Gunsynd PLC Update on Sunshine Minerals (2350B)
19 September 2018 - 5:01PM
UK Regulatory
TIDMGUN
RNS Number : 2350B
Gunsynd PLC
19 September 2018
Gunsynd plc
("Gunsynd" or the "Company")
Update on Sunshine Minerals
Gunsynd Plc (AIM: GUN, NEX: GUN) announces an update regarding
its investee company, Sunshine Minerals ("Sunshine"). Gunsynd has
been informed by the management of Sunshine that Metminco Limited
(AIM: MNC, ASX: MNC) has entered into a binding term sheet with
Sunshine to conditionally acquire 100% of the shares in Sunshine as
set out below (the "Transaction"):
a) a non-refundable deposit of A$50,000 to be paid within 10
days, which is to be used to pay part of the surface access fees
payable for the Jejevo Project;
b) A$1,500,000 less the deposit and any agreed Sunshine debt
through the issue of 250,000,000 Metminco shares at a deemed issue
price of A$0.006 each;
c) A further 250,000,000 Metminco shares upon announcement to
the ASX by Metminco of an initial JORC compliant resource estimate
at Jejevo Nickel Project of at least 125,000 tonnes of contained
nickel metal at a cut-off grade of not less than 0.7% nickel, which
must be based upon exploration information delivered to Metminco by
Sunshine and exploration work undertaken by Metminco in the amount
of not greater than A$500,000; and
d) the issue of 500,000,000 Metminco Shares upon the receipt by
Sunshine of a mining licence over its Jejevo Nickel Project.
The Transaction is conditional, inter alia, on completion of due
diligence on Sunshine to the satisfaction of Metminco, the
completion of a minimum of A$3m equity capital raising by Metminco
and receipt of various waivers and regulatory approvals.
Currently, Gunsynd holds 10% of the issued share capital of
Sunshine and a GBP200,000 convertible loan note which converts into
a further 10% of Sunshine's issued share capital. As part of the
Transaction, Gunsynd has agreed to convert its convertible loan
note. This will result in Gunsynd owning 4,200,000 shares in
Sunshine out of a total of 21,230,000 shares representing
approximately 19.8% of the issued share capital.
Metminco is raising A$3,000,000 in conjunction with the
Transaction and Gunsynd has agreed to subscribe for A$50,000 of
shares. Metminco has also stated its intention to apply for the
cancellation of the admission of its shares to trading on AIM.
Hamish Harris, Executive Chairman, commented: "The Board is
pleased to have, conditional on completion, been able to once again
swap its exposure from a private company to that of a listed
company whilst at the same time enabling Sunshine to access funding
and move the project towards mining. The transaction also removes
the need for any potential future funding by Gunsynd. The Company,
however, maintains its exposure to the upside potential of the
project and now has the ability to realise the investment at an
appropriate time".
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 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
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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