Gunsynd invests C$0.25m into Empress Royalty Corp

Francesca Morgan
RNS Newswire
11:11, 23rd October 2020

Gunsynd (AIM: GUN) FOLLOW announced that it has invested C$0.25 million (around £0.146 million) into precious metals royalty and streaming company Empress Royalty Corp ("Empress").

The investment, which was executed by a subscription for 1,000,000 ordinary shares at a price of $0.25 per share is part of a fully subscribed C$8m capital raising supported by institutional and high net worth investors from both North America and Australia.

The financing raised C$8m for Empress, a Canadian reporting issuer. The proceeds will fund three new investments; a gold and one silver royalty, a gold royalty and a silver streaming transaction, all of which are expected to be revenue generating within 12 months.

The investor focused on the natural resources sector said the move complements existing investments in the precious metals sector, adding new commodity exposure to silver.

Shares in Gunsynd have increased 24% in value since August 2020 to open 2.56% higher this morning at 1p following the announcement.

GUN price chart

Focused on the creation of financing solutions for mining firms, Empress has an existing portfolio of thirteen gold royalties. The group is now in the process of conducting due diligence for the acquisition of three near-term cash producing gold and silver investments.

Gunsynd noted that Empress has ‘a strong shareholder base and collection of strategic partnerships’; Endeavour Financial (19.9% shareholder) in London, Terra Capital (19.9% shareholder) in Australia and Accendo Banco, and affiliates (19.9% shareholder) in Mexico. 

The group said this will allow Empress to both access global investment opportunities and bring significant mining finance expertise, deal structuring and access to capital markets.  

Commenting on the financing round, Peter Ruse, a director of Gunsynd, said, "We believe Empress offers an attractive entry point into the gold and silver royalty/streaming space which continues to be an attractive area in North American and European capital markets.”

For more news and updates on Gunsynd: FOLLOW

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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