TIDMGUN
RNS Number : 9838X
Gunsynd PLC
28 December 2023
Gunsynd plc
("Gunsynd" or the "Company")
Investment in 1911 Gold Corporation
Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it
has invested approximately CAD$350,000 (c. GBP200,000) (the
"Investment") into 1911 Gold Corporation (TSXV: AUMB) ("1911
Gold"), a junior gold development and exploration company located
in Manitoba, in the heart of the Rice Lake gold district within the
West Uchi greenstone belt in Canada.
The Investment was executed on the following terms:
-- subscription for 5,833,333 ordinary shares at CAD$0.06 per
share for total consideration of approximately GBP200,000 from the
Company's existing cash resources.
-- For each ordinary share subscribed for in 1911 Gold, the
Company has received a warrant over a new ordinary share with an
exercise price of CAD$ 0.10 per share and exercisable for a period
of 24 months from the date of closing of the offering by 1911
Gold.
-- The Investment by the Company is part of the CAD$ 3.9 million
private placement ("Offering") recently announced by 1911 Gold. The
financing received a lead order from renowned precious metals
investor Mr Eric Sprott.
-- Following the Investment Gunsynd will have approximately a 4.3% interest in 1911 Gold
About 1911 Gold:
1911 Gold is a junior explorer that holds a highly prospective,
consolidated land package totalling more than 63,000 hectares
within and adjacent to the Archean Rice Lake greenstone belt in
Manitoba, and also owns the True North mine and mill complex (Fully
Permitted) at Bissett, Manitoba.
1911 Gold believes its land package is a prime exploration
opportunity, with potential to develop a mining district centred on
the True North complex. The True North Mine has an existing NI
43-101 (2018) resource of 1m ounces at 6.4g/t ("Resource
Report").
The company also owns the Apex project near Snow Lake, Manitoba
and the Denton-Keefer project near Timmins, Ontario, and intends to
focus on organic growth and accretive acquisition opportunities in
North America.
Gary O'Connor, former President and Chief Executive Officer
("CEO") of Moneta Gold Inc. and an experienced geologist with over
35 years in the industry, has joined 1911 Gold as a key technical
advisor to assist in executing this strategy.
The gross proceeds raised from the Offering will be used by 1911
Gold as follows:
-- The proceeds are to be used to fund exploration programs at
1911 Gold's flagship Rice Lake property in Manitoba, focusing on
near-mine target areas.
-- The proceeds are also expected to be used to fund the review
and optimisation of the Resource Report as well as for general
corporate purposes.
For the year ended 31 December 2022, 1911 Gold had revenue of
CAD$ 5,884,000 and made a loss of CAD$ 11,387,000.
Peter Ruse, a director of Gunsynd, commented: "It very exciting
to have secured a position in a gold development and exploration
opportunity such as 1911. Its not often you can invest into a
company that owns a mill and mining complex, 1m ounces at an
attractive grade of 6.4g/t and a vast portfolio of exploration
tenure along strike in a first world mining jurisdiction all for a
very modest market cap of CAD $5m . Gunsynd was very pleased to be
investing alongside well renowned gold investor Eric Sprott who
corner stoned the CAD $3.9m fundraise. This only strengthens our
confidence of the potential upside and value creation amongst a
backdrop of record Gold prices"
For more information on 1911, shareholders are encouraged to
visit their website: www.1911gold.com
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.
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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