Gunsynd PLC - Update on Sunshine Minerals
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 £200,000 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 

 


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