Gunsynd (GUN) has entered into a legally binding agreement to acquire the Greylark uranium project in Nunavut, Canada from Pinwheel Resources Ltd and Eric Sondergaard for £50,000.

This will be satisfied by the issue of 37.5 million shares at 0.12p, 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. Pinwheel will be appointed as initial operator of the project.

Gunsynd has also agreed to grant Pinwheel a 1.5% net smelter royalty, comprising the gross proceeds of the sale of ores, concentrates, metals, minerals and mineral by-product that are produced or extracted at the project.

The transaction is a related party transaction pursuant to AIM Rule 13 as the vendors are substantial shareholders of the company.

Separately, Gunsynd has also issued 40 million new shares to the Gunsynd Employee Benefit Trust at a price of 0.085p, being par value, following a subscription by the trustee of the EBT, LGL Trustees Jersey, at an aggregate cost to the company of £34,000. 

Following admission, the EBT will hold 90 million shares, representing approximately 8.85% of the enlarged issued share capital of the company.

"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,” said Hamish Harris, chairman of Gunsynd. 

“The recent sale price of the Mountain Lake project by Iso Energy to Future Fuels 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."

 

View from Vox

 

This acquisition is a strategic move by Gunsynd, building on an already attractive portfolio of projects in Canada. And it’s good to see a company that’s willing to be transactional in what’s generally considered a flat market. Still, uranium prices look to be ticking up, following Donald Trump's election victory earlier this month, so it makes sense to do deals where they’re offered. It will be good to see how Gunsynd moves its portfolio forward from here.