TIDMGUN
RNS Number : 5638A
Gunsynd PLC
30 September 2020
Gunsynd plc
("Gunsynd" or the "Company")
New Investment - Angold Resources Ltd
Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it
has invested C$100,000 (approximately GBP58,000) into the gold
exploration company Federal Gold Corp (to be renamed Angold
Resources Ltd subject to completion of a reverse takeover as
detailed below ("Angold" or the "Issuer")). This investment
complements the Company's recent investment in gold and copper
explorer Rincon Resources as announced on 22 and 23 June 2020.
Subject to a number of conditions, including receipt of
regulatory consents, TSX Exchange approval and completion of a
fundraising as further described below and in which Gunsynd is
participating, the Issuer will complete a reverse takeover (the
"RTO") of ZTR Acquisition Corp (ZTR.H:APH) ("ZTR"), whereby ZTR
will acquire all of the issued and outstanding share capital of the
Issuer. The 35,187,000 existing shares in the Issuer will be
exchanged for common shares of ZTR (the "Exchange Shares") on a
one-for-one basis.
ZTR is the former company Oyster Oil and Gas Ltd which was moved
to the NEX Board of the TSX Venture Exchange in June 2019 and in
which Gunsynd currently holds 462,500 shares. The RTO price of
C$0.40c values the existing Gunsynd holding of ZTR shares at
C$185,000 (approximately GBP107,000).
The Issuer is a widely-held private company which controls the
rights to the Uchi, Iron Butte, Dorado and Cordillera mineral
exploration projects located in the Province of Ontario, the State
of Nevada and the Republic of Chile, respectively. Following
completion, it is anticipated that exploration and development of
the Uchi and Dorado projects will be its primary focus. The
following selected financial information is taken from the
unaudited financial statements of Federal Gold Corp for the
three-month period ended July 31, 2020:
Total Assets C$232,720
Total Liabilities C$127,277
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Net Loss C$5,150
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Dorado Property (Chile)
The Dorado property is located in the Maricunga region of Chile,
approximately 135 km east of Copiapo. The property, which covers an
area of 1,600 hectares is reported to feature a significant but
poorly defined gold-rich porphyry system which outcrops at surface.
Additionally, the property is reported to be host to significant
zones of hydrothermal alteration at surface which have not been
explored or drilled.
Iron Butte Property (Nevada)
The Iron Butte Property is located 60 km south of Battle
Mountain, Nevada. The property, which covers an area of
approximately 200 hectares, features a well-defined bulk-tonnage
epithermal gold and silver system which outcrops at surface.
Federal Gold has an option to acquire the property by making a
series of staged cash and share payments totalling US$1,572,750
over six years and arranging for the issuance of 187,500 common
shares of the Company to the optionholder.
Uchi Property (Ontario)
The Uchi property is located approximately 80 km east of Red
Lake, Ontario in the Birch-Uchi greenstone belt. The western
portion of the property is adjacent to the past-producing South Bay
Cu-Zn-Ag mine. The eastern portion of the property is adjacent to
the past-producing Uchi Au mine. The property, which covers an area
of 5,232 hectares represents a regional exploration opportunity in
a greenstone belt with known zones of significant mineralization,
but which remains relatively underexplored.
Cordillera (Chile)
The Cordillera property is located in the Maricunga region of
Chile, approximately 100 km east of Copiapo. The property, which
covers an area of approximately 1,680 hectares, is located 7 km
south of the Maricunga Mine, formerly operated by Kinross, and 3 km
north of the Caspiche Deposit, now being developed by the Norte
Abierto Joint Venture between Barrick and Newmont. The Cordillera
property is an early stage property prospective for porphyry gold
and epithermal gold style mineralization which has not been
adequately explored.
The investment was executed on the following terms:
Subscription for 250,000 ordinary shares at C$0.40c for a total
consideration of C$100,000 (approximately GBP58,000) as part of a
proposed capital raising of up to C$8,000,000.
As a result, conditional on completion of the fundraising and
RTO, Gunsynd will hold 712,500 ordinary shares in Angold. A further
announcement will be made in due course.
Peter Ruse, a director of Gunsynd, commented: "We are pleased to
announce this investment into Angold Resources, an investment and
transaction that we hope will resurrect value from a holding that
had been largely written off. Angold represents an attractive entry
into two core projects situated in the two very mining friendly
jurisdictions of Chile and Nevada, USA."
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 /
Mark Rogers +44 (0) 20 7213 0880
Peterhouse Capital Limited
Lucy Williams +44 (0) 20 7469 0936
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END
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