GUN Gunsynd Plc

Gunsynd plc

("Gunsynd" or the "Company")

Investee Company Update - Aberdeen Minerals Ltd  

Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce a corporate update from its investee company Aberdeen Minerals Limited ("Aberdeen"), a UK based Nickel-Copper exploration company, that the company has completed a conditional equity financing round supported by a new strategic shareholder.

Aberdeen announced an equity financing of up to £5.5 million to invest in its mineral exploration programmes for deposits of nickel, copper and cobalt in North East Scotland. Responsibly sourced and secure supplies of these metallic raw materials used in batteries and electrification are critical to a just energy transition in Scotland and the UK.

The financing comprises:

·    A conditional cornerstone investment by Central Asia Metals plc ("CAML") of £3 million at 8.5 pence per share to acquire a 28.7% shareholding in Aberdeen ("Initial Investment");

·    Warrants to be granted to CAML to invest an additional £2 million at 11 pence per share, which, if exercised, would take CAML ownership to 37.8%;

·    An Entitlement Offer to existing shareholders to raise up to an additional £0.5 million at 8.5 pence per share.

In addition, as part of CAML's investment, and whilst CAML's shareholding remains above 10% of Aberdeen's issued share capital, CAML will have the right to nominate a director to the board of Aberdeen. Louise Wrathall, CAML's Executive Director of Corporate Development, will join the Aberdeen board upon completion of the Initial Investment.

CAML is a UK mining company trading on the AIM market of the London Stock Exchange with a market value of over £300 million. It owns and operates the Kounrad SX-EW copper operation in central Kazakhstan and the Sasa zinc-lead mine in North Macedonia.

CAML's overall investment will fund:

·    Approximately 10,000 metres of drilling in two phases at Arthrath, aimed at determining the continuity of the high-grade mineralised intersections already identified at depth;

·    Should this drilling be successful, the preparation of a Mineral Resource Estimate ('MRE') and scoping level financial studies would be undertaken;

·    The continuation of Aberdeen's grant-supported metallurgical testwork in association with the UK Automotive Transformation Fund, a funding programme created to support the large-scale development of a high-value end-to-end electrified automotive supply chain in the UK; and

·    Soil geochemistry, ground geophysics and some exploratory drilling of district scale targets and ongoing generative work across the prospective Northeast Scotland region.  

Completion of CAML's investment is subject to customary closing conditions, as well as:

·    The approval of certain resolutions at a general meeting of Aberdeen's shareholders;

·    The granting of clearance regarding the UK National Security and Investment Act 2021; and

·    The granting of merger clearance in respect of notification requirements under the Republic of North Macedonia's Law on the Protection of Competition.

Gunsynd holds 2,000,000 ordinary shares which were purchased at a price of 7.5 pence per share for a total consideration of £150,000.

About Aberdeen Minerals Limited:

Aberdeen Minerals is a privately owned UK company focused on the exploration and development of battery metal deposits in North East Scotland. Active since 2018, the company has partnered with landowners through exclusive land access and exploration agreements over geologically prospective areas of Aberdeenshire. Demand is growing for battery metals, including those targeted by the company in North East Scotland, which are strategically important for long term, responsibly sourced and secure supplies of the raw materials critical to a just energy transition in Scotland and the UK.

More information can be found on Aberdeen's website: www.aberdeenminerals.com

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.

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