New Investment - Angold Resources Ltd

RNS Number : 5638A

Gunsynd PLC

30 September 2020

 

Gunsynd plc

("Gunsynd" or the "Company")

New Investment - Angold Resources Ltd

Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce that it has invested C$100,000 (approximately £58,000) into the gold exploration company Federal Gold Corp (to be renamed Angold Resources Ltd subject to completion of a reverse takeover as detailed below ("Angold" or the "Issuer")).  This investment complements the Company's recent investment in gold and copper explorer Rincon Resources as announced on 22 and 23 June 2020.

Subject to a number of conditions, including receipt of regulatory consents, TSX Exchange approval and completion of a fundraising as further described below and in which Gunsynd is participating, the Issuer will complete a reverse takeover (the "RTO") of ZTR Acquisition Corp (ZTR.H:APH) ("ZTR"), whereby ZTR will acquire all of the issued and outstanding share capital of the Issuer. The 35,187,000 existing shares in the Issuer will be exchanged for common shares of ZTR (the "Exchange Shares") on a one-for-one basis.

ZTR is the former company Oyster Oil and Gas Ltd which was moved to the NEX Board of the TSX Venture Exchange in June 2019 and in which Gunsynd currently holds 462,500 shares. The RTO price of C$0.40c values the existing Gunsynd holding of ZTR shares at C$185,000 (approximately £107,000).

The Issuer is a widely-held private company which controls the rights to the Uchi, Iron Butte, Dorado and Cordillera mineral exploration projects located in the Province of Ontario, the State of Nevada and the Republic of Chile, respectively. Following completion, it is anticipated that exploration and development of the Uchi and Dorado projects will be its primary focus. The following selected financial information is taken from the unaudited financial statements of Federal Gold Corp for the three-month period ended July 31, 2020:

Total Assets	C$232,720
Total Liabilities	C$127,277
Net Loss	C$5,150

Dorado Property (Chile)

The Dorado property is located in the Maricunga region of Chile, approximately 135 km east of Copiapo. The property, which covers an area of 1,600 hectares is reported to feature a significant but poorly defined gold-rich porphyry system which outcrops at surface. Additionally, the property is reported to be host to significant zones of hydrothermal alteration at surface which have not been explored or drilled.

Iron Butte Property (Nevada)

The Iron Butte Property is located 60 km south of Battle Mountain, Nevada. The property, which covers an area of approximately 200 hectares, features a well-defined bulk-tonnage epithermal gold and silver system which outcrops at surface. Federal Gold has an option to acquire the property by making a series of staged cash and share payments totalling US$1,572,750 over six years and arranging for the issuance of 187,500 common shares of the Company to the optionholder.

Uchi Property (Ontario)

The Uchi property is located approximately 80 km east of Red Lake, Ontario in the Birch-Uchi greenstone belt. The western portion of the property is adjacent to the past-producing South Bay Cu-Zn-Ag mine. The eastern portion of the property is adjacent to the past-producing Uchi Au mine. The property, which covers an area of 5,232 hectares represents a regional exploration opportunity in a greenstone belt with known zones of significant mineralization, but which remains relatively underexplored.

Cordillera (Chile)

The Cordillera property is located in the Maricunga region of Chile, approximately 100 km east of Copiapo. The property, which covers an area of approximately 1,680 hectares, is located 7 km south of the Maricunga Mine, formerly operated by Kinross, and 3 km north of the Caspiche Deposit, now being developed by the Norte Abierto Joint Venture between Barrick and Newmont. The Cordillera property is an early stage property prospective for porphyry gold and epithermal gold style mineralization which has not been adequately explored.

The investment was executed on the following terms:

Subscription for 250,000 ordinary shares at C$0.40c for a total consideration of C$100,000 (approximately £58,000) as part of a proposed capital raising of up to C$8,000,000.

As a result, conditional on completion of the fundraising and RTO, Gunsynd will hold 712,500 ordinary shares in Angold.  A further announcement will be made in due course.

Peter Ruse, a director of Gunsynd, commented: "We are pleased to announce this investment into Angold Resources, an investment and transaction that we hope will resurrect value from a holding that had been largely written off.  Angold represents an attractive entry into two core projects situated in the two very mining friendly jurisdictions of Chile and Nevada, USA."

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 / Mark Rogers	[phone]
Peterhouse Capital Limited Lucy Williams	[phone]

 

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