Gunsynd (GUN)  has signed a term sheet with Critical Discoveries in which it has agreed to farm into certain licences in Manitoba, known as the Barb gold project.

Barb comprises 32 mining claims over more than 6,500 hectares and is situated in the Rice Lake greenstone belt which holds the 5.6 million ounce Rice Lake deposit at Bissett

It lies 150 kilometres northeast of the provincial capital, Winnipeg, and has road access into the core of the property. It’s also just 30 kilometres away from an operational gold mill owned by 1911 Gold Corporation.

Targets on the new ground are drill-ready, following a recent geophysics campaign. 

To secure the project Gunsynd will pay C$190,000 in cash to cover costs previously incurred by the Vendor in relation to acquisition and sunk costs on exploration activities.

There will also be a C$25,000 share issue at the 10 day volume-weighted average price and a further C$225,000 to be issued in equal instalments every three months over a 24 month period.

Subject to various project milestones being achieved, the company will also issue the vendor with staged payments of a further C$1 million in shares at a price per share equal to the 10-day VWAP ending one business day prior to the relevant milestone being completed.

Milestones include 5,000 metres of drilling across the 33 mining claims, filing a resource estimate, completing a preliminary economic assessment, and signing an off-take agreement. 

Gunsynd is an investing company pursuant to AIM Rule 8 and will not be involved in the exploration, development or production of any resources from the Barb gold project. For at least 24 months Critical Discoveries will be the operator. 

It is envisaged that the fee payable to the operator will be cost plus 10%. Accordingly, Gunsynd will grant a 2% net smelter royalty over the licenses. 

 

View from Vox

 

Gunsynd continues to look nimble and creative in its deal-making, and its focus on safe jurisdictions provides meaningful comfort that these projects will be taken forward. It’s a good time to be in gold, and especially in Mannitoba, which not many London juniors have access to. It will be interesting to watch the company’s progress there.