Gunsynd plc
("Gunsynd" or the "Company")
Brazil Tungsten Holdings - Suspension of Operations
Gunsynd Plc (AIM: GUN, NEX: GUN) regrets to announce that it has been informed by the management of Brazil Tungsten Holdings ("BTHL"), in which it has a 6.18% investment, that there has been a fatal accident at its Bodo Mine in Brazil in which two underground workers were killed. Following the accident, BTHL has received a list of non-compliance issues, including three interdictions, which have resulted in the suspension of operations at the mine and process plant. Investigations by various government bodies are ongoing.
BTHL must now present plans on how it will rectify certain issues raised by the government bodies, and upon resolution, the restrictions may be lifted subject to approval. It is not yet known how long it will take to rectify and complete these remedial measures, but work has already started in conjunction with an independent consultant to address a number of the more straightforward infringements.
If the government bodies do not remove the restrictions after BTHL has taken corrective action, BTHL will need to seek recourse through the courts in order to have them lifted.
The 6.18% investment in BTHL currently has a carrying value of £500k in the accounts of the Company.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The directors of Gunsynd accept responsibility for this announcement.
For further information please contact:
Gunsynd plc Hamish Harris |
+44 20 7440 0640 |
Cairn Financial Advisers LLP James Caithie / Liam Murray |
+44 20 7213 0880 |
Peterhouse Corporate Finance Lucy Williams |
+44 20 7469 0930 |
