Announcement
Gunsynd PLC : Sunshine Minerals Update and Further Investment
RNS Number : 9200C
Gunsynd PLC
21 April 2017
Gunsynd plc ("Gunsynd" or the "Company")
Sunshine Minerals Update and Further Investment
Gunsynd Plc (AIM: GUN, NEX: GUN) is pleased to announce that Sunshine Minerals Limited ("Sunshine") has been granted a letter of intent by the Solomon Islands Ministry of Mines over its application for a prospecting licence over the Jejevo deposit and it is expected that a prospecting licence will be issued in due course.
Gunsynd has signed a subscription agreement with Sunshine to invest £200,000 by way of a convertible loan note ("Note"). The proceeds of the Note shall be used to pay for the costs relating to the issue of the prospecting licence and other costs relating to developing the resource and office costs in the Solomon Islands.
Terms of the investment:
Gunsynd is investing £200,000 by way of the Note paying interest of 2% per annum, payable in arrears on the redemption date. Subject to the Note not having been converted in the meantime, Gunsynd will be repaid in full 24 months from the date of issuance. Gunsynd is entitled to serve a Conversion Notice on the Company to convert the Note into up to 1,389,583 fully paid New Shares at the Conversion Price at any time which would then equate to Gunsynd holding in total 20% of the issued shares of Sunshine.
Hamish Harris, the Company's Executive Chairman, commented:
"This is extremely pleasing news. Funding the costs of licence applications is fraught with danger. Many promise, very few deliver. By obtaining the letter of intent, Sunshine are well on the way to achieving what they said they would do, and within a short timeframe. We expect this letter of intent will be converted in to a prospecting licence in the short term, after which Sunshine will look to develop a maiden JORC resource. Given the amount of data already available they are optimistic this will not be a long process. They and Gunsynd are both very keen for Sunshine to achieve a listing in London. Should it happen, we are of the belief this will achieve a particularly good outcome for Gunsynd shareholders with respect to return on investment."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The directors of Gunsynd accept responsibility for this announcement.
For further information please contact:
Gunsynd plc
+44 (0) 20 7440 0640
Hamish Harris
Nominated Adviser/NEX Exchange Corporate Adviser
+44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Liam Murray
Peterhouse Corporate Finance (Joint Broker)
+44 (0)20 7469 0930
Lucy Williams
This information is provided by RNS
The company news service from the London Stock Exchange
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