Gunsynd (AIM: GUN) 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.
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.”
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