REG - Gunsynd PLC - Update on Black Schist Projects & share disposal

GunsyndAnnouncement

27/07/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230727:nRSa3311Ha&default-theme=true

RNS Number : 3311H  Gunsynd PLC  27 July 2023

Gunsynd Plc

("Gunsynd" or the "Company")

 

Update on Conditional Farm-in to Black Schist Projects in Finland and partial
disposal of Charger Metals shares

 

Gunsynd (AIM: GUN; AQSE: GUN) is pleased to announce that it has signed  a
subscription and shareholders agreement with respect to the conditional farm
in agreement with Metals One Plc ("Metals One") which  was previously
announced by the Company on 21 June 2022 as a binding heads of terms to farm
into the Black Schist Projects in Finland (the "Projects"), containing a
nickel-zinc-copper-cobalt deposit proximal, and analogous, to the large
Talvivaara mine.

 

Gunsynd agreed to provide funding to Metals One of £1 million for the
development of the Projects (the "Investment"), for which it will be issued
such number of new shares in the capital of Finnaust Mining Northern OY
("Finnaust") (which holds the Projects), which equal 25% of the fully diluted
voting rights in Finnaust (the "Farm-in").

 

The Investment is conditional upon Metals One's ordinary shares being admitted
to trading on the AIM market of the London Stock Exchange ("Admission") and
the simultaneous acquisition of Finnaust by Metals One. The Company
understands that Admission of Metals One and the simultaneous acquisition of
Finnaust is now likely to take place on or around 31 July 2023.

 

Gunsynd will provide the £1 million funding and receive a total of 25% of
Finnaust (assuming no further share issuances by Finnaust) over a period of 18
months in four equal tranches, with the first being due 90 days after Metals
One's Admission and thereafter at six monthly intervals, to be invested in the
development of the Projects.

 

Warrants and Board Representation

 

In addition to Gunsynd's 25 percent interest in Finnaust, it will receive
1,500,000 warrants to subscribe for new ordinary shares in Metals One at the
admission price exercisable over a period of three and a half years from the
date of Admission.

 

Following settlement of the first Farm-in instalment, Gunsynd will have the
right to appoint a director to the board of Finnaust.

 

Sale of investee company shares

 

Gunsynd has recently sold 440,000 ordinary shares in Charger Metals NL
("Charger") (ASX: CHR), for AUD$192,466 (approx £100,000) at an average price
of AUD$ 0.437 per ordinary share. Gunsynd continues to hold 2,537,060 shares
in Charger representing approximately 4.1% of the issued share capital of
Charger.

 

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                   +44 (0) 78 7958 4153

 Hamish Harris/ Peter Ruse

 Cairn Financial Advisers LLP  +44 20 7213 0880

 James Caithie / Liam Murray

 Peterhouse Capital Limited    +44 20 7469 0936

 Lucy Williams

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAEXKAFSDEAA