypt Pty Ltd ("Rockhopper
Egypt") effective 1 January 2020, which constituted a reverse
takeover of UOG which is expected to become effective shortly.
Rockhopper Egypt owns a 22% non-operating interest in the Abu
Sennan Concession and associated development leases in Egypt.
The Abu Sennan Concession, which lies in the Western Dessert of
Egypt, is governed by a production sharing contract. Seven
development leases have been awarded covering the eight fields that
have been discovered and put into production. An exploration
licence covers the rest of the concession area.
The consideration for Rockhopper Egypt was US$16 million
(approximately GBP12.2 million).
In September 2019, UOG announced it was awarded four blocks in a
North Sea licensing round which follows on from UOG signing a
non-binding Heads of Terms on an agreement to sell North Sea blocks
15/18d and 15/19b to Anasuria Hibiscus UK Limited for a headline
consideration of up to US$5 million.
On 22 January 2020, UOG announced the ASH-2 well has been
completed to allow selective production from both an upper and
lower reservoir interval. The upper and lower intervals were tested
separately at maximum gross rates of 7,027 and 3,851 bopd
respectively.
ASH-2 came on stream on 2 January and has been consistently
producing at over 3,000 bopd (660 bopd net to Rockhopper's 22%
interest) on a 32/64" choke. The well will continue to be monitored
over the coming months, and during this period, the interpretation
of the test data and the longer-term planning for the ASH
field-development will continue with the joint venture partners and
Egyptian General Petroleum Corporation ('EGPC'). The rig is
currently being mobilised for the first well in the 2020 infill
programme (El Salmiya 5) which is expected to spud shortly.
Since ASH-2 came on stream, gross production from the Abu Sennan
licence has averaged c.8,000 boepd, which equates to c.1,760 boepd
net to Rockhopper's 22% interest.
Sunshine Minerals Limited ("Sunshine")
The Company has an 18.2% interest in Sunshine Minerals, a
company with mineral interests in the Solomon Islands.
On 2 December 2019, Sunshine announced that an ASX listed
company, Malachite Resources ("Malachite"), had entered into a
conditional share subscription agreement with Sunshine to acquire a
15% stake. The Company understands that Malachite continues to
undertake due diligence on the transaction including site visits
and analysis of the relevant drilling data.
On 27 September 2019, the Company announced that Sunshine had
relinquished its interest in the Tausere bauxite deposit.
On 20 December 2019, the Company announced a dispute between
Axiom Mining Limited ("Axiom") and the Mines and Minerals Board of
the Solomon Islands ("MMERE") relating to certain of Sunshine's
assets was still ongoing. The Company notes that the Solomon
Islands government purportedly cancelled Axiom's foreign investor
certificates for alleged failure to complete surveys and hold a
provincial business licence.
Gunsynd's interest in Sunshine Minerals Limited is likely to be
diluted by certain consultants' fees owed being paid in equity, and
the Malachite share subscription if it were to proceed.
Kolosori Nickel Limited ("Kolosori")
On 4 December 2019, the Company announced it had purchased a
7.67% stake in Kolosori for a consideration of GBP45,000. Kolosori
owns 80% of the nickel prospecting licence PL05/19 over the
Kolosori Prospect in the Solomon Islands.
In addition, Gunsynd was granted a 90 day option to purchase a
further 22.33% of Kolosori for GBP135,000. Given the history of
Kolosori and the offtake agreements signed for nickel laterite in
the area, the Gunsynd directors believe that the licence has a
value in excess of its entry price.
Gunsynd is currently talking to a number of parties with respect
to financing the work programme via a listed shell.
Strong interest remains in nickel due to both supply constraints
in Indonesia and the Philippines and also the growing fashion for
electric cars.
Oyster Oil and Gas Limited ("Oyster")
On 29 November 2019, the Company announced it had conditionally
entered into a binding term sheet with Sajawin Pty Ltd ("Sajawin")
to conditionally sell all of its shares in Oyster for a
consideration of GBP260,000.
Sajawin continues to undertake the necessary work to meet the
conditions precedent to conclude this deal. To date, Gynsynd has
received GBP20,000 of the consideration.
As notified on 2 July 2019 Oyster has reached an "in principle"
agreement with the Government of Madagascar for a two year
extension to the current exploration phase, however this has still
yet to be formally documented.
Brazil Tungsten Holdings Limited ("BTHL")
On 7 February 2020, the Company announced that it had been
notified by BTHL, a company in which it has a 6.18% interest, that
BTHL had very constrained working capital and that, in order to
continue with its operations, it would need to undertake a deep
discounted rights issue, which would lead to a significant dilution
in Gynsynd's shareholding or alternatively that BTHL would place
itself into administration which would reduce Gunsynd's interest to
nil. A further announcement will be made in due course.
BTHL, a legacy asset of the company, has a current written down
value in Gunsynd's balance sheet of GBP400,000 which represents
approximately 17% of Gunsynd's net asset value as stated in its
balance sheet for the year ended 31 July 2019.
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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