Gunsynd PLC New Investment - Eagle Mountain Mining (6803T)
22 July 2020 - 4:00PM
UK Regulatory
TIDMGUN
RNS Number : 6803T
Gunsynd PLC
22 July 2020
Gunsynd plc
("Gunsynd" or the "Company")
New Investment - Eagle Mountain Mining
Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it
has invested A$200,000 (approximately GBP110,000) in Eagle Mountain
Mining Limited ("Eagle Mountain"), an ASX listed copper-gold
exploration and development company (ASX: EM2). This investment
provides Gunsynd with exposure to copper exploration which
compliments the Company's recent investment in gold explorer Rincon
Resources as announced on 22 and 23 June 2020.
The Eagle Mountain investment was executed on the following
terms:
-- subscription for 1,538,462 ordinary shares at A$0.13 for a total consideration of A$200,000;
-- the investment is a part of a of A$3.0 million capital raising supported by institutional investors; and
-- the intended use of funds will include a surface diamond drilling program of approximately 2,000 metres at the
Eagle Mountain's high-grade Oracle Ridge Copper Mine Project ("Oracle Ridge") scheduled to commence Q3 2020, for
the potential acquisition of prospective ground in the vicinity and to provide additional working capital for the
company.
About Eagle Mountain Mining Limited
Eagle Mountain Mining Limited (ASX: EM2), established in 2017,
is a copper-gold explorer focused on the strategic exploration and
development of advanced and greenfield projects in Arizona.
Arizona is at the heart of America's mining industry and home to
some of the world's largest copper discoveries, now owned by major
mining companies including BHP, Rio Tinto, Freeport McMoRan and
Hudbay. Eagle Mountain's Oracle Ridge and Silver Mountain Projects
are within the Laramide Arc which hosts many of these significant
copper porphyry deposits.
Oracle Ridge is a high grade, advanced stage underground
copper/gold/silver project. The project includes an NI43-101
resource of 11.7mt at 1.57%Cu, 17.47g/t Ag and 0.18g/t Au. Eagle
Mountain believes there is significant potential to expand the
known resources through additional drilling, along with exploration
at depth to define the source of the mineralisation.
Peter Ruse, a director of Gunsynd, has an interest in 467,422
shares, representing approximately 0.4% of Eagle Mountain's issued
share capital prior to the current fundraising.
Peter Ruse, a director of Gunsynd, commented: "We are very
pleased to announce this investment in Eagle Mountain, which will
offer direct exposure to copper via the development and exploration
of the Oracle Ridge project in Arizona, USA.
Copper prices hit a two-year high of $6,545 a tonne last week
(13 July 2020), boosted by concerns over strikes and supply from
Chile - the world's top copper producer. This marked a gain of more
than 40% since touching four-year lows in March 2020 when economic
activity slumped along with demand. Oracle Ridge contains high
grade copper resources with significant gold and silver. Historical
drill results of 7.7m @ 5.11% Cu, 9.1m@ 3.97% Cu and 18m @ 2.84% Cu
show the potential of ore body.
We believe Eagle Mountain has a high-quality board and
management team that have a proven track record of exploration and
development success in the mining industry both in Australia and
overseas. We understand this capital raising received support from
the institutional investor market in Australia, displaying strong
conviction to gain listed copper exposure."
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 +44 (0) 20 7213 0880
Peterhouse Capital Limited
Lucy Williams +44 (0) 20 7469 0936
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END
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