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LONDON (Alliance News) - AIM-listed investment company Gunsynd PLC said Friday it has agreed to subscribe for shares in Oyster Oil & Gas Ltd.
Gunsynd said it has subscribed for 1.0 million shares in Toronto-listed Oyster, at a price of CAD0.20 each, for a total investment of approximately GBP125,000. Gunsynd will also receive warrants for an equivalent number of shares with a strike price of CAD0.27.
Gunsynd did not disclose what size shareholding it will take in Oyster, although it said Oyster was raising GBP250,000 in total with existing shareholders. According to the TSV Venture Exchange, Oyster currently has approximately 37.7 million total shares in issue.
Oyster Oil & Gas operates four exploration blocks in the Republic of Djibouti and is the sole interest holder in one block in the Republic of Madagascar, said Gunsynd.
"This initial investment into Oyster offers the company the opportunity to participate in a large, multi-billion barrel prospective resource at what we believe to be a compelling valuation and complements our portfolio of near term oil production companies," said Hamis Harris, executive chairman of Gunsynd.
Shares in Gunsynd were up 3.5% at 0.044 pence Friday morning.
By Adam Clark; adamclark@alliancenews.com
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