Gunsynd PLC Further Investment Rincon Resources and IPO Update (2992E)

TIDMGUN

RNS Number : 2992E

Gunsynd PLC

05 November 2020

Gunsynd plc

("Gunsynd" or the "Company")

Further Investment Rincon Resources and ASX IPO Update

Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested a further A$100,000 (approximately GBP54,700) in Rincon Resources Pty Ltd ("Rincon"), an Australian gold and base metals exploration company, via a convertible loan. This investment follows its previous investments in Rincon as announced on the 22 and 23 June 2020. Gunsynd has also received an update on Rincon's proposed Australian Securities Exchange (ASX) listing which is detailed below.

This further investment in Rincon was on the following terms:

-- subscription for ordinary shares via the total sum of A$100,000 via a convertible loan agreement; and

-- the convertible loan will convert at a 30% discount to the planned IPO price of Rincon listed shares.

Rincon announced it had lodged a prospectus with Australian Securities and Investments Commission (ASIC) for an Initial Public Offering (IPO) to raise a minimum of A$5 million, targeted for early December (refer to the Indicative Timetable below).

Gunsynd's investment is part of a A$400,000 fund raise via a convertible loan to fund the pre-IPO activities and completion of the IPO.

Indicative Timetable for the IPO:

 
 Lodgement of Prospectus with the ASIC -          3 November 2020 
 Exposure Period begins -                         3 November 2020 
 Opening Date -                                  10 November 2020 
 Closing Date -                                  24 November 2020 
 Issue of Offer Shares and dispatch of holding   30 November 2020 
  statements - 
 Expected date for quotation on ASX -            10 December 2020 
 

About Rincon Resources

Rincon Resources is a Western Australian ("WA") focused gold and base metals exploration company. It currently holds the rights to three highly prospective projects in WA, the most significant of which, South Telfer, a 50,000-hectare project in the Paterson province, is approximately 12km south from Newcrest Limited's Telfer mine. The two others are highly prospective copper-gold projects - Laverton and Kiwirrkurra.

Peter Ruse, Gunsynd plc Director, commented: "Gunsynd is pleased to continue to add to its existing investment in Rincon Resources. Rincon has what we believe to be a very exciting portfolio of copper/gold projects - particularly the South Telfer project in the Paterson region of Western Australia. The Paterson region is establishing itself as one of the most highly sought-after Gold/copper regions in Australia. There has been past and present exploration success for existing ASX and AIM mining exploration companies, most recently Newcrest Mining (ASX: NCM) and Greatland Gold PLC (AIM: GGP) - Haverion Gold discovery. We believe Rincon will be in a position to unlock significant value via this upcoming IPO in the coming months."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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 
 Hamish Harris / Peter Ruse     [phone] 
Cairn Financial Advisers LLP 
 James Caithie / Liam Murray    [phone] 
Peterhouse Capital Limited 
 Lucy Williams                  [phone] 
 

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November 05, 2020 02:00 ET (07:00 GMT)