Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested a further A$100,000 (approximately £54,700) 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 fundraise via a convertible loan to fund the pre-IPO activities and completion of the IPO.
Indicative Timetable for the IPO:
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.
