REG - Gunsynd PLC - Investment in 1911 Gold Corporation

GunsyndAnnouncement

28/12/2023 07:00

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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. £200,000) (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 £200,000 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 (http://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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