Gunsynd finalises farm-in deal with Pinwheel Resources

5th Aug 2024 10:51

(Sharecast News) - Gunsynd said on Monday that it has finalised a farm-in agreement with Pinwheel Resources, securing a 100% legal and beneficial interest in the Falcon Lake U-Cu-Co project and Bear-Twit VMS project in Canada.

The AIM-traded firm said total consideration for the transaction was £0.2m, which would be satisfied through the issue of 115,384,615 new shares at a price of 0.13p each, totalling £0.15m, and a cash payment of £50,000.

Half of the cash payment was due immediately on completion, with the remaining £25,000 deferred until either 10 business days after a qualifying fundraise of at least £0.2m or the first anniversary of the agreement.

As part of the agreement, Gunsynd said it had committed to funding a minimum of £0.1m per annum over the next two years for the agreed work programmes on the projects.

Additionally, Gunsynd said it had secured a right of first refusal on certain other uranium licences that Pinwheel Resources was currently in the process of securing.

Pinwheel would initially operate the projects, holding them in trust for Gunsynd until they were transferred to a special purpose vehicle or until the agreement was terminated.

The Falcon Lake and Bear-Twit projects are located in the Northwest Territories and Nunavut, Canada, and include mineral claims and permits that were outlined in Gunsynd's July announcement.

"We are pleased to announce the acquisition of the Falcon Lake U-Cu-Co Project and the Bear Twit VMS Project in Canada," said chairman Hamish Harris.

"These acquisitions align with our strategic objective of expanding our portfolio with high-potential exploration assets.

"We look forward to updating our shareholders on the progress and potential of these new investments."

At 0801 BST, shares in Gunsynd were up 3.56% at 0.17p.

Reporting by Josh White for Sharecast.com.