Sunridge Gold Reports Increased Activity on the Asmara Project, Eritrea
VANCOUVER, British Columbia--(BUSINESS WIRE)--As reported on October 22, 2013, Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) recently closed a $5.75 million private placement financing and as a result has increased activity on the Asmara Project, Eritrea. All activities are focused on bringing the project into production in 2015.
“Completing the latest financing enables Sunridge to achieve all these value-added goals before the end of the year.”
“Sunridge continues to enhance the value of the Asmara Project by completing the social & environmental impact assessment study, making an application to the government for the mining license, completing negotiations with ENAMCO on their purchase of the 30% of the project, selecting an engineering company to start detailed engineering work as well as securing debt financing for the project,” stated Sunridge CEO and President Michael Hopley. “Completing the latest financing enables Sunridge to achieve all these value-added goals before the end of the year.”
The Company’s current activities are summarized as follows:
- An application for a mining license for the Asmara Project will be submitted once the Social and Environmental Impact Assessment is complete in November 2013;
- Negotiations continue with Eritrean National Mining Corporation (“ENAMCO”) to determine the price they will pay to purchase 30% of the project from the Company; the Company sees this as a very important step and is pleased with progress made in recent discussions;
- Discussions continue with potential debt financing lenders. Micon International Limited has been working to complete an independent “due diligence” review of the project for potential lenders which will be completed before year end;
- The “expression of interest” documents were received from eligible engineering groups. The successful candidates will prepare “requests for proposal” (RFP) on engineering, procurement and construction management (EPCM) for Q1 2014;
- An operations manager has recently been hired to start work on the Asmara Project. Mr. Chris Attwood was Mine Manager at the Bisha Mine for over 2 years. Mr. Attwood will be an integral part of the Sunridge team moving forward with project development;
- The Company continues discussions with a number of interested parties that could lead to a potential acquisition of the Company or some or all of the Asmara Project. There can be no assurance that any transaction will occur, or as to the timing, structure or terms of any transaction.
The Asmara Project feasibility study (the “Study”) was completed last May and demonstrated that the mining of four of the six deposits that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) and processing of the ore at a central location near the large Emba Derho deposit is economically robust with a net present value (“NPV”) of $692 million (using a 10% discount rate) and with an internal rate of return (“IRR”) of 34%. The Study outlines a three-phase start-up mining operation which would initiate production in 2015 starting with high-grade copper and gold direct shipping ore production from the Debarwa deposit and heap-leaching of near surface gold, followed by supergene copper production, then zinc and copper at a full production rate of 4 million tonnes per year.
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea. Sunridge currently has approximately 210 million shares outstanding and trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com or call Greg Davis at the number listed below.
SUNRIDGE GOLD CORP.
|“Michael Hopley”||For further information contact:|
|Michael Hopley, President and Chief Executive Officer||Greg Davis, VP Business Development|
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate,” “estimate,” “suggest,” “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Forward looking statements may include the timing and success of any application for a mining license or of debt financing, completion of negotiations with ENAMCO, and the likelihood of receiving acquisition proposals. Risk and uncertain factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, a mining license, or debt financing, uncertainties in negotiating commercial arrangements with government entities; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.