REG - Gunsynd PLC - Investee Company Update – Aberdeen Minerals Ltd

GunsyndAnnouncement

25/03/2024 12:30

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RNS Number : 1856I  Gunsynd PLC  25 March 2024

Gunsynd plc

 

("Gunsynd" or the "Company")

 

Investee Company Update - Aberdeen Minerals Ltd

 

Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce a corporate update
from its investee company Aberdeen Minerals Limited ("Aberdeen"), a UK based
Nickel-Copper exploration company, that the company has completed a
conditional equity financing round supported by a new strategic shareholder.

 

Aberdeen announced an equity financing of up to £5.5 million to invest in its
mineral exploration programmes for deposits of nickel, copper and cobalt in
North East Scotland. Responsibly sourced and secure supplies of these
metallic raw materials used in batteries and electrification are critical to a
just energy transition in Scotland and the UK.

The financing comprises:

·    A conditional cornerstone investment by Central Asia Metals plc
("CAML") of £3 million at 8.5 pence per share to acquire a
28.7% shareholding in Aberdeen ("Initial Investment");

·    Warrants to be granted to CAML to invest an additional £2 million at
11 pence per share, which, if exercised, would take CAML ownership to 37.8%;

·    An Entitlement Offer to existing shareholders to raise up to an
additional £0.5 million at 8.5 pence per share.

In addition, as part of CAML's investment, and whilst CAML's shareholding
remains above 10% of Aberdeen's issued share capital, CAML will have the right
to nominate a director to the board of Aberdeen. Louise Wrathall, CAML's
Executive Director of Corporate Development, will join the Aberdeen board upon
completion of the Initial Investment.

CAML is a UK mining company trading on the AIM market of the London Stock
Exchange with a market value of over £300 million. It owns and operates the
Kounrad SX-EW copper operation in central Kazakhstan and the Sasa zinc-lead
mine in North Macedonia.

CAML's overall investment will fund:

·    Approximately 10,000 metres of drilling in two phases at Arthrath,
aimed at determining the continuity of the high-grade mineralised
intersections already identified at depth;

·    Should this drilling be successful, the preparation of a Mineral
Resource Estimate ('MRE') and scoping level financial studies would be
undertaken;

·    The continuation of Aberdeen's grant-supported metallurgical testwork
in association with the UK Automotive Transformation Fund, a funding programme
created to support the large-scale development of a high-value end-to-end
electrified automotive supply chain in the UK; and

·    Soil geochemistry, ground geophysics and some exploratory drilling of
district scale targets and ongoing generative work across the prospective
Northeast Scotland region.

Completion of CAML's investment is subject to customary closing conditions, as
well as:

·    The approval of certain resolutions at a general meeting of
Aberdeen's shareholders;

·    The granting of clearance regarding the UK National Security and
Investment Act 2021; and

·    The granting of merger clearance in respect of notification
requirements under the Republic of North Macedonia's Law on the Protection of
Competition.

Gunsynd holds 2,000,000 ordinary shares which were purchased at a price of 7.5
pence per share for a total consideration of £150,000.

 

About Aberdeen Minerals Limited:

 

Aberdeen Minerals is a privately owned UK company focused on the exploration
and development of battery metal deposits in North East Scotland. Active since
2018, the company has partnered with landowners through exclusive land access
and exploration agreements over geologically prospective areas of
Aberdeenshire. Demand is growing for battery metals, including those targeted
by the company in North East Scotland, which are strategically important for
long term, responsibly sourced and secure supplies of the raw materials
critical to a just energy transition in Scotland and the UK.

More information can be found on Aberdeen's website: www.aberdeenminerals.com
(http://www.aberdeenminerals.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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