Gunsynd PLC Sunshine Minerals Update and Further Investment (9200C)
21 April 2017 - 4:00PM
UK Regulatory
TIDMGUN
RNS Number : 9200C
Gunsynd PLC
21 April 2017
Gunsynd plc ("Gunsynd" or the "Company")
Sunshine Minerals Update and Further Investment
Gunsynd Plc (AIM: GUN, NEX: GUN) is pleased to announce that
Sunshine Minerals Limited ("Sunshine") has been granted a letter of
intent by the Solomon Islands Ministry of Mines over its
application for a prospecting licence over the Jejevo deposit and
it is expected that a prospecting licence will be issued in due
course.
Gunsynd has signed a subscription agreement with Sunshine to
invest GBP200,000 by way of a convertible loan note ("Note"). The
proceeds of the Note shall be used to pay for the costs relating to
the issue of the prospecting licence and other costs relating to
developing the resource and office costs in the Solomon
Islands.
Terms of the investment:
Gunsynd is investing GBP200,000 by way of the Note paying
interest of 2% per annum, payable in arrears on the redemption
date. Subject to the Note not having been converted in the
meantime, Gunsynd will be repaid in full 24 months from the date of
issuance. Gunsynd is entitled to serve a Conversion Notice on the
Company to convert the Note into up to 1,389,583 fully paid New
Shares at the Conversion Price at any time which would then equate
to Gunsynd holding in total 20% of the issued shares of
Sunshine.
Hamish Harris, the Company's Executive Chairman, commented:
"This is extremely pleasing news. Funding the costs of licence
applications is fraught with danger. Many promise, very few
deliver. By obtaining the letter of intent, Sunshine are well on
the way to achieving what they said they would do, and within a
short timeframe. We expect this letter of intent will be converted
in to a prospecting licence in the short term, after which Sunshine
will look to develop a maiden JORC resource. Given the amount of
data already available they are optimistic this will not be a long
process. They and Gunsynd are both very keen for Sunshine to
achieve a listing in London. Should it happen, we are of the belief
this will achieve a particularly good outcome for Gunsynd
shareholders with respect to return on investment."
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
+44 (0) 20 7440 0640
Hamish Harris
Nominated Adviser/NEX Exchange Corporate Adviser
+44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Liam Murray
Peterhouse Corporate Finance (Joint Broker)
+44 (0)20 7469 0930
Lucy Williams
This information is provided by RNS
The company news service from the London Stock Exchange
END
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