Gunsynd PLC on Monday said it entered into a farm-in agreement with Pinwheel Resources Ltd relating to Canadian uranium licences.
The London-based investor in companies or projects in the natural resource sector acquired a 100% legal and beneficial interest in the West Dismal uranium project in Nunavut, Canada from Pinwheel for a £35,000 consideration.
Gunsynd shares were up 32% to 0.20 pence each in London on Monday afternoon.
Gunsynd will pay £15,000 in cash and issue 13.3 million new shares at a price of 0.15 pence each for a total of £20,000 to cover the transaction.
The project will be held on trust for Gunsynd until transfer to a special purpose vehicle or termination of the agreement.
Gunsynd named Pinwheel as the initial operator and agreed to grant the company a 1.5% net smelter royalty payable over the West Dismal licence as well as the existing Falcon and Bear Twit projects as announced on July 11.
This will consist of the gross proceeds of the sale of ores, concentrates, metals, minerals and mineral by-product that are produced or extracted at the projects.
Chair Hamish Harris said: ‘We are pleased to announce the acquisition of additional licences close to our existing Falcon Lake Project in Canada. There has been a significant amount of activity in terms of licence acquisition in the area recently and Gunsynd is excited to have been able to acquire a number of claims in the area which we believe hold potential, particularly for uranium.’
Admission of the new shares is expected on or around August 23.
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