New Project Acquisition, Issue of Equity & RPT

Gunsynd Plc

("Gunsynd" or the "Company")

Acquisition of Additional Canadian project in Nunavut, Issue of Equity & Related Party Transaction

Gunsynd (AIM: GUN), an investing company, is pleased to announce that it has entered into a legally binding agreement to acquire the Greylark uranium project in Canada ("Greylark" or the "Project") (the "Transaction"). 

Terms

Gunsynd has acquired a 100% legal and beneficial interest in the Greylark uranium project in Nunavut Canada from Pinwheel Resources Ltd ("Pinwheel") and Eric Sondergaard (together the "Vendors") for consideration of £50,000 which will be satisfied by:

- Issue of 37,500,000 new ordinary shares at a price of 0.12 pence per share for a total consideration of £45,000; and

- £5,000 in cash.

The Vendors will hold the Project on trust for Gunsynd until transfer to a special purpose vehicle or termination of the Agreement. The Pinwheel will be appointed as initial operator of the Project.

Gunsynd has agreed to grant Pinwheel a 1.5% net smelter royalty ("NSR"), payable over the license/permits in the Project, comprising the gross proceeds of the sale of ores, concentrates, metals, minerals and mineral by-product that are produced or extracted at the Project.

Related Party Transaction

The Transaction is a related party transaction pursuant to AIM Rule 13 due to the Vendors being a substantial shareholder of the Company (as defined under the AIM Rules). The directors all of whom are independent of the Transaction, having consulted with the Company's nominated adviser, believe that the terms of the Transaction are fair and reasonable insofar as shareholders are concerned.

Employee Benefit Trust and Issue of Equity

Gunsynd has also issued 40,000,000 new ordinary shares (the "EBT Shares") to the Gunsynd Employee Benefit Trust ("EBT") at a price of 0.085p (being par value) per new ordinary share, following a subscription by the trustee of the EBT, LGL Trustees Jersey, at an aggregate cost to the Company of £34,000. Following admission of the EBT Shares, the EBT will hold 90,000,000 ordinary shares representing approximately 8.85% of the enlarged issued share capital of the Company following Admission (as defined below).

Admission

Application will be made to the London Stock Exchange for the admission of 77,500,000 new ordinary shares to trading on AIM ("Admission"). Admission is expected to occur on or around 26 November 2024. The new ordinary shares will rank pari passu with the existing ordinary shares.

Total Voting Rights

For the purposes of the Disclosure and Transparency Rules, following Admission, the Company's issued share capital will comprise 1,017,245,223 ordinary shares of 0.085p each. This figure may be used by shareholders as the denominator for calculations to determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

Hamish Harris, Chairman of Gunsynd, commented: 

"We are pleased to announce the acquisition of additional highly prospective licences in close proximity to our existing Falcon Lake and Merlin Projects in Canada. The recent sale price of the Mountain Lake project by Iso Energy to Future Fuels (as detailed further below) gives a substantial look through to the potential valuation for these licences well in excess of our purchase price and indicates substantial value accretion to shareholders in a very short period of time."

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. 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Project details

The Greylark Project covers 1,268 hectares of highly prospective uranium and copper exploration tenure in Nunavut, northern Canada. Greylark is situated south of the Merlin project, and less than 5km west of Mountain Lake (formerly owned by Iso Energy Ltd).

The price paid by Gunsynd is the equivalent of circa CAD$70 per hectare.

Iso Energy has recently (14 November 2024) announced the sale of its Mountain Lake property to Future Fuels (TSXV: FTUR) at just over CAD$700 per hectare. We encourage shareholders to take note of the recently announced transaction on the link provided below:

https://www.isoenergy.ca/news-media/isoenergy-announces-strategic-sale-of-its-mountain-lake-property-in-nunavut

This acquisition adds to an already significant land position for Gunsynd in the Hornby Basin-one of Canada's prominent Uranium basins.

Location map * West Dismal Project is now known as the Merlin Project