StockMarketWire.com - Mining company investor Gunsynd confirmed that Brazil Tungsten, of which it owned 6.18%, had informed it that its working capital position was currently 'very constrained'.
Brazil Tungsten notified Gunsynd that it would either undertake a heavily discounted rights issue or place itself into administration, which would be likely to reduce Gunsynd's interest in the company to nil.
Gynsynd said Brazil Tungsten current had a written down value on its balance sheet of £0.4m, representing about 17% of its net asset value for the year ended 31 July 2019.
'This is a legacy asset that has been written down over previous periods,' chairman Hamish Harris said.
'Gunsynd continues to concentrate on its core investments on which an update will be made in the near future.'
At 1:22pm: [LON:GUN] Gunsynd Plc Ord 0.01p share price was 0p at 0.01p
Story provided by StockMarketWire.com
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