Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested a further A$800,000 (approximately £450,000) in Rincon Resources Pty Ltd (“Rincon”).
An Australian gold and base metals exploration company, as part of Rincon’s Initial Public Offering (IPO) for its imminent listing onto the Australian Securities Exchange (ASX).
This investment follows the Company’s previous investments in Rincon as announced on 22 June 2020, 23 June 2020 and 5 November 2020.
This further investment in Rincon was on the following terms:
· subscription for 4 million ordinary shares at 20 cents AUD for the total sum of A$800,000 via an IPO subscription agreement
Rincon had previously 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 December 2020.
Further to our announcement on 9 December 2020, Rincon has today advised the Company that ASX approval has now been received for Rincon to list on the ASX commencing Monday 21 December 2020. Upon this listing, Rincon will have 51,336,754 shares in issue having raised A$6 million as part of its IPO. Gunsynd will hold 8,461,943 shares in Rincon representing approximately 16.5%. Under ASX Listing Rules, Gunsynd has been required to sign an agreement which restricts disposal of 2,711,942 of its Rincon shareholding for a period of 24 months from the date of Rincon listing on the ASX.
Peter Ruse and Donald Strang, both directors of Gunsynd, have an interest in 500,000 and 300,000 shares in Rincon respectively as part of the current Rincon IPO fundraising.
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.
Hamish Harris 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 continues to establishing itself as one of the most highly sought-after Gold/copper regions in Australia. The recent success of Newcrest Mining (ASX:NCM) and Greatland Gold PLC (AIM: GGP) – Haverion Gold discovery has demonstrated by the exploration success and value creation delivered from this region of Western Australia . We believe Rincon IPO has been priced attractively and expect the listing to unlock significant value in months and years to come.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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.
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