Update on Brazil Tungsten

RNS Number : 3755C

Gunsynd PLC

07 February 2020

 

Gunsynd plc

 ("Gunsynd" or the "Company")

Brazil Tungsten Holdings Update

Gunsynd Plc (AIM: GUN, NEX: GUN) announces that it has been notified by Brazil Tungsten Holdings Limited ("BTHL"), a company in which Gunsynd has a 6.18% shareholding, that it currently has very constrained working capital and in order to continue its operations in Brazil, will need to either undertake a deep discounted rights issue, which would result in a very significant dilution of Gunsynd's shareholding if Gunsynd elected not to participate, or place itself into administration, which would be likely to reduce Gunsynd's interest in BTHL to nil.  A further announcement will be made in due course.

BTHL has a current written down value on Gunsynd's balance sheet of £400,000 and this represents approximately 17% of Gunsynd's net asset value as stated in its balance sheet for the year ended 31 July 2019 announced on 10 December 2019.

Hamish Harris, Chairman commented "This is a legacy asset that has been written down over previous periods.  Gunsynd continues to concentrate on its core investments on which an update will be made in the near future"

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

The Directors of Gunsynd accept responsibility for this announcement.

For further information please contact:

Gunsynd plc Hamish Harris	[phone]
Cairn Financial Advisers LLP James Caithie / Liam Murray	[phone]
Peterhouse Corporate Finance Lucy Williams	[phone]

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 or any third party'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.

 

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