Gunsynd invests £0.2m in 1911 Gold Corporation
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16:55 20/12/24
Gunsynd announced an investment of CAD 0.35m (£0.2m) into 1911 Gold Corporation, a junior gold development and exploration company based in Manitoba, Canada, on Thursday.
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The AIM-traded firm said it made the investment from its existing cash resources, with a subscription for 5,833,333 shares at six Canadian cents each.
As part of the investment, for each ordinary share subscribed for in 1911 Gold, Gunsynd received a warrant for a new share with an exercise price of 10 Canadian cents.
The warrants would be exercisable for 24 months from the date of the offering's closing by 1911 Gold.
Gunsynd said the investment was part of 1911 Gold's CAD 3.9m private placing, which recently received a lead order from renowned precious metals investor Eric Sprott.
Following the investment, Gunsynd would hold a 4.3% interest in 1911 Gold.
The board described 1911 Gold as a junior explorer with significant land holdings of more than 63,000 hectares in the Rice Lake gold district within the West Uchi greenstone belt in Manitoba.
It also owns the True North mine and mill complex, which is fully permitted, with the True North mine boasting an existing resource estimate of one million ounces at 6.4 grams per tonne.
In addition to its flagship Rice Lake property, 1911 Gold owns the Apex project near Snow Lake, Manitoba, and the Denton-Keefer project near Timmins, Ontario.
The company's strategic focus is on organic growth and accretive acquisition opportunities in North America.
1911 Gold was planning to use the funds raised on exploration programmes at the Rice Lake property and to review and optimise the existing resource report, as well as for general corporate purposes.
For the year ended 31 December 2022, 1911 Gold reported revenue of CAD 5.88m and a loss of CAD 11.39m.
“It’s very exciting to have secured a position in a gold development and exploration opportunity such as 1911,” said Gunsynd director Peter Ruse.
“It’s not often you can invest into a company that owns a mill and mining complex, one million ounces at an attractive grade of 6.4 grams per tonne, and a vast portfolio of exploration tenure along strike in a first world mining jurisdiction all for a very modest market cap of CAD 5m.
“Gunsynd was very pleased to be investing alongside well renowned gold investor Eric Sprott who corner stoned the CAD 3.9m fundraise.”
Reporting by Josh White for Sharecast.com.