LONDON (Alliance News) - Gunsynd PLC said Tuesday that Metminco Ltd has pulled out of the transaction to acquire investee Sunshine Minerals Ltd.
"This is disappointing but we note that the nickel price has dropped a bit since the transaction was announced. We expect that discussions with other potentially interested parties will take place shortly," said Hamish Harris, Gunsynd's executive chairman.
Metminco agreed to buy the entire share capital of Sunshine Metals, which owns an 80% stake in each of the Jejevo nickel project and Tausere bauxite prospect, both located on the Solomon Islands.
Gunsynd owns a 20% stake in Sunshine Minerals.
Gunsynd said Metminco still regard the project as "attractive" but was "unable to complete due diligence to its satisfaction".
Sydney-listed Metminco also was listed on AIM until leaving the London exchange earlier this month.
Shares in Gunsynd were down 15% Tuesday at 0.028 pence each.
Gunsynd (GUN)