http://www.proactiveinvestors.com Proactiveinvestors RSS feed en Thu, 14 Dec 2017 07:56:46 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Sunridge Gold to delist May 13 ]]> http://www.proactiveinvestors.com/companies/news/125620/sunridge-gold-to-delist-may-13-125620.html Sunridge Gold Corp (CVE:SGC) shares and warrants will be delisted from the TSX Venture Exchange at the request of the company at the close of business on May 13, the company said after hours on Thursday.

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Thu, 05 May 2016 16:21:00 -0400 http://www.proactiveinvestors.com/companies/news/125620/sunridge-gold-to-delist-may-13-125620.html
<![CDATA[News - Sunridge Gold to return $88.7mln to shareholders from May 18 ]]> http://www.proactiveinvestors.com/companies/news/125460/sunridge-gold-to-return-887mln-to-shareholders-from-may-18-125460.html Sunridge Gold Corp (CVE:SGC) said on Monday it will distribute around $88.7mln to its shareholders starting on May 18.

The estimated total will comprise of two distributions, with the second payment expected on November 4.

Sunridge will apply to the TSX Venture Exchange to have both its shares and share purchase warrants delisted from trading effective at the close of trading on May 13, to allow the trades to settle in advance of the record date.

As part of the company's reorganisation for the next six months until dissolution Craig Angus, Neil O'Brien and Steve Gatley will resign from the board of directors of Sunridge on the delisting date to leave four directors on the board.

In addition, with effect on April 30, employment was terminated for Scott Ansell (vice-president of project development), David Daoud (VP, exploration and geology) and Greg Davis (VP, business development).

As announced on April 26, the company was paid a total of $68.6mln net of taxes paid to the government of Eritrea on closing the sale of Sunridge's 60% interest in the Asmara Mining Share Company (AMSC) to Sichuan Road & Bridge Mining Investment Development Corp. Ltd. (SRBM). The second and final instalment of $7.33mln from SRBM, which is secured by a bank guarantee, is required to be paid to Sunridge by Oct. 26.

On Jan. 22, the shareholders of Sunridge approved the distribution of the net proceeds of the sale of AMSC as a return on capital to the shareholders in two tranches and after having satisfied all the liabilities of the company to be followed by the voluntary dissolution of Sunridge.

The board of directors is withholding certain funds from the first distribution to meet the obligations of the company and its continued operation for the next six months until dissolution and have determined that, assuming a U.S.-dollar/Canadian-dollar exchange rate of 1.25 on the date the funds are converted to Canadian dollars prior to the distribution that the estimated first distribution will total $77.5mln or 35 cents per share.

It has been assumed in this calculation that all stock options and share purchase warrants that have an exercise price of under 35 cents per share will have been exercised before the record date. This first distribution will therefore be adjusted by the actual proceeds from exercise of outstanding stock options and share purchase warrants, and the actual amount of the previously announced two-cent payment made to warrant holders of record on the record date for the cancellation of listed share purchase warrants that have not been exercised before the record date.

As it is not yet known what the bank buy rate of US dollars will be on the payment date of the first distribution or how many stock options and/or share purchase warrants will be exercised before the record date, it is not possible to state with certainty the exact amount of the first distribution. The company will announce the actual adjusted amount on May 16.

This first distribution will be paid to shareholders of record on the record date by the company's transfer agent approximately three business days from the record date. On that same day, the company's transfer agent will pay the warrantholders of record on the record date a cancellation fee of two cents.

The second distribution is expected to be paid to the same shareholders of record on the record date on or about Nov. 4, 2016. The amount to be distributed will include the final principal and interest of the deferred payment, combined with any remaining cash after all remaining obligations of the company have been settled and is currently expected to be a further four to five cents a share.

The company will then voluntarily dissolve after the second distribution has been paid and all obligations of the company have been settled.

Sunridge Gold shares were up 2.9% at C$0.36 on Monday.

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Mon, 02 May 2016 15:44:00 -0400 http://www.proactiveinvestors.com/companies/news/125460/sunridge-gold-to-return-887mln-to-shareholders-from-may-18-125460.html
<![CDATA[News - Sunridge Gold closes sale of Asmara interest ]]> http://www.proactiveinvestors.com/companies/news/125264/sunridge-gold-closes-sale-of-asmara-interest-125264.html Sunridge Gold Corp (CVE:SGC) and Sichuan Road & Bridge Mining Investment Development Corp (SRBM) completed the purchase and sale of Sunridge's 60% interest in the Asmara Mining Share Company (AMSC) on Tuesday.

Sunridge confirmed payments aggregating $68.6mln have been received or are in transit.

Sunridge detailed that $65mln by SRBM for the purchase price of the shares of AMSC, net of $3.3mln income tax withheld for the capital gain to the company and paid to the government of Eritrea.

Sunridge also said $6mln by SRBM as the first instalment of the remaining principal of the deferred payment of $13.33mln owed to the company by

Eritrean National Mining Corp. (ENAMCO).

The company also said that there was $950,982 of interest accrued on the deferred payment to closing by ENAMCO, net of $98,427 income tax withheld for the interest earned by the company and paid to the government of Eritrea.

The second and final instalment of the principal of $7.33mln of the deferred payment is secured by a bank guarantee and will be paid to Sunridge by October 26. ENAMCO will concurrently pay Sunridge interest on the second and final instalment of the deferred payment.

"This transaction marks the end of a very successful 11-year run for the Sunridge team in Eritrea," said Michael Hopley, president and chief executive officer.

"We have advanced the Asmara project from early-stage exploration, through a gamut of engineering and environmental studies, culminating in the issuance of a mining licence to AMSC to develop the Asmara project. During our time in Eritrea, the team forged a close working relationship with ENAMCO and made many friends in the country. We thank the Ministry of Energy and Mines as well as ENAMCO for their support over the years, and we certainly wish SRBM every success in the future with the Asmara project."

On January 22 the shareholders of Sunridge approved the distribution of the net proceeds of the sale of AMSC as a return on capital to the shareholders in two tranches after satisfying all the liabilities of the company followed by the dissolution of Sunridge.

The board will meet on April 29 to set the record date for the distribution, expected to be 14 calendar days from the meeting date, and to make application to the TSX Venture Exchange to have the company's shares delisted from trading not less than three days after the record date.

Sunridge intends to announce the record date and the timing of and the amount of net cash available to be distributed to shareholders on April 29. The first distribution will be made three business days after the record date.

The second distribution will be paid approximately six months later, after receipt of the final instalment of the deferred payment and all remaining obligations of the company have been settled. The company will then voluntarily dissolve.

The 60,774,558 share purchase warrants that are listed for trading on the exchange are subject to a warrant indenture. Any warrants that have not been exercised on or before the delisting date will be automatically cancelled, in consideration for the payment to the holders of such warrants of two cents per warrant. This payment will be paid to the warrantholders at the same time as the first distribution.

Sunridge shares were 1.49% higher at C$0.34.

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Tue, 26 Apr 2016 12:25:00 -0400 http://www.proactiveinvestors.com/companies/news/125264/sunridge-gold-closes-sale-of-asmara-interest-125264.html
<![CDATA[News - Sunridge Gold expects to close Asmara sale April 26 ]]> http://www.proactiveinvestors.com/companies/news/125204/sunridge-gold-expects-to-close-asmara-sale-april-26-125204.html Sunridge Gold Corp (CVE:SGC) said on Monday that completion of its sale of its  60% interest in the Asmara Mining Share Company to Sichuan Road & Bridge Mining Investment Development Corp. will take place on April 26, not April 25 as previously reported.

Sunridge shares were up 1.5% at C$0.34.

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Mon, 25 Apr 2016 14:47:00 -0400 http://www.proactiveinvestors.com/companies/news/125204/sunridge-gold-expects-to-close-asmara-sale-april-26-125204.html
<![CDATA[News - Sunridge Gold Corp awarded costs after winning court battle ]]> http://www.proactiveinvestors.com/companies/news/124867/sunridge-gold-corp-awarded-costs-after-winning-court-battle-124867.html Sunridge Gold Corp (CVE:SCG) has received a favourable decision in its appeal heard by the Federal Court of Canada.

The company has successfully appealed a required US$2.2mln standby letter of credit payable to Delizia Limited, which has now been cancelled.

Sunridge had arranged a credit facility with another party while it appealed the initial decision.

The Sunridge appeal was heard by the court on Nov. 25 and 26, 2015, and the judgement was delivered to the parties on April 8, 2016.

The court allowed Sunridge's appeal and has awarded costs to the company.

Earlier this week Sunridge revealed it had agreed to a week's delay in the disposal of its 60% stake in the Asmara Mining Share Company.

The Sichuan Road & Bridge Mining Investment Development Corp (SRBM), which is buying the stake, has agreed with Sunridge that the sale will now complete on April 25.

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Fri, 15 Apr 2016 11:00:00 -0400 http://www.proactiveinvestors.com/companies/news/124867/sunridge-gold-corp-awarded-costs-after-winning-court-battle-124867.html
<![CDATA[News - Sunridge Gold's disposal of Asmara stake pushed back a week ]]> http://www.proactiveinvestors.com/companies/news/124772/sunridge-gold-s-disposal-of-asmara-stake-pushed-back-a-week-124772.html Sunridge Gold Corp (CVE:SGC) has agreed to a week's delay in the disposal of its 60% stake in the Asmara Mining Share Company.

The Sichuan Road & Bridge Mining Investment Development Corp (SRBM), which is buying the stake, has agreed with Sunridge that the sale will now complete on April 25.

SRBM has received final approval from the Ministry of Commerce and National Development and Reform Commission in China and expects the final necessary regulatory approval from the State Administration of Foreign Exchange within a few days.

SRBM is purchasing Sunridge's Asmara stake for $65mln cash. In addition, SRBM has assumed the obligation to pay Sunridge the remaining principal of the deferred payment of $13.33mln owed to the company by Eritrean National Mining Corp. The deferred payment will be paid in two instalments with the first instalment of $6mln paid on closing the deal and the second and final instalment of $7.33mln paid six months later.

On January 22, the shareholders of Sunridge approved the distribution of the net proceeds of the sale of AMSC as a return on capital to the shareholders in two tranches after satisfying all the liabilities of the company followed by the dissolution of Sunridge.

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Wed, 13 Apr 2016 11:25:00 -0400 http://www.proactiveinvestors.com/companies/news/124772/sunridge-gold-s-disposal-of-asmara-stake-pushed-back-a-week-124772.html
<![CDATA[News - Sunridge expects closing of 60% Asmara sale by April 18 ]]> http://www.proactiveinvestors.com/companies/news/123991/sunridge-expects-closing-of-60-asmara-sale-by-april-18-123991.html Sunridge Gold (CVE:SGC) shares rose on Tuesday after the company said that Sichuan Road & Bridge Mining Investment Development Corp expects to receive the final Chinese regulatory approvals for SRBM's purchase of Sunridge's 60% stake in Asmara Mining Share Company on April 18.

These final approvals include, but are not limited to, National Development and Reform Commission, the Ministry of Commerce, and the State Administration of Foreign Exchange. In turn, AMSC has notified the Ministry of Energy and Mines of the government of Eritrea seeking its approval of the deal.

SRBM is purchasing Sunridge's Asmara stake for $65mln cash. In addition, SRBM has assumed the obligation to pay Sunridge the remaining principal of the deferred payment of $13.33mln owed to the company by Eritrean National Mining Corp. The deferred payment will be paid in two instalments with the first instalment of $6mln paid on closing the deal and the second and final instalment of $7.33mln paid six months later.

On January 22, the shareholders of Sunridge approved the distribution of the net proceeds of the sale of AMSC as a return on capital to the shareholders in two tranches after satisfying all the liabilities of the company followed by the dissolution of Sunridge.

Proactive Investors reported on February 23 that Sichuan province regulators had approved the deal.

Sunridge shares were up 1.7% at C$0.30.

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Tue, 22 Mar 2016 15:04:00 -0400 http://www.proactiveinvestors.com/companies/news/123991/sunridge-expects-closing-of-60-asmara-sale-by-april-18-123991.html
<![CDATA[News - Sunridge says Asmara buyer SRBM gets Chinese regulatory approval ]]> http://www.proactiveinvestors.com/companies/news/122890/sunridge-says-asmara-buyer-srbm-gets-chinese-regulatory-approval-122890.html Shares of Sunridge Gold (CVE:SGC) rose on Tuesday after a Chinese regulator approved Sichuan Road & Bridge Mining Investment Development Corp's (SRBM) plans to buy the Canadian miner's 60% stake in Asmara Mining Share Company for $65mln cash.

Sichuan has the blessing of the Sichuan provincial government and the Sichuan State-Owned Asset Supervision and Administration Commission of the State Council for the deal. Asmara is the holder of the Asmara project in Eritrea.

Meanwhile, Sunridge has received final approval from the TSX Venture Exchange to sell its 60-per-cent interest in the Asmara project. This follows Sunridge shareholder approval received at the EGM meeting on Jan. 22.

But regulatory clearance is not exhausted, Sunridge said in a statement on Tuesday. The remaining conditions to closing the deal include receipt of the remaining final regulatory approvals within China, including but not limited National Development and Reform Commission, the Ministry of Commerce and the State Administration of Foreign Exchange, as well as receipt from the Ministry of Energy and Mines of the government of Eritrea of notice of its approval of the transaction.

Sunridge shares were up 1.8% at C$0.28.

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Tue, 23 Feb 2016 15:11:00 -0500 http://www.proactiveinvestors.com/companies/news/122890/sunridge-says-asmara-buyer-srbm-gets-chinese-regulatory-approval-122890.html
<![CDATA[News - Sunridge Gold is an arbitrage play, newsletter suggests ]]> http://www.proactiveinvestors.com/companies/news/120242/sunridge-gold-is-an-arbitrage-play-newsletter-suggests-120242.html Sunridge Gold (CVE:SGC), which is soon to wind itself up, has been tipped as a ‘buy’ in the November edition of the Gold Newsletter.

The newsletter’s stock-picker, Brien Lundin, said a Chinese conglomerate has agreed to acquire a 60% interest in the Asmara Mining Share Company in Eritrea that is worth about 33 cents per fully diluted Sunridge share.

Lundin notes this would suggest an arbitrage play is possible, given that Sunridge trades at around 27 cents currently.

Lundin’s advice is to grab the shares for a quick in-and-out profit.

Sunridge shareholders have yet to vote on the proposed dissolution of the company, but Sunridge’s directors are recommending they do so.

If shareholders vote in favor of the dissolution, the plan is to return cash in two tranches after all of the company's liabilities have been settled.

The amount of net cash available to be distributed to shareholders is subject to a number of risks and uncertainties, the company cautioned, but management currently expects that the aggregate amount of the distributions to shareholders will be not less than C$0.35 per share.

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Wed, 09 Dec 2015 07:08:00 -0500 http://www.proactiveinvestors.com/companies/news/120242/sunridge-gold-is-an-arbitrage-play-newsletter-suggests-120242.html
<![CDATA[News - Sunridge Gold to call it a day and return cash ]]> http://www.proactiveinvestors.com/companies/news/119700/sunridge-gold-to-call-it-a-day-and-return-cash-119700.html Sunridge Gold (CVE:SGC) is proposing to wind up the company and return surplus cash to shareholders.

In view of the difficult environment for junior mineral exploration companies, the company took soundings on whether it should wind up the company or buy a new mineral property; the overwhelming response from its shareholders and advisers was to wind up the company.

If shareholders vote in favor of the dissolution, the plan is to return cash in two tranches after all of the company's liabilities have been settled.

The amount of net cash available to be distributed to shareholders is subject to a number of risks and uncertainties, the company cautioned, but management currently expects that the aggregate amount of the distributions to shareholders will be not less than C$0.35 per share. the shares closed at 24.5 cents on Tuesday.

After the settlement of the company's obligations, all of the directors except one will resign and the company will go on care and maintenance for around six months until the receipt of the final deferred payment owed the company from the sale of a 30% interest in the Asmara Share Mining Company (ASMC), which owns the rights to the Asmara project in Eritrea.

Sunridge still owns 60% of Asmara, and plans to sell this stake but it cautioned shareholders there is no guarantee this will be possible.

The announcement of the plans to jack it all in came alongside results for the first nine months of 2015 that showed a net loss of C$1.96mln, versus a net loss of C$3.76mln in the nine months to August 2014. The company recently changed its year-end, hence the discrepancy in the end-dates of the reporting periods.

In the third quarter the company's loss narrowed to C$560,763 from a loss of C$1.05mln the year before.

The company currently has no revenues.

It began the third quarter with cash of C$3.95mln and ended it with C$1.26mln.


 

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Wed, 25 Nov 2015 07:50:00 -0500 http://www.proactiveinvestors.com/companies/news/119700/sunridge-gold-to-call-it-a-day-and-return-cash-119700.html
<![CDATA[News - Sunridge Gold agrees US$65mln sale of Eritrea gold mine ]]> http://www.proactiveinvestors.com/companies/news/117194/sunridge-gold-agrees-us65mln-sale-of-eritrea-gold-mine-117194.html Sunridge Gold (CVE:SGC) shot up around 50% after it struck a US$65mln (C$85mln) cash deal to sell its majority stake in Asmara Mining, the joint venture company that owns the Asmara mine, in Eritrea.

Michael Hopley, Sunridge chief executive, highlighted that the proposed deal is at a premium valuation.

He added: “(it) equates to a significant premium to the present market value of Sunridge and under the continuing challenging market conditions for junior resource companies we believe that this is an attractive cash offer.”

The buyer, a Chinese group called Sichuan Road & Bridge Mining Investment Development Corp (SRBM), has also agreed to take on the responsibility for paying a deferred US$13.3mln payment to Sunridge on behalf of state-owned partner ENAMCO.

On closing of the transaction SRBM will pay out US$71mln to Sunridge, accounting for the US$65mln purchase plus the first US6mln owed by ENAMCO. A further US$7.3mln would then follow six months later.

ENAMCO remains responsible for the interest on the US$7.33mln during that period.

The Toronto listed company told investors it would return cash proceeds to shareholders.

Sunridge shares were changing hands this afternoon at 25 Canadian cents each, up 47%, and at that price the group is valued at C$52.5mln.

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Fri, 06 Nov 2015 09:18:00 -0500 http://www.proactiveinvestors.com/companies/news/117194/sunridge-gold-agrees-us65mln-sale-of-eritrea-gold-mine-117194.html
<![CDATA[News - Sunridge Gold plans commercial production at Debarwa by end 2016 ]]> http://www.proactiveinvestors.com/companies/news/117121/sunridge-gold-plans-commercial-production-at-debarwa-by-end-2016-117121.html “We’ve been involved in Eritrea since 2003,” says Sunridge Gold’s (CVE:SGC) Greg Davis.

Indeed it was back in August of that year that the company first took an option on the Asmara and Debarwa copper-gold projects not far away from the Eritrean capital Asmara itself, right in the centre of the country.

But this was no shot in the dark taken by a company casting around for opportunity in the boom that was then gathering.

Rather, it was a calculated move by a group of people who were getting to know Eritrea pretty well via what was to eventually be the country’s great mining success story: Nevsun (TSX:NSU).

“Sunridge was at first sort of an unofficial sister company of Nevsun,” says Davis.

“We looked at Debarwa. The board at Nevsun took a pass at it, and two board members had a shell company which acquired it and that’s how Sunridge was born.”

Nevsun, on the whole, had bigger fish to fry. The company’s Bisha mine produced 32.4mln pounds of copper in concentrate in the third quarter of this year and generated US$58mln in cash.

It just shows what can be done, and Sunridge is now aiming to be the next cab off the rank.

In the time that’s elapsed between that first foray in 2003 and now, much work has been done.

“We’ve had a tremendous amount of success,” says Davis.

“We’ve drilled 400,000 metres. We’ve completed a full bankable feasibility study, and we did a full environmental impact assessment in 2013. Since that time it’s been all about the permitting.”

In some respect that’s been a slow process, but with the government on board as a participating equity partner, the ultimate outcome was never really in doubt.

That certainty has allowed the Sunridge team, led by chief executive Michael Hopley, to line up the necessary financing to get a mine at Debarwa up and running fairly quickly.

“On September 11th 2015 we officially signed a mining agreement with the mining ministry in Eritrea,” says Davis. “That led to the issuance of the mining licenses.”

So now, it’s all systems go.

With one proviso.

In light of the economic conditions around the world, Davis explains, it seemed prudent to start with a smaller operation and work up.

The plan is to build a mine in three phases, the first of which will be low cost and supported by high grade, which will then in turn support the initiation of the larger second and third phase.

“Debarwa offers a start-up for only US$32mln,” says Davis. “It grades 16% copper. We can mine it, crush it and direct ship it.”

After years of hard work, it’s now become as simple as that.

Of course, even if Debarwa doesn’t command the billion dollar price tag that has made some projects prohibitive to finance in recent markets, that US$32mln is still real money and will need to be sourced from somewhere.

Davis has little doubt that Sunridge can do it though, and - perhaps more importantly - in a way that won’t be dilutive to shareholders.

Partly that’s because with C1 costs set to come in at between US$0.70 to US$0.80 per pound, the margins on offer are still huge, even allowing for today’s weaker copper price of around US$2.40 per pound.

But there’s more to it than that.

Around US$14mln or US$15mln of the required cash can be raised through equipment financing at the project level.

Add that to an existing US$10mln debt facility at the parent company level and the contribution due from Sunridge’s blue-chip partner, the Eritrean government, and the money looks all cued up and ready to go.

In fact, much of the recent legwork has gone into laying the groundwork for the follow-on fundraise (fundraising?) that will be required to get phases two and three into production.

The bigger sums of  + US$350mln that were talked about in the 2013 study will obviously be harder to pull together, especially considering that the copper price is much lower now than it was then.

But Davis and team is ready to meet that challenge too.

“There are ways to optimise for lower metals prices,” he says.

“The price of copper may be down, but we’ve also seen costs come down. We originally modelled diesel at US$1.10, but we could expect it to get to US$0.80 now.

More to the point, by then the company will have a mine that’s up and running.

“Once the initial financing is secured we’ll be staffing up and beginning the process of procurement,” says Davis.

“There’s no lead time, just shipping time. By the fourth quarter of next year we’ll have the DSO and we’ll begin commercial production.”

Sunridge also acknowledges that the M& A file is open, although the team is focussed on moving the project into production as quickly as possible.

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Thu, 05 Nov 2015 10:58:00 -0500 http://www.proactiveinvestors.com/companies/news/117121/sunridge-gold-plans-commercial-production-at-debarwa-by-end-2016-117121.html
<![CDATA[Media files - Sunridge Gold boss hails key approvals in Eritrea ]]> http://www.proactiveinvestors.com/companies/stocktube/4290/sunridge-gold-boss-hails-key-approvals-in-eritrea-4290.html Thu, 22 Oct 2015 07:59:00 -0400 http://www.proactiveinvestors.com/companies/stocktube/4290/sunridge-gold-boss-hails-key-approvals-in-eritrea-4290.html <![CDATA[News - Sunridge Gold lands mining licences for Asmara project ]]> http://www.proactiveinvestors.com/companies/news/116364/sunridge-gold-lands-mining-licences-for-asmara-project-116364.html --UPDATE, ADDS MORE DETAIL AND BACKGROUND--

Shares in Sunridge Gold Corp (CVE:SGC) advanced after it secured three key mining licences in Eritrea for the Asmara project.

The Toronto quoted mine developer climbed nearly 6% to trade at 18 Canadian cents each.

Asmara Mining (AMSC), a joint venture 60% owned by the Canadian group, has been awarded licences spanning 19.3 square kilometres and encompassing four advanced deposits - namely Emba Derho, Adi Nefas, Gupo Gold and Debarwa.

These areas were all incorporated into the feasibility study for Asmara, a proposed copper-zinc-gold mining operation.

Asmara is forecast to start commercial mining operations in the third quarter of 2016. It will initially produce a high-grade copper direct shipping ore (DSO) product from the Debarwa deposit.

"The acquisition of the mining licenses is another important step forward for AMSC and Sunridge and we are grateful for the continued support of the Government of Eritrea" said Michael Hopley, Sunridge chief executive.

"We now remain focused on our plans to finalize financing arrangements for Phase 1A - the mining and shipping the high-grade copper and gold direct shipping ore from Debarwa.”

The Asmara feasibility study was delivered back in May 2013.

It showed the project is capable of producing 29,000 tonnes of copper and 42,000 ounces of gold over the first eight years of its life, not to mention 184 million pounds of zinc and a million ounces of silver.

What’s more, certain parts of the Asmara ore were rich enough to constitute what’s known in the trade as direct shipping ore (DSO), meaning that there’s enough metal inside the rock for the company just to dig it up, ship it out and sell it, without any need for processing.

Sunridge estimated back in 2013 that it would take just US$30mln to get the DSO aspect of its operation up and running.

But of course, crucial was the permits. Not that these were in serious doubt, given that the Eritrean government is an equity partner in Asmara, but with the new mining permits now in, the company can press ahead its plans.

Sunridge was among the vanguard of mining companies that went into East Africa as the mining boom of the last decade was getting underway.

Most successful of that crop was Nevsun Resources (TSX:NSU) which managed to build and bring into production the Bisha copper-gold mine, also in Eritrea, without hitting any serious snags.

Bisha is slated to produce over 891 mln pounds of copper over a production life that should last through until 2025.

In September 2015, a mining agreement was signed between Asmara Mining and Eritrea’s Minister of Energy and Mines, General Sebhat Ephrem.

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Mon, 19 Oct 2015 08:12:00 -0400 http://www.proactiveinvestors.com/companies/news/116364/sunridge-gold-lands-mining-licences-for-asmara-project-116364.html
<![CDATA[News - Sunridge Gold advances after Asmara mining agreement is signed ]]> http://www.proactiveinvestors.com/companies/news/110743/sunridge-gold-advances-after-asmara-mining-agreement-is-signed-110743.html Sunridge Gold (CVE:SGC) told investors that its 60% owned joint venture Asmara Mining Share Company (AMSC) has signed a mining agreement with the Eritrean Ministry of Energy and Mines.

As a result Asmara will now be issued three mining licenses.

Those licences will cover four advanced areas - called Emba Derho, Adi Nefas, Gupo Gold and Debarwa - which together combine to make the Asmara copper-zinc-gold project.

AMSC will also receive exploration licences spanning 83 square kilometres, which include the Adi Rassi copper-gold deposit and the Kodadu gold deposit.

“We are very happy to have achieved this major milestone,” said Sunridge chief executive Michael Hopley.

It comes after several years of work, which included a feasibility study and SEIA. Hopley added that the licence awards are a validation of the work carried out by the company.

“These Mining Licenses will allow AMSC to move forward with all plans for the Asmara Project including the completion of the financing plans for Phase 1 – the mining and shipping the direct shipping ore (DSO) from Debarwa.”

The agreement gives AMSC the exclusive rights to conduct mining operations within the license areas for a 20 year term.

It will also allow AMSC to continue to secure debt financing to fund the development of Phase 1A.

At the moment several financing options are under consideration, Sunridge said.

Development work is now expected to start within six months, once the licence has been awarded, and commercial production must follow 36 months after that.

AMSC expects to start the extraction and transport of direct shipping ore (DSO) by the third quarter of next year (2016). The DSO zone, which is located in the Debarwa area, comprises 116,000 tonnes of high grade material; containing 39mln pounds of copper, 11,000 ounces of gold and 286,000 ounces of silver.

Sunridge added that there appears to be a significant interest from smelters and metal traders in lower grade DSO, which represents a significantly larger volume of additional ‘tonnage’.

In Toronto, Sunridge Gold shares advanced 6.45% to 16.5 cents at 2:15 p.m.

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Fri, 11 Sep 2015 20:22:00 -0400 http://www.proactiveinvestors.com/companies/news/110743/sunridge-gold-advances-after-asmara-mining-agreement-is-signed-110743.html
<![CDATA[News - Sunridge agrees to acquire Net Profits Interest on the Asmara Project, Eritrea ]]> http://www.proactiveinvestors.com/companies/news/109527/sunridge-agrees-to-acquire-net-profits-interest-on-the-asmara-project-eritrea-109527.html Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) has executed an agreement with the Estate of geologist Albert J Perry for a two-year option to purchase his 2% net profit interest (NPI) on Sunridge's portion of the Asmara Project, quantifying it and helping to advance its  development plans.

Perry visited the area in the 1990’s and was the first to recognize the potential of the Asmara Project, receiving a 2% NPI on the property by a previous operator. Sunridge has inherited sole responsibility for this interest as Perry died in 2013.

After paying the Perry Estate a non-refundable amount of US$75,000, Sunridge will have a one-year option to purchase the NPI interest for US$1.5 million.

Should Sunridge not exercise this option within the first year then Sunridge can choose to pay the Perry Estate US$125,000 for the option to purchase the NPI interest for a second year for US$2.5 million. 

The Asmara Project, held by the Asmara Mining Share Company (AMSC), a joint-venture company of which Sunridge owns 60% and the Eritrean National Mining Corporation ("ENAMCO") owns 40%. Sunridge would be the sole buyer for the Perry Estate NPI, which applies to the entire Asmara Project, paying for it using its share of cash flow from AMSC. 

The Asmara project is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. AMSC expects to start the first of three phases of production next year begins with high grade copper and gold, reaching full production by 2018.

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Thu, 30 Jul 2015 18:40:00 -0400 http://www.proactiveinvestors.com/companies/news/109527/sunridge-agrees-to-acquire-net-profits-interest-on-the-asmara-project-eritrea-109527.html
<![CDATA[News - Sunridge to obtain license for the Asmara Project as part of a comprehensive 20 year mining agreement ]]> http://www.proactiveinvestors.com/companies/news/115400/sunridge-to-obtain-license-for-the-asmara-project-as-part-of-a-comprehensive-20-year-mining-agreement-115400.html

Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) after starting field work in 2014, expects to acquire a mining license for the its joint venture Asmara copper/zinc/gold/silver project in Eritrea as part of a wider mining agreement, covering every aspect of the operations over a 20 year term. 

 

The Asmara Project, comprising six defined deposits - four of which are the subject of a feasibility study completed in May 2013 and are currently in the permitting process –is held by the Asmara Mining Share Company (AMSC), a joint-venture company of which Sunridge owns 60% and the Eritrean National Mining Corporation ("ENAMCO") owns 40%. 

 

Sunridge expects to secure the mining license shortly such that AMSC will be able to raise the capital to develop the mining and shipping of the high-grade copper direct shipping ore on the Debarwa deposit during Phase 1A of the project. 

 

In a statement, Sunridge said that AMSC is in the final stages of negotiating the details of the mining agreement with the Ministry of Energy and Mines (MEM), including the timing of the start of development and commercial production, design capacity and production amounts, reporting requirements, royalty calculations, the use of expatriate employees, contractors and sub-contractors, financing and fiscal arrangements, safety issues, community relations, as well as reclamation and closure plans.  

 

MEM advised AMSC that it has renewed all three exploration licenses that make up the Asmara Project until May 2016. Indeed, the Asmara project received favorable feedback from MEM, which mandated a review of the Feasibility Study and the Social and Environmental Impact Assessment (SEIA) last January.

 

Recent exploration efforts at the project have focused on the two "pipeline" deposits, known as the Kodadu volcanogenic-massive-sulphide (VMS) deposit and the Adi Rassi copper-gold deposit. Both areas have inferred resource estimates and remain open for expansion.

The project is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. AMSC expects to start the first of three phases of production next year begins with high grade copper and gold, reaching full production by 2018.  

 

The Debarwa direct shipping ore operation one of the four deposits that make up the Asmara project would have a pivotal role in the project's overall phased mining plan, which yielded a net present value of US$428 million post tax and an IRR of 27 percent using a 10 percent discount rate.

 

Once mining operations have commenced at the Debarwa deposit, extraction and shipping of the direct shipping ore is expected to start in the second quarter of 2016. Total cash costs for Phase 1A are anticipated to be in the range of 70 to 80 cents per pound of copper. 

 

Last spring, Sunridge recently had its buy rating reiterated by HRA Advisories in an update on the company's project in Eritrea based on the company’s considerable upside potential and the fact that it is just months or weeks away from a mining permit.

 

 

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Fri, 26 Jun 2015 10:52:00 -0400 http://www.proactiveinvestors.com/companies/news/115400/sunridge-to-obtain-license-for-the-asmara-project-as-part-of-a-comprehensive-20-year-mining-agreement-115400.html
<![CDATA[News - Sunridge Gold expects to start mining operations this year according to operational update ]]> http://www.proactiveinvestors.com/companies/news/106318/sunridge-gold-expects-to-start-mining-operations-this-year-according-to-operational-update-61000.html

Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) after starting field work in 2014 is advancing its joint venture Asmara project in Eritrea, expecting to acquire a mining license for the property, eyeing mining operations to start in the fourth quarter of this year.

Sunridge said that it would obtain the mining license within the first half of 2015 after receiving favorable feedback from the Ministry of Energy and Mines (MEM), which mandated a review of the Feasibility Study and the Social and Environmental Impact Assessment (SEIA) last January.

Current exploration work is concentrated on the two "pipeline" deposits, known as the Kodadu volcanogenic-massive-sulphide (VMS) deposit and the Adi Rassi copper-gold deposit. Both areas have inferred resource estimates and remain open for expansion.

Limited exploration to define new mineralization zones to guide future drilling has continued in both deposits even as the company has been focusing on the permitting and Feasibility Study to prepare for production.

"Although much of management's recent attention has been on the permitting process for the development of the Asmara Project, it is important to remember that significant exploration potential remains on the project" said Sunridge’s President and CEO, Michael Hopley.

At Kodadu, 14 east-west oriented channels were cut with a portable diamond saw totaling 318.48 meters across the VMS gold oxide zone structures to define future drill targets, which now comprise a total strike length of 1,350 meters. An Audio-Magneto-Telluric geophysical survey was also completed to define massive sulfide conductors, occurring beneath the oxide gold zone gossans, representing potential drill targets.

The exploration effort at Adi Rassi has been on increasing the extent of the defined mineralization by focusing on the South Hill, marked by surface copper mineralization, which has yet to be included in the current resource estimate. A trenching program totaling 367 meters has yielded rock samples to be used in defining future drill targets.

The Asmara Project, held by the Asmara Mining Share Company (AMSC), a joint-venture company of which Sunridge owns 60% and the Eritrean National Mining Corporation ("ENAMCO") owns 40%, should therefore remain on schedule for the Direct Shipping Ore first phase development.

The project is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. AMSC expects to start the first of three phases of production next year begins with high grade copper and gold, reaching full production by 2018.

The Debarwa direct shipping ore operation one of the four deposits that make up the Asmara project for which Sunridge completed a feasibility study in May 2013, would have a pivotal role in the project's overall phased mining plan, which yielded a net present value of US$428 million post tax and an IRR of 27 percent using a 10 percent discount rate.

Once mining operations have commenced at the Debarwa deposit, extraction and shipping of the direct shipping ore is expected to start in the second quarter of 2016. Total cash costs for Phase 1A are anticipated to be in the range of 70 to 80 cents per pound of copper.

Sunridge recently had its buy rating reiterated by HRA Advisories in an update on the company's project in Eritrea based on the company’s considerable upside potential and the fact that it is just months or weeks away from a mining permit.

 

 

 

 

 

 

 

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Wed, 15 Apr 2015 14:43:00 -0400 http://www.proactiveinvestors.com/companies/news/106318/sunridge-gold-expects-to-start-mining-operations-this-year-according-to-operational-update-61000.html
<![CDATA[News - Stock re-rating expected for Sunridge Gold as low-cost operations develop ]]> http://www.proactiveinvestors.com/companies/news/106208/stock-re-rating-expected-for-sunridge-gold-as-low-cost-operations-develop-60827.html The junior gold company will be focused this year on the first stage of its multi-staged production plan for its Asmara joint venture, namely the high grade supergene ‘direct shipping ore’ (DSO) copper material that can be shipped directly to the smelter, instgead of having to be upgraded in a concentrator before shipment.
HRA says that management has received interest from equipment suppliers for the DSO phase on the back of "extremely fast payback and a desirable DSO product", with Sunridge confident it can secure attractive vendor financing for mining equipment and a loan to cover initial working capital for the DSO operation, saving Sunridge from having to dilute its stock. 
The direct shipping ore operation would be at the Debarwa deposit, one of the four that make up the Asmara project for which Sunridge completed a feasibility study in May 2013. Debarwa would have a pivotal role in the project's overall phased mining plan, which yielded a net present value of US$428 million post tax and an IRR of 27 percent using a 10 percent discount rate.
"This phased approach is similar to the very successful Bisha mine in Eritrea operated by Nevsun (NSU-T)…Nevsun moved from being a gold producer to a copper mine and will transition again to being mainly a zinc mine in about a year," HRA said.
"Asmara shares this characteristic and Sunridge's management is using that to plan a mining operation that minimizes the capital outlay and maximizes early stage cash flow."
The Asmara project allows for a staged mining process that could generate cash flow of up to C$0.30/share very quickly after a permit approval, the report continued.
Indeed, the DSO operation allows for a processing method based on crushing and screening, avoiding the need for a mill, and keeping costs much lower than a conventional mining operation.
This characteristic holds the ‘wild card’ for the overall prospects of Asmara, which has high potential for a takeover offer. HRA said Sunridge continues to attract the interest of larger mining companies, particularly in Asia, which has invested heavily in East Africa.
Given Debarwa's low impurities, "the ore should generate a lot of buyer interest from smelters and attract a good price…At current metal prices Debarwa ore is worth over $1000/tonne."
HRA adds that as much as Sunridge managers would like to see their project through to conclusion, they would not "ignore a significant serious offer."
The company is weeks away from a mining permit, with such approvals having triggered large share price re-ratings in the past for other companies. HRA noted that engineers were "highly complementary" about the quality of Sunridge's work when assessing the mining plan.
The Asmara project is owned and operated by the Asmara Mining Share Company, which is held 60 percent by Sunridge and 40 percent by the Eritrean National Mining Corp (ENAMCO). ]]>
Thu, 02 Apr 2015 13:29:00 -0400 http://www.proactiveinvestors.com/companies/news/106208/stock-re-rating-expected-for-sunridge-gold-as-low-cost-operations-develop-60827.html
<![CDATA[News - Sunridge Gold: "a buy" if mining permit attained in Q2, says Eric Coffin ]]> http://www.proactiveinvestors.com/companies/news/105555/sunridge-gold-a-buy-if-mining-permit-attained-in-q2-says-eric-coffin-59943.html Sunridge Gold (CVE:SGC) had its buy rating reiterated by Eric Coffin of HRA Advisories after a long awaited update on the company's project in Eritrea and plans for 2015 last week.

The junior gold company said it will be focused this year on the first stage of its multi-staged production plan for its Asmara joint venture, namely the high grade supergene copper material that can be shipped directly to the smelter, known as the DSO operations.

Sunridge estimates this small deposit, also known as Debarwa, will cost $32 million to get into production, with the company responsible for two thirds of that budget. Eritrean partner ENAMCO must pay the first $6 million in spending under prior agreements. 

About $18 million of the planned budget would be for equipment that would be used for later phases of the Asmara mining plan as well, Coffin, editor of HRA Advisories, noted.

Currently, Sunridge is discussing its financing options with several heavy equipment suppliers for this part of the budget, while also looking at alternatives to finance the "small remaining balance" needed for phase 1A, Coffin said in his research update.

The company is expected to receive a mining permit for the project in the second quarter, which Coffin says has taken longer than expected --- "the norm everywhere these days".

He wrote: "Debarwa is quite small. Once pre-stripping is completed the actual mining would only take 4-5 months from start to finish. 

"Because of the high grade nature of the material it should generate enough cash flow in this period to pay off the equipment loan and leave tens of millions for the JV partners."

Indeed, the plan would be to use this money to help finance and provide part of the equity portion for the larger phase II and phase III operations.

Coffin said that if Sunridge can get through phase I without further dilution, while getting the best possible finance terms, it will have a "leg up in terms of earnings", and what Coffin assumes will be highly motivated equipment suppliers eager to finance the larger fleet required later on.

"The key to this will be nailing down both the financial terms and of course the mining license in short order.

"If Sunridge can get the next pieces in place the DSO operation itself should provide the potential for a double or more from the current level. Getting it underway may also speed up the companies that have been kicking tires at Asmara for a couple of years now. 

"It could instill a “now or never” mindset in some of the potential bidders that finally gets an offer on the table for the company. On the assumption Sunridge will in fact get a mining permit in Q2, the stock is a buy at these levels," Coffin concluded.

The Asmara project is owned and operated by the Asmara Mining Share Company, which is held 60 percent by Sunridge and 40 percent by the Eritrean National Mining Corp (ENAMCO).

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Wed, 18 Feb 2015 15:17:00 -0500 http://www.proactiveinvestors.com/companies/news/105555/sunridge-gold-a-buy-if-mining-permit-attained-in-q2-says-eric-coffin-59943.html
<![CDATA[News - Sunridge Gold and partner set US$32 mln budget for Asmara, Q4 target for first production phase ]]> http://www.proactiveinvestors.com/companies/news/105328/sunridge-gold-and-partner-set-us32-mln-budget-for-asmara-q4-target-for-first-production-phase-59635.html Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) said a US$32 million budget has been set for 2015 at its joint venture Asmara project in Eritrea, with plans to begin mining operations in the fourth quarter of this year. 

Goals have been set for Phase 1A of the mining operations, which is the open pit mining of near surface high grade copper and gold ore from the Debarwa deposit that will be crushed and shopped directly to a smelter.

The project, which has a three phase start-up plan beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

Equipment for the first phase of production is to be financed by equipment vendors. Sunridge said it is in discussions with a number of other potential financing sources to fund the remaining capital costs. 

The Asmara project is owned and operated by the Asmara Mining Share Company, which is held 60 percent by Sunridge and 40 percent by the Eritrean National Mining Corp (ENAMCO). Of the US$32 million budget allotted for this year, Sunridge must come up with two-thirds, with ENAMCO to fund the remainder.

The mining license for the property is expected to be issued in the second quarter of this year, after which financing is expected to be finalized. Sunridge is leaving the door open to a number of options, including debt from commercial and development banks, equipment financing, and funding from commodity offtake and royalty/streaming groups.

The Asmara joint venture is expected to hire some 250 new employees over the course of the year, with the majority to be taken on in October, after mobile equipment for the first phase has been ordered. 

Once mining operations have commenced at Debarwa, extraction and shipping of the direct shipping ore is expected to start in the second quarter of 2016. Total cash costs for Phase 1A are anticipated to be in the range of 70 to 80 cents per pound of copper.

Sunridge said that proceeds from the first phase of operations will cover all capital costs for the expansion of the project into Phase 1B --- the gold heap-leach operation of near surface gold ore, which is expected to cost about $50 million. The start of construction for the next phase is slated for mid to late 2016.

Asmara is made up of six defined deposits, four of which were the subject of a feasibility study completed in May 2013, which defined an after-tax net present value of $428 million and an IRR of 27 percent. The model is based on processing the ore at a central location near the large Emba Derho deposit, with an estimated mine life of 17 years.

Sunridge's management proved it could navigate development of its project through a tough market, taking its original feasibility study released in 2012 back to the drawing board to rejig the asset as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life.

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Tue, 03 Feb 2015 09:39:00 -0500 http://www.proactiveinvestors.com/companies/news/105328/sunridge-gold-and-partner-set-us32-mln-budget-for-asmara-q4-target-for-first-production-phase-59635.html
<![CDATA[News - Sunridge Gold preps Asmara project with early development, field work ]]> http://www.proactiveinvestors.com/companies/news/104014/sunridge-gold-preps-asmara-project-with-early-development-field-work-57895.html Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) says it has started field work on its advanced-stage joint venture Asmara project in Eritrea, and remains focused on acquiring a mining license for the property in the first quarter of next year, with sights set on near-term production.

Current exploration work is concentrated on the two "pipeline" deposits on the Asmara project, known as the Kodadu VMS deposit and the Adi Rassi copper-gold deposit. Both areas have inferred resource estimates and remain open for expansion.

The goal is to define new areas of mineralization and to direct additional expansion drilling planned for next year. 

The work is being funded by the Asmara Mining Share Corporation -- a joint venture which is held 60 percent by Sunridge and 40 percent by the Eritrean National Mining Company.

Sunridge formally announced the formation of the operating entity in early October, and in exchange for ENAMCO's 40 percent stake, the Eritrean company will pay the gold developer US$18.33 million in stages prior to production. ENAMCO will also provide US$6 million to the new operating company, plus one third of all expenses going forward.

The joint venture says it remains on track for first phase copper production next year. The project, which has a three phase start-up plan beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

Full production is expected by 2018.

Asmara is made up of six defined deposits, four of which were the subject of a feasibility study completed in May 2013, and are currently in the permitting process.

Sunridge's management has proved it can navigate development of its project through a tough market, taking its original feasibility study back to the drawing board to rejig the asset as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life.

Field work at the Kodadu and Adi Rassi deposits will consist of channel and trench sampling, detailed geological and structural mapping and geophysical work such as an AMT survey to define mineralization.

Sunridge said the joint venture will also engage in early development work in preparation for building a reservoir at the mine. The abstraction weir and reservoir will be built on the nearby Mai Bela River, which will provide water to the centralized processing facility near the large Emba Derho deposit at Asmara.

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Wed, 05 Nov 2014 09:45:00 -0500 http://www.proactiveinvestors.com/companies/news/104014/sunridge-gold-preps-asmara-project-with-early-development-field-work-57895.html
<![CDATA[News - Sunridge formally creates new operating entity governing Asmara project, first production slated for 2015 ]]> http://www.proactiveinvestors.com/companies/news/103600/sunridge-formally-creates-new-operating-entity-governing-asmara-project-first-production-slated-for-2015-57328.html In another step sure to derisk its flagship project even further, Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) has formally announced the formation of the joint venture company that will operate its Asmara copper-zinc-gold mine in Eritrea.

The operating entity, also known as the Asmara Mining Share Company, is held 60 percent by Sunridge and 40 percent by the Eritrean National Mining Corporation (ENAMCO), split between a 30 percent participating interest and a 10 percent stake that will be carried to production.

"We are very happy to have completed the formation of AMSC and formalized our partnership with ENAMCO on the Asmara project," said president and chief executive officer of Sunridge, Michael Hopley.

"This means that we can now rapidly push the project towards the start of Phase 1 production next year. 

"Also, the money that we have recently received from ENAMCO puts Sunridge in a strong cash situation particularly because of our current low expenditure rate on the project."

Indeed, in exchange for the 40 percent stake, ENAMCO has agreed to pay Sunridge US$18.33 million in stages prior to production. Of this, US$2 million was paid immediately on signing of the shareholders agreement back in June, and another US$1 million (plus interest) was paid out on September 30, with another US$2 million due before the end of November as per the scheduled outline.

The balance of US$13.33 million will be paid in installments on signing of a finance agreement that secures a significant portion of the funds required to develop the project, Sunridge said.

The Eritrean company will also provide US$6 million to the new operating company governing the project, plus one third of all expenses going forward. 

Sunridge is now awaiting its mining license for the Asmara project, which it is slated to receive in the first quarter of 2015, putting it on track for phase 1 production to start next year.

The company's management took the original feasibility study for Asmara released in May 2013 back to the drawing board to rejig the asset as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life. 

The idea is that mining revenue from one stage will help to fund successive stages. As a result, the economics show some fairly low capital costs to go into production. 

The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7 percent, making Asmara a much more attractive project. The new model yielded a net present value of US$692 million at the project, and an IRR of 34 percent, using a 10 percent discount rate. 

The project, which has a three phase start-up plan beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. Full production is expected by 2018.

The company said Thursday that the Asmara project, equipment and all Eritrean employees are now being transferred from Sunridge to the new operating joint venture, which has a five-member strong board of directors. Three of the directors are from Sunridge, while two hail from ENAMCO. 

Sunridge CEO Hopley has been appointed chairman of the Asmara Mining Share Company.

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Thu, 09 Oct 2014 09:57:00 -0400 http://www.proactiveinvestors.com/companies/news/103600/sunridge-formally-creates-new-operating-entity-governing-asmara-project-first-production-slated-for-2015-57328.html
<![CDATA[News - A "great time" to invest in Sunridge Gold, says gold maven Brien Lundin ]]> http://www.proactiveinvestors.com/companies/news/102891/a-great-time-to-invest-in-sunridge-gold-says-gold-maven-brien-lundin-56265.html Sunridge Gold (CVE:SGC) is seen as a likely candidate for a doubling in share price from current levels, according to precious metals expert Brien Lundin's Gold Newsletter.

"All in all, I see Sunridge as a very likely double from current levels as it is either bought out or goes into production over the next 18 months or so," he wrote in the August edition. 

"With much greater potential upside, it's an outstanding mix of lowered risk and near-term rewards and a buy."

The company, which is advancing its Asmara project in Eritrea to production, has combined four advanced deposits under one feasibility study with the goal of staging production, with mining revenue from one stage helping to fund successive stages. As a result, the economics show some "fairly low capital costs to go into production," Lundin said.

Indeed, Sunridge's management took the original feasibility study released in May 2013 back to the drawing board to rejig Asmara as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life. 

The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7 percent, making Asmara a much more attractive project. The new model yielded a net present value of US$692 million at the project, and an IRR of 34 percent, using a 10 percent discount rate. 

The company anticipates full production by 2018. The project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

The first phase is slated to begin late next year provided the mining license is issued when expected, and will have an initial capex cost of $46 million.

Lundin also highlighted key de-risking steps for the project that Sunridge has taken, including the shareholder's agreement with the Eritrean National Mining Corporation (ENAMCO), along with an initial $2 million payment to Sunridge as part of an $18.3 million consideration for ENAMCO's portion of the asset.

The Eritrean company will also provide US$6 million to the new operating company governing the project, plus one third of all expenses going forward. The project will be owned by the Asmara Mining Share Company, which will be held 60 percent by Sunridge and 40 percent by ENAMCO, split between a 30 percent participating interest and a 10 percent stake that will be carried to production.

"With these capital contributions and the feasibility study using phased development to fund ultimate capital costs, Sunridge should have a clear path to production next year without the need for any additional equity financings," wrote Lundin in his newsletter.

Though Lundin notes that the junior company has "a lot of stock out", he says the current share structure is "about right" for a company funded to production for a major project. Any additional necessary financing, he adds, would be for project expansion, and would likely compromise debt and/or offtake agreements. 

"On the classic path of a project from discovery to production, Sunridge is now at the lowest valuation level, pre-development and rising to production.

"Thus, this is a great time to invest," Lundin said, adding that it is very likely Sunridge will be bought out now that most of the risk involved has been eliminated and as the company rapidly moves towards production.

The gold analyst lists Chinese groups as potential takeover candidates, as well as Nevsun Resources (TSE:NSU), which has over $400 million in cash and owns the Bisha mine in Eritrea. 

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Tue, 19 Aug 2014 10:43:00 -0400 http://www.proactiveinvestors.com/companies/news/102891/a-great-time-to-invest-in-sunridge-gold-says-gold-maven-brien-lundin-56265.html
<![CDATA[News - Sunridge Gold says it's on track to start Asmara production next year ]]> http://www.proactiveinvestors.com/companies/news/102344/sunridge-gold-says-its-on-track-to-start-asmara-production-next-year-55514.html Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) says it is on track to begin production at its Asmara project in Eritrea next year, subject to permitting and funding, following the execution of its shareholders agreement with the Eritrean National Mining Corp (ENAMCO) last month.

Indeed, the signing of the long-awaited agreement to govern the operations and funding of the project kick started activities at Asmara into high gear, as potential financiers were no doubt waiting to see the de-risking deal get completed. The project will be owned by the Asmara Mining Share Company, which will be held 60 percent by Sunridge and 40 percent by ENAMCO, split between a 30 percent participating interest and a 10 percent stake that will be carried to production.

Sunridge told investors Thursday that provided that the mining license for Asmara is issued by the government as expected later this year or early next, and funding is in place, phase 1 production will be on track to start in the fourth quarter of 2015.

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

Sunridge has been delivering on shareholder expectations throughout the development process for the project, with management taking the original feasibility study released last May back to the drawing board to rejig Asmara as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life. 

The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7 percent, making Asmara a much more attractive project. The new model yielded a net present value of US$692 million at the project, and an IRR of 34 percent, using a 10 percent discount rate. 

The company even said that capital and operating costs for the first phase of the project are currently being reviewed as management has identified opportunities to potentially lower these costs, and further bolster economics. 

Project financing discussions for the project are still underway, with an information memorandum distributed to a group of potential debt financing lenders in late 2013. Sunridge said several financing options are under consideration, including conventional senior secured project debt and subordinated loans. Talks are continuing, with expectations potential lending groups will deliver indicative term sheets by the end of this year.

Sunridge also said it expects to pick out an engineering contractor for the phase 2 and 3 operations at Asmara in December, with basic design work slated to begin soon afterwards.

Under the terms of the shareholders agreement with the Eritrean company, all future project development or exploration costs will be carried one third by ENAMCO, as well as all project costs back-dated to July 2012, generating an immediate $6 million from ENAMCO for the shared company.

ENAMCO will also pay Sunridge US$18.33 million in stages prior to production in return for its rights to the property, with US$2 million paid immediately on signing of the shareholders agreement, and another $3 million this year to be shelled out evenly on a monthly basis beginning September 30. 

The balance of US$13.33 million will be paid in installments on signing of a finance agreement that secures a significant portion of the funds required to develop the project, Sunridge said.

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Thu, 17 Jul 2014 09:20:00 -0400 http://www.proactiveinvestors.com/companies/news/102344/sunridge-gold-says-its-on-track-to-start-asmara-production-next-year-55514.html
<![CDATA[News - Sunridge Gold signs shareholders agreement for Asmara, to get US$11 mln in funding this year ]]> http://www.proactiveinvestors.com/companies/news/102051/sunridge-gold-signs-shareholders-agreement-for-asmara-to-get-us11-mln-in-funding-this-year-55084.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has inked a long-awaited shareholders agreement with ENAMCO -- the Eritrean National Mining Corporation -- to operate the Asmara project, following on from a joint venture deal signed formally in February. 

The agreement governs the operation and funding of the Asmara Mining Share Company, the entity that will own the project, and will be held 60% by Sunridge and 40% by ENAMCO, split between a 30% participating interest and a 10% stake that will be carried to production. 

Sunridge said the joint venture will have a board of directors made up of five people, three of which will represent Sunridge, and two from ENAMCO. All future project development or exploration costs will be carried one third by ENAMCO, as well as all project costs back-dated to July 2012, generating an immediate $6 million from the Eritrean corporation for the shared company.

ENAMCO will also pay Sunridge US$18.33 million in stages prior to production in return for its rights to the property, with US$2 million paid immediately on signing of the shareholders agreement, and another $3 million this year to be shelled out evenly on a monthly basis beginning September 30. 

The balance of US$13.33 million will be paid in installments on signing of a finance agreement that secures a significant portion of the funds required to develop the project, Sunridge said.

"Signing the AMSCo shareholder agreement is another major milestone that we have now achieved in the development of the Asmara mine," said president and CEO of Sunridge, Michael Hopley, in a statement announcing the news this afternoon.

"The payments from ENAMCO to Sunridge totaling US$5 million over the next few months, together with the relief from having to fund our in-country programs through AMSCo for the next US$6 million of expenditures, will provide Sunridge with a healthy treasury."

Sunridge has been delivering on shareholder expectations throughout the development process for the project, with management taking the original feasibility study released last May back to the drawing board to rejig Asmara as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life. 

The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7%, making Asmara a much more attractive project. The new model yielded a net present value of US$692 million at the project, and an IRR of 34%, using a 10% discount rate. 

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. All work is focused on bringing the project to production in 2015. 

The permitting process for the mining license at Asmara -- which is expected to take 9 to 12 months -- was also kicked into high gear late last year, with the submission to the Ministry of Energy and Mines of the project's Social and Environmental Impact Assessment report.

In an interview earlier this year, Sunridge's CEO Hopley alluded to interest in the project from the Chinese, given the large amount of copper, zinc and precious metals defined to date at Asmara, and the fact that the property is located in a country in Africa that the Chinese transact business in already.

Still, the chief executive affirmed that the company is moving ahead as if it will develop the project itself. Sunridge currently has a market cap of over $50 million, and no debt. Its stock has risen more than 45% so far this year, and is currently trading at 24 Canadian cents, up more than 4.3%. 

Shares were halted prior to the announcement today, and resumed trading shortly after the release, in the early afternoon.

Eric Coffin of HRA Advisories was upbeat about the announcement, saying the US$11 million in new capital this year "will give SGC sufficient funds to move Asmara through final permitting and development with little or no further dilution expected for Sunridge shareholders."

"I expect it will also accelerate the process of securing full project financing. It’s no secret potential financiers and potential acquirers were waiting to see these agreements get completed," he added. 

Coffin also stated that investors should expect to start seeing more news flow on Asmara on several fronts on the back of the shareholder deal, with the derisking agreement set to bring in some new buyers for the stock. 

Sunridge also has ongoing exploration that started earlier this year for its earlier stage projects, such as Kodado and Adi Rassi, with intentions to upgrade the resources there and increase their size. 

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Fri, 27 Jun 2014 12:54:00 -0400 http://www.proactiveinvestors.com/companies/news/102051/sunridge-gold-signs-shareholders-agreement-for-asmara-to-get-us11-mln-in-funding-this-year-55084.html
<![CDATA[News - Sunridge Gold's Asmara project sees interest from Chinese, says CEO Hopley in HRA Advisories interview ]]> http://www.proactiveinvestors.com/companies/news/100635/sunridge-golds-asmara-project-sees-interest-from-chinese-says-ceo-hopley-in-hra-advisories-interview-53165.html Sunridge Gold's (CVE:SGC) CEO Michael Hopley is seeing significant interest from the Chinese for its Asmara copper-zinc and precious metals project in Eritrea, he said in a recent interview with Eric Coffin of Hard Rock Analyst (HRA) Advisories. 

The junior company is one of only two additions to the HRA list in the past few months, with Coffin saying that Sunridge has "significant takeover potential". 

"The resource market is strengthening. New mines are needed and money is moving to advanced stories that are “financeable”.  

"Sunridge’s Asmara project has the high IRR and NPV relative to market value that makes it an attractive project for both financiers and larger mining companies looking for acquisitions," wrote Coffin in a recent newsletter to subscribers, which highlighted the interview with Sunridge's Hopley. 

In a difficult financing environment, Sunridge realized that it would have to re-engineer Asmara to maximize near-term cash flows and minimize the peak capital outlays to bring the project into full production. It did just that last year, staging the project so that high grade copper ore and heap leachable gold could be accessed early and at modest costs. 

The cash flow from these early operations would then be leveraged to help finance the larger, long-life mining operation. The new model yielded a net present value of US$692 million at the project, and an IRR of 34%, using a 10% discount rate. 

"That places Asmara at the high end of potential returns for new mining projects. It looks very financeable and it also makes an attractive acquisition target for a large mining company," said Coffin, the editor of HRA Advisories. 

"Keep in mind that Sunridge’s market value is about $50 million and the company is debt-free. This leaves plenty of room for a potential bidder to offer a good return to current shareholders and leave plenty on the table for itself. That combination is the reason HRA initiated coverage when the deal with ENAMCO was announced."

In February, ENAMCO --- the Eritrean National Mining Corporation --- finally formally agreed to acquire its maximum 30% participating interest in Asmara, in addition to its existing right to get a 10% interest that will be carried to production by the participating partners. In return, ENAMCO will pay Sunridge US$18.33 million, bearing interest, payable in stages, prior to production from the property. 

The Eritrean company will also pay Sunridge one third of all project development costs back-dated to July 2012, which is estimated at about US$4 million.  ENAMCO will also contribute one third of ongoing expenses on the project, including for both exploration and development.

"We are moving ahead as if we are going to do this ourselves and that’s what we will continue to do unless we get what we feel is a decent offer," said Hopley in the interview. 

"But as you know we’re working in a country in Africa that the Chinese are very comfortable with; they do quite a bit of business there. With the large amount of copper, zinc and precious metals that we have defined to date on the Asmara project it’s a fairly obvious thing to say that Asian companies, but particularly Chinese companies, have shown a lot of interest. 

"That is particularly true since we came to the agreement with ENAMCO. Obviously, we’d like to sell out at a huge premium. I mean that’s always the best exit strategy for a junior company, but in this market it’s hard to know whether that prize will ever come to fruition, so we have to see."

Both Sunridge and ENAMCO are now working towards completing a shareholders agreement, which is expected to take less than three months and will govern the management and funding of the project. Asmara will be held 60% by Sunridge, with the remainder to be held by ENAMCO.

The Asmara project, which has a three phase start-up plan, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. All work is focused on bringing the project to production in 2015. 

The permitting process for the mining license -- which is expected to take 9 to 12 months -- was also kicked into high gear late last year, with the submission to the Ministry of Energy and Mines of the project's Social and Environmental Impact Assessment report. 

Sunridge also has ongoing exploration that it plans to start in April for its earlier stage projects, such as Kodado and Adi Rassi, with intentions to upgrade the resources there and increase their size. 

The junior gold company has a 52-week trading range of 12 to 31 cents, and is currently changing hands at 25 cents, giving it a market cap of $52.45 million. So far this year, the stock has climbed over 51%. 

To read the interview with Hopley and Coffin in full, please click here. 

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Wed, 02 Apr 2014 13:25:00 -0400 http://www.proactiveinvestors.com/companies/news/100635/sunridge-golds-asmara-project-sees-interest-from-chinese-says-ceo-hopley-in-hra-advisories-interview-53165.html
<![CDATA[News - Sunridge Gold boosts after-tax net present value at Asmara by 24% to $428mln ]]> http://www.proactiveinvestors.com/companies/news/100537/sunridge-gold-boosts-after-tax-net-present-value-at-asmara-by-24-to-428mln-53028.html Sunridge Gold  (CVE:SGC) (OTCQX:SGCNF) has increased the after-tax net present value for its Asmara project in Eritrea by 24% to $428 million, the company said Thursday, based on the clarification of the tax laws in the region, specifically the application of historical expenses and depreciation in the financial model.

The figure updates the post-tax net present value from the feasibility study for Asmara released last year, which was $345 million. The company said that the pre-tax value of $692 million, at a discount rate of 10%, remains unchanged. 

The study considers the mining of all four advanced deposits that make up the Asmara project --- Emba Derho, Adi Nefas, Gupo Gold and Debarwa --- and the processing of the ore near the large Emba Derho deposit. The IRR for the project is estimated at 27% after tax. 

The robust figures have led the company to hit new highs recently after last month ENAMCO -- the Eritrean National Mining Corporation --- finally agreed to formally acquire its maximum 30% participating interest in Asmara, in addition to its existing right to get a 10% stake that will be carried to production by the participating partners. 

In return, ENAMCO has promised to pay Sunridge US$18.33 million in stages prior to production, and will also pay Sunridge one third of all project development costs back-dated to July 2012, as well as one third of ongoing expenses, including for exploration and development. The partners are now working towards completing a shareholders agreement, which will govern the management and funding of the project. 

The property will eventually be held 60% by Sunridge, while ENAMCO will hold the remainder. 

The company has been delivering on shareholder expectations throughout the development process for the project, with management taking the original feasibility study released last May back to the drawing board to rejig Asmara as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life. 

The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7%, making Asmara a much more attractive project.

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. All work is focused on bringing the project to production in 2015. 

The permitting process for the mining license at Asmara -- which is expected to take 9 to 12 months -- was also kicked into high gear late last year, with the submission to the Ministry of Energy and Mines of the project's Social and Environmental Impact Assessment report. 

The company said Thursday that an amended feasibility technical report, which will include the updated application of Eritrean tax laws, is being completed, and will be filed within 30 days. 

Sunridge Gold closed at 26 cents on Wednesday, giving it a market cap of just under $55 million, about one eighth of its latest net present value for Asmara on an after tax basis. Year-to-date, the stock is up over 57%. 

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Thu, 27 Mar 2014 09:32:00 -0400 http://www.proactiveinvestors.com/companies/news/100537/sunridge-gold-boosts-after-tax-net-present-value-at-asmara-by-24-to-428mln-53028.html
<![CDATA[News - Sunridge Gold's Asmara project "attractive and financeable", says Eric Coffin of Hard Rock Analyst Journal ]]> http://www.proactiveinvestors.com/companies/news/100233/sunridge-golds-asmara-project-attractive-and-financeable-says-eric-coffin-of-hard-rock-analyst-journal-52608.html Sunridge Gold's (CVE:SGC) Asmara project in Eritrea fits the bill of good long life base metal projects that are in demand, with the potential for other satellite projects to extend the estimated 15-year life, writes Eric Coffin of Hard Rock Analyst Journal. 

The company, in which Coffin is a shareholder, has advanced its project to full feasibility stage, and has been in discussions with banking groups about debt financing for the property, also getting interest from senior companies. 

The project has "fairly strong internals", writes Coffin in a February 25 edition of HRA Journal, with a pre-tax net present value of US$692 million, at a 10% discount rate, and an IRR of 34%, with metal prices near those of today. 

Sunridge has been hitting new highs of late, after last month ENAMCO --- the Eritrean National Mining Corporation --- finally formally agreed to acquire its maximum 30% participating interest in Asmara, in addition to its existing right to get a 10% interest that will be carried to production by the participating partners. In return, ENAMCO will pay Sunridge US$18.33 million, bearing interest, payable in stages, prior to production from the property. 

The Eritrean company will also pay Sunridge one third of all project development costs back-dated to July 2012, which is estimated at about US$4 million.  ENAMCO will also contribute one third of ongoing expenses on the project, including for both exploration and development.

Both Sunridge and ENAMCO are now working towards completing a shareholders agreement, which is expected to take less than three months and will govern the management and funding of the project. Asmara will be held 60% by Sunridge, with the remainder to be held by ENAMCO.

"Cash on hand and monies to be received from ENAMCO should carry SGC though permitting and bulking up management for development and construction though I’m hoping for a clean simple takeover," says Coffin. 

"A large placement done at 19 cents has just become tradable. This should provide a window for accumulation though there is not a lot of new stock getting offered yet."

The analyst describes Sunridge's story to get to this stage as familiar in some ways, but markedly different in others. He says that like many development-level companies, it gained ground in the middle of the last decade, only to have its market value "decimated" as the market turned away from the story. However, unlike many other juniors in that position, Sunridge "has managed to persevere and move its marquee project forward."

"The effort came at the expense of share dilution but has been, nonetheless, successful. A big part of that success came from giving the market what it wanted," Coffin writes. 

"Management took the original feasibility study for Asmara and went back to the drawing board. The project was rejigged as a staged project where low volume but high grade mining in the first stage would help pay for capex for the larger plant required for the bulk of the mine life."

The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7%, the analyst noted. "This made Asmara a much more attractive and financeable project."

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. All work is focused on bringing the project to production in 2015. 

The permitting process for the mining license at Asmara -- which is expected to take 9 to 12 months -- was also kicked into high gear late last year, with the submission to the Ministry of Energy and Mines of the project's Social and Environmental Impact Assessment report. 

Coffin also points out that Sunridge's current market value is about one ninth of the net present value to its account, using an 8% discount rate, leaving "a lot of room for accretive value addition as the project advances."

"It also leaves room for a potential acquirer to bid above the current price and still have a deal that makes sense," he concludes. 

Shares of Sunridge have surged 60% year to date, and are currently changing hands at 26.5 Canadian cents in Toronto.

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Fri, 07 Mar 2014 13:21:00 -0500 http://www.proactiveinvestors.com/companies/news/100233/sunridge-golds-asmara-project-attractive-and-financeable-says-eric-coffin-of-hard-rock-analyst-journal-52608.html
<![CDATA[News - Sunridge Gold hits new 52-week high as ENAMCO deal impresses ]]> http://www.proactiveinvestors.com/companies/news/99900/sunridge-gold-hits-new-52-week-high-as-enamco-deal-impresses-52072.html Sunridge Gold Corp (CVE:SGC) (OTCQX:SGCNF) shares reached a new 52-week high on Friday, as the company rallied on the back of the rising gold price as well as news from earlier this month that will finally see the Eritrea National Mining Corp (ENAMCO) acquire a maximum 30% stake in the gold explorer's Asmara project. 

The news, released in early February, announced that ENAMCO formally agreed to acquire the maximum 30% stake following months of negotiations. The binding term sheet follows on from the initial agreement first announced in August 2012. 

Under the terms, ENAMCO has exercised its right to acquire its maximum 30% participating interest in the project, in addition to its existing right to get a 10% interest that will be carried to production by the participating partners. 

In return, ENAMCO will pay Sunridge US$18.33 million, bearing interest, payable in stages prior to production from the property. The Eritrean company will also pay Sunridge one third of all project development costs back-dated to July 2012, which is estimated at about US$4 million.  ENAMCO will also contribute one third of ongoing expenses on the project, including for both exploration and development.

Both Sunridge and ENAMCO are now working toward completing a shareholders agreement, which is expected to take less than three months. The agreement will govern the management and funding of the project, which will be held 60% by Sunridge, with ENAMCO holding the remaining 40%. 

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

The junior gold company has been ramping up development of the proposed mine, with all work focused on bringing the project into production in 2015.  It released a feasibility study last year on the four advanced deposits at the project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa), which showed that mining of the deposits and processing of the ore near the large Emba Derho deposit is favourable, with a net present value of $692 million using a 10% discount rate, and an IRR of 34%. 

Sunridge, in its announcement of the formal deal, took note that the valuation for ENAMCO's interest is calculated based on a July 2012 date, and therefore is largely based on the results of Asmara's pre-feasibility study published earlier that same year. This means that the full feasibility study completed last May, which showed "significantly higher value" was not taken into account. 

The permitting process for the mining license at Asmara -- which is expected to take 9 to 12 months -- was kicked into high gear late last year, with the submission to the Ministry of Energy and Mines of the project's Social and Environmental Impact Assessment report. 

Investors have taken notice of the company's aggressive development strategies. Shares rose to as high as 31 Canadian cents today on the TSX Venture Exchange, a new 52-week high. 

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Fri, 14 Feb 2014 11:55:00 -0500 http://www.proactiveinvestors.com/companies/news/99900/sunridge-gold-hits-new-52-week-high-as-enamco-deal-impresses-52072.html
<![CDATA[News - Sunridge Gold rises as much as 20% on deal with state-owned Eritrean mining company - UPDATE ]]> http://www.proactiveinvestors.com/companies/news/99740/sunridge-gold-rises-as-much-as-20-on-deal-with-state-owned-eritrean-mining-company-update-51840.html ***Updated with latest share price info***

Sunridge Gold Corp (CVE:SGC) (OTCQX:SGCNF) shares were jumping Wednesday, rising as much as 20% after reporting yesterday what it called the most significant milestone to date at its Asmara project in Eritrea. 

The Eritrea National Mining Corp (ENAMCO) formally agreed to acquire a maximum 30% stake in the property following months of negotiations. The binding term sheet announced Tuesday follows on from the initial agreement first announced in August 2012. 

Under the terms, ENAMCO has exercised its right to acquire its maximum 30% participating interest in the project, in addition to its existing right to get a 10% interest that will be carried to production by the participating partners. 

In return, ENAMCO will pay Sunridge US$18.33 million, bearing interest, payable in stages prior to production from the property. The Eritrean company will also pay Sunridge one third of all project development costs back-dated to July 2012, which is estimated at about US$4 million.

In addition, ENAMCO will contribute one third of ongoing expenses on the project, including for both exploration and development.

"Sunridge has passed many milestones with the development of the Asmara Project over the last few years and this is the most significant milestone to date," said president and CEO Michael Hopley, in the statement announcing the binding deal on Tuesday.

"We are very pleased that we have reached an agreement with the Eritrean Government and look forward to working cooperatively with ENAMCO to rapidly move the Asmara Project into production as soon as possible for the mutual benefit of Sunridge and the people of Eritrea."

Sunridge noted that the valuation for ENAMCO's interest is calculated based on a July 2012 date, and therefore is largely based on the results of Asmara's pre-feasibility study published earlier that same year. The company has been working aggressively to develop the project ever since, and last May, completed a full feasibility study that showed "significantly higher value", the company said. 

Both Sunridge and ENAMCO are now working toward completing a shareholders agreement, which is expected to take less than three months. The agreement will govern the management and funding of the project, which will be held 60% by Sunridge, with ENAMCO holding the remaining 40%. The joint venture company will be led by a five-member board of directors, made up of three members from Sunridge and two from ENAMCO.

Sunridge said the framework for the deal will be similar to that of Nevsun Resources', which holds the Bisha mine in Eritrea. After the shareholders agreement is completed, ENAMCO will pay $5 million as an initial payment within three months, with the remaining due to be paid in stages dependent on various milestones. 

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

The junior gold company has been ramping up development of the proposed mine, with all work focused on bringing the project into production in 2015.  It released a feasibility study last year on the four advanced deposits at the project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa), which showed that mining of the deposits and processing of the ore near the large Emba Derho deposit is favourable, with a net present value of $692 million using a 10% discount rate, and an IRR of 34%. 

The permitting process for the mining license -- which is expected to take 9 to 12 months -- was kicked into high gear late last year, with the submission to the Ministry of Energy and Mines of the project's Social and Environmental Impact Assessment report. 

Shares of Sunridge were halted prior to the news release on Tuesday, and resumed trading shortly after. The stock closed Tuesday at 25 cents, and soared as high as 30 cents this morning, pulling back to currently sit at 27 cents.  

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Wed, 05 Feb 2014 11:21:00 -0500 http://www.proactiveinvestors.com/companies/news/99740/sunridge-gold-rises-as-much-as-20-on-deal-with-state-owned-eritrean-mining-company-update-51840.html
<![CDATA[News - Sunridge Gold trading at a steep discount, says Lawrence Roulston of Resource Opportunities ]]> http://www.proactiveinvestors.com/companies/news/99560/sunridge-gold-trading-at-a-steep-discount-says-lawrence-roulston-of-resource-opportunities-51526.html Sunridge Gold (CVE:SGC) (OTCQX:SGCNF) is quickly advancing its Asmara gold-base metal project in Eritrea, with some important milestones in the offing that could potentially boost its share price, reckons Lawrence Roulston, editor of Resource Opportunities, in an article from the magazine's January issue on the junior gold company. 

"Sunridge's Asmara gold-base metal project is continuing to advance toward development, with some important mile-stones expected shortly which could positively impact the share price," he wrote in his editorial piece on Sunridge. 

"Asmara, as one of the most attractive large, advanced-stage mining projects available anywhere, is attracting consider-able attention from the mining industry. 

"That interest has not yet been reflected in the share price, which continues to languish, along with the rest of the companies in this industry. A feasibility study completed early last year showed very favorable economics: an after-tax net present value (8%) of $443 million with an internal rate of return (IRR) of 27%."

The Resource Opportunities editor also highlighted the project's "modest" capital requirement of $46 million for the first phase of development. While the first phase is developed, and begins producing, the  main part of the project will also be in development, involving the full scale open pit mining operation and construction of a flotation mill, with a total capex of $357 million.

Earlier this month, Sunridge provided an outlook for the new year, saying it anticipates passing several milestones on its way to beginning production at Asmara. The permitting process for the mine begun last month, with the company submitting its social and environmental impact assessment report for Asmara. This initiates the process to acquire the mining license, which is expected to take between nine and 12 months. 

Negotiations are also continuing with Sunridge and the Eritrean National Mining Corporation (ENAMCO) over the price the state-controlled organization will pay to the company to purchase 30% of the Asmara project. Sunridge said that management is "encouraged" with the progress made late in 2013, with expectations that negotiations will be completed early this year. 

Roulston, in his article, wrote that investors shouldn't be concerned about the location  of the project. 

"At a time when investors are particularly risk-averse, many investors are concerned about the location of the project, being in Eritrea in Africa. The reality is that Eritrea is a favorable place for mining: Nevsun (NSU-TSX) successfully developed and operates the Bisha mine in that country."

"Nevsun received debt funding for the project from international banking firms, and those same groups are willing to lend to the Sunridge project."

Indeed, in its statement on January 13, Sunridge said a project information memorandum was sent to a group of potential debt financing lenders late last year, which included commercial and development banks, export credit agencies, equipment suppliers, potential off-take partners and royalty and streaming groups. The company noted that several financing options are still being considered, with debt discussions to continue throughout the first quarter. Based on this timeline, indicative term sheets are anticipated by the second half of this year, according to Sunridge's statement.

Roulston added: "Another mining project is presently under development in the country, after it was acquired by a Chinese mining company. There are a number of international mining companies that would be very happy to be involved in a project as attractive as Asmara and see Eritrea as a favorable place to operate a mine."

The writer concluded that the company's shares are "greatly undervalued", based on normal metrics, as the current market cap of Sunridge is less than one tenth of the value implied by its share of the after-tax net present value, as determined in the feasibility study. 

As the milestones unfold this year, the expectations are high that Sunridge's share price will increase, especially with the negotiations with ENAMCO seemingly near completion. "Having a deal in place will enable the various mining and other investment groups looking at the project to finalize their analyses and to bring forward offers," Roulston wrote.

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

To read the full Roulston article, please click here. 

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Fri, 24 Jan 2014 09:05:00 -0500 http://www.proactiveinvestors.com/companies/news/99560/sunridge-gold-trading-at-a-steep-discount-says-lawrence-roulston-of-resource-opportunities-51526.html
<![CDATA[News - Sunridge Gold rises on 2014 outlook for Asmara mine ]]> http://www.proactiveinvestors.com/companies/news/99358/sunridge-gold-rises-on-2014-outlook-for-asmara-mine-51209.html Sunridge Gold Corp.  (CVE:SGC) (OTCQX:SGCNF) provided Monday an outlook for the new year, which is expected to be an important period for the company as it anticipates passing several milestones on its way to beginning production at its Asmara project in Eritrea. 

Investors pushed the stock up more than 8% on Monday, to 19.5 Canadian cents on the TSX Venture Exchange.

The permitting process for the mine begun last month, with the company submitting its social and environmental impact assessment report for Asmara. This initiates the process to acquire the mining license, which is expected to take between nine and 12 months. 

Negotiations are also continuing with Sunridge and the Eritrean National Mining Corporation (ENAMCO) over the price the state-controlled organization will pay to the company to purchase 30% of the Asmara project. 

Sunridge said that management is "encouraged" with the progress made late in 2013, with expectations that negotiations will be completed early this year. 

Meanwhile, a project information memorandum was sent to a group of potential debt financing lenders late last year, which included commercial and development banks, export credit agencies, equipment suppliers, potential off-take partners and royalty and streaming groups, Sunridge said. 

In the update Monday, the company noted that several financing options are still being considered, with debt discussions to continue throughout the first quarter. Based on this timeline, indicative term sheets are anticipated by the second half of this year, according to Sunridge's statement.

The junior development company hired Micon International to complete an independent due diligence review of the project for prospective lenders, which is now available. 

Sunridge is also on its way to selecting an engineering firm for the EPCM contract for the mine, with tendering expected in mid-2014. 

The junior gold company recently accelerated its pace of development at Asmara after closing a $5.75 million private placement financing, with all work focused on bringing the project into production in 2015. 

It released a feasibility study last year on the four advanced deposits at the project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa), which showed that mining of the deposits and processing of the ore near the large Emba Derho deposit is economically robust, with a net present value of $692 million using a 10% discount rate, and an IRR of 34%. 

Eritrea is also home to Nevsun Resources' (TSE:NSU) Bisha mine, which recently passed its third anniversary of production, and after more than two years of gold output from the oxide gold zone, transitioned to copper. These copper concentrates are being trucked to the port of Massawa, where they are transferred to bulk-handling ships in the same way that is planned for the Asmara mine.

Construction is also underway on what will be the second operating mine in the country, at the Koka gold mine in the north-central parts. Both Bisha and Koka are fully supported by Eritrea's government, noted Sunridge, with ENAMCO holding a 40% interest in each mine.

The Asmara project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years. 

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Mon, 13 Jan 2014 10:48:00 -0500 http://www.proactiveinvestors.com/companies/news/99358/sunridge-gold-rises-on-2014-outlook-for-asmara-mine-51209.html
<![CDATA[News - Sunridge Gold's mining license application underway as environmental assessment submitted for Asmara project ]]> http://www.proactiveinvestors.com/companies/news/99130/sunridge-golds-mining-license-application-underway-as-environmental-assessment-submitted-for-asmara-project-50839.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has finished the first step in the permitting process required for the application of its mining license at the Asmara project in Eritrea, after saying it has submitted its social and environmental impact assessment to the Ministry of Energy and Mines.

This begins the permitting process for the application, which is expected to take between 9 and 12 months, the company said. Sunridge will submit other related documents such as the full social and environmental impact appendices and the draft social and environmental management plant to the Ministry in January and February, respectively. 

The junior gold company recently accelerated its pace of development at Asmara after closing a $5.75 million private placement financing, with all work focused on bringing the project into production in 2015. 

It released a feasibility study earlier in the year on the four advanced deposits at the project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa), which showed that mining of the deposits and processing of the ore near the large Emba Derho deposit is economically robust, with a net present value of $692 million using a 10% discount rate, and an IRR of 34%. 

Discussions continue with potential debt financing lenders for the property, with Micon International working to complete a due diligence review of the project for the interested investors, due to wrap up before the end of the year. 

Sunridge says it is also in talks with interested parties that could lead to a potential acquisition of the company, or "some or all of the Asmara project". 

The economic study outlined a three-phase start-up mining operation at the project, which would initiate production in 2015 starting with high-grade copper and gold direct shipping ore 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.

Separately, Sunridge also announced today that it has hired mining engineer Chris Attwood as operations manager of the Asmara project. Attwood, with more than 10 years of experience of which his last two were spent as a mine manager at the Bisha mine in Eritrea, will manage the Asmara mine as it advances into construction and operations.

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Thu, 19 Dec 2013 11:28:00 -0500 http://www.proactiveinvestors.com/companies/news/99130/sunridge-golds-mining-license-application-underway-as-environmental-assessment-submitted-for-asmara-project-50839.html
<![CDATA[Media files - Sunridge Gold says fundraiser provides validation of the quality of its flagship asset ]]> http://www.proactiveinvestors.com/companies/stocktube/3683/sunridge-gold-says-fundraiser-provides-validation-of-the-quality-of-its-flagship-asset--.html Mon, 09 Dec 2013 04:44:00 -0500 http://www.proactiveinvestors.com/companies/stocktube/3683/sunridge-gold-says-fundraiser-provides-validation-of-the-quality-of-its-flagship-asset--.html <![CDATA[News - Sunridge Gold accelerates pace of work at Asmara in light of recent financing ]]> http://www.proactiveinvestors.com/companies/news/98217/sunridge-gold-accelerates-pace-of-work-at-asmara-in-light-of-recent-financing-49446.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) says it has boosted its activities on the developing Asmara project in Eritrea after recently closing a $5.75 million private placement financing, with all work focused on bringing the project into production in 2015. 

"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," said president and CEO Michael Hopley in a statement Thursday. 

"Completing the latest financing enables Sunridge to achieve all these value-added goals before the end of the year."

Indeed, the company has made some notable progress since releasing a feasibility study earlier in the year, with an application for a mining license to be submitted once the social and environmental impact assessment is complete, Sunridge said, expected next month. 

The feasibility study on the four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) showed that mining of the deposits and processing of the ore near the large Emba Derho deposit is economically robust. with a net present value of $692 million using a 10% discount rate, and an IRR of 34%. 

Discussions continue with potential debt financing lenders for the property, with Micon International working to complete a due diligence review of the project for the interested investors, due to wrap up before the end of the year. Sunridge says it is also in talks with interested parties that could lead to a potential acquisition of the company, or "some or all of the Asmara project". 

Meanwhile, negotiations continue with Eritrean National Mining Corp to determine the price it will pay to buy 30% of the project from Sunridge, seen as an important step in further de-risking the asset. 

Engineering firms, to be selected for the engineering, procurement and construction management contract, are preparing requests for proposal for the first quarter of next year, according to Sunridge's statement. The three-phase mining operation would start production in 2015 with high grade copper and gold direct shipping ore output from Debarwa and heap leaching of near surface gold, followed by supergene copper production and then zinc and copper at a full production rate of 4 million tonnes per year. 

In addition, Chris Attwood, previously mine manager for over 2 years at the Bisha mine in Eritrea owned by Nevsun Resources, was recently hired as operations manager to start work at the project.

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Thu, 31 Oct 2013 10:32:00 -0400 http://www.proactiveinvestors.com/companies/news/98217/sunridge-gold-accelerates-pace-of-work-at-asmara-in-light-of-recent-financing-49446.html
<![CDATA[Media files - Sunridge Gold CEO talk merits of "undervalued" Eritrea project at Subscriber Investment Summit ]]> http://www.proactiveinvestors.com/companies/stocktube/3666/sunridge-gold-ceo-talk-merits-of-undervalued-eritrea-project-at-subscriber-investment-summit-509.html Tue, 29 Oct 2013 08:41:00 -0400 http://www.proactiveinvestors.com/companies/stocktube/3666/sunridge-gold-ceo-talk-merits-of-undervalued-eritrea-project-at-subscriber-investment-summit-509.html <![CDATA[News - Sunridge Gold raises $5.75 mln for Eritrea project ]]> http://www.proactiveinvestors.com/companies/news/98031/sunridge-gold-raises-575-mln-for-eritrea-project-49136.html Sunridge Gold Corp. (CVE:SGC)(OTCQX:SGCNF) has closed two concurrent financings to raise a total of $5.75 million, the company said Tuesday. 

It raised $3.66 million through a brokered financing by Tempest Capital Corp, and another $2.09 million via a concurrent non-brokered placement. 

A total of 30.26 million units were issued, at a price of 19 cents apiece. Each unit was made up of one common share and one share purchase warrant, with every warrant good for one additional share at a price of 35 cents each until October 18, 2017. 

The company said it is planning to use the net proceeds of the private placement to develop its Asmara project in Eritrea further, as well as for general working capital. 

Earlier this month, Sunridge boosted the size of its financing for the second time, originally planning to raise up to $3 million. Sunridge is moving ever closer to production with the Vancouver-based exploration and development company very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making notable progress. 

The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust. In recent days, the company has undertaken a social and environmental impact assessment due for completion this month, in order to make application to the government for a mining license. 

In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price the government organization will pay to purchase 30 per cent of the project from Sunridge. Discussions with potential debt financing lenders have also begun, as has an independent due diligence review. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.

The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.

Separately, the company also said Tuesday that it settled outstanding debts with "arm's length parties" in the amount of $830,128 by issuing 4.37 million units concurrent with the closing of the private placement. 

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Tue, 22 Oct 2013 11:20:00 -0400 http://www.proactiveinvestors.com/companies/news/98031/sunridge-gold-raises-575-mln-for-eritrea-project-49136.html
<![CDATA[News - Sunridge Gold increases financing for a second time to $5 mln ]]> http://www.proactiveinvestors.com/companies/news/97863/sunridge-gold-increases-financing-for-a-second-time-to-5-mln-48864.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has boosted the size of its financing for the second time, with the latest increase taking the amount it will raise for its Asmara project in Eritrea to $5 million.

Earlier this month, the company increased the brokered private placement to $4 million from $3 million previously. 

Under the terms of the agreement, for which Tempest Capital is acting as agent, the company will issue up to 26.3 million units at a price of 19 cents apiece. 

Each unit will be made up of one common share and one share purchase warrant, with every warrant good for one additional share at a price of 35 cents each until October 18, 2017. Sunridge has also granted the agent an option to sell up to an additional 15 per cent of the number of units, or a maximum of 3.95 million units. 

The proceeds will go toward the Asmara project in Eritrea, as well as for general working capital needs. 

The company also said it will move to settle outstanding debts with "arm's length parties" in the amount of $830,128 by issuing units concurrent with the closing of the  private placement. It will make an application to the TSX Venture Exchange to list the shares and warrants issued under the placement, which is expected to close on October 18. 

Sunridge is moving ever closer to production with the Vancouver-based exploration and development company very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making notable progress. The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust.

In recent days, the company has undertaken a social and environmental impact assessment due for completion this month, in order to make application to the government for a mining license. In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price the government organization will pay to purchase 30 per cent of the project from Sunridge.

Discussions with potential debt financing lenders have also begun, as has an independent due diligence review -- the step in advance of signing the financing agreement, when potential investors examine the project in detail before deciding to fund work on the property. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.

The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.

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Fri, 11 Oct 2013 09:32:00 -0400 http://www.proactiveinvestors.com/companies/news/97863/sunridge-gold-increases-financing-for-a-second-time-to-5-mln-48864.html
<![CDATA[News - Sunridge Gold boosts size of financing to $4 mln, hires new CFO ]]> http://www.proactiveinvestors.com/companies/news/97732/sunridge-gold-boosts-size-of-financing-to-4-mln-hires-new-cfo-48639.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has boosted the size of its brokered private placement financing to $4 million from $3 million previously, with the proceeds to go towards the further development of its Asmara project in Eritrea. 

The company, which is working to move its project to the production stage, will issue up to 21.05 million units at a price of 19 cents apiece, with Sunridge also granting the agent, Tempest Capital, an option to sell up to an additional 15 per cent of the number of units, or a maximum of 3.16 million units. 

Each unit will be made up of one common share and one share purchase warrant, with every warrant good for one additional share at a price of 35 cents each until October 18, 2017. 

The company also said it will move to settle outstanding debts with "arm's length parties" in the amount of $830,128 by issuing units concurrent with the closing of the  private placement. It will make an application to the TSX Venture Exchange to list the shares and warrants issued under the placement. 

Separately, the company announced that its CFO, Doris Meyer, has decided to retire from her role effective at the start of this month, with Sunridge appointing Dan O'Brien as her successor. O'Brien was previously a senior manager at a Canadian accounting firm, where he specialized in the audit of public companies in the mining and resource sector. 

Sunridge is moving ever closer to production with the Vancouver-based exploration and development company very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making notable progress.

The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust.

In recent days, the company has undertaken a social and environmental impact assessment due for completion this month, in order to make application to the government for a mining license. In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price the government organization will pay to purchase 30 per cent of the project from Sunridge.

Discussions with potential debt financing lenders have also begun, as has an independent due diligence review -- the step in advance of signing the financing agreement, when potential investors examine the project in detail before deciding to fund work on the property. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.

The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.

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Thu, 03 Oct 2013 10:29:00 -0400 http://www.proactiveinvestors.com/companies/news/97732/sunridge-gold-boosts-size-of-financing-to-4-mln-hires-new-cfo-48639.html
<![CDATA[News - Sunridge Gold to raise up to $3 mln for Asmara project ]]> http://www.proactiveinvestors.com/companies/news/97472/sunridge-gold-to-raise-up-to-3-mln-for-asmara-project-48244.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has been steadfast in the advancement of its Asmara project in Eritrea, making progress on all fronts, with the latest development being a plan to raise up to $3 million in a private placement. 

The company told investors on Thursday that it has appointed Tempest Capital Corp to act as agent for the offering, which will see Sunridge issue up to 15.79 million units at a price of 19 cents apiece. 

Each unit will be made up of one common share and one share purchase warrant, with every warrant entitling the holder to purchase one additional share at a price of 35 cents each until October 18, 2017.  

Sunridge is planning to use the new funds for further development of its Asmara property as well as general working capital purposes. The offering, which is still subject to regulatory approvals, is expected to close by October 18. 

The company is moving ever closer to production with the Vancouver-based exploration and development company very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making notable progress.

The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust.

In recent days, the company has undertaken a social and environmental impact assessment due for completion next month, in order to make application to the government for a mining license.

In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price the government organization will pay to purchase 30 per cent of the project from Sunridge.

Discussions with potential debt financing lenders have also begun, as has an independent due diligence review -- the step in advance of signing the financing agreement, when potential investors examine the project in detail before deciding to fund work on the property. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.

The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.

Separately, the company also said Thursday that it intends to settle outstanding debt of $830,128 by issuing units, a transaction that also still needs TSX Venture Exchange approval. 

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Thu, 19 Sep 2013 10:37:00 -0400 http://www.proactiveinvestors.com/companies/news/97472/sunridge-gold-to-raise-up-to-3-mln-for-asmara-project-48244.html
<![CDATA[News - Sunridge Gold makes great strides at Asmara project ]]> http://www.proactiveinvestors.com/companies/news/97162/sunridge-gold-makes-great-strides-at-asmara-project-47692.html Sunridge Gold (CVE:SGC) is moving ever closer to production on its Asmara project with the Vancouver-based exploration and development company, very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making progress on all fronts.

The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust.

In recent days, the company has undertaken a social and environmental impact assessment due for completion next month, in order to make application to the government for a mining license.

In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price they will pay to purchase 30 per cent of the project from Sunridge.

Discussions with potential debt financing lenders have also begun, as has an independent due diligence review -- the step in advance of signing the financing agreement, when potential investors examine the project in detail before deciding to fund work on the property. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.

Also in process is the selection of an engineering group to undertake detailed engineering work; new key employees have been hired to start work on the project before the end of this calendar year, while advanced talks with other potential employees are in progress.

Meanwhile, the company continues exploration activities on its "pipeline deposits" on the Asmara project -- recently, initial resource estimates were announced for two new deposits: Adi Rassi, a large copper-gold deposit, and Kodadu, a surface gold deposit.

Unsurprisingly, Sunridge said it is courting interest from major companies with discussions currently underway with a number of interested parties that could lead to a potential acquisition of either the company itself or some or all of the Asmara project. 

The independent feasibility study conducted on the project in May by lead engineer SENET demonstrated that the mining of all four advanced deposits that make up the Asmara project show a net present value (NPV) of $443 million after tax at an 8 per cent discount rate.

That study, in which SENET outlined a three-phase staged start-up mining plan that would initiate production in 2015 starting with a near-surface oxide gold cap and moving into high grade copper then zinc, resulted in the reduction of the planned initial capital requirements by more than $130 million in comparison with the prefeasibility study published in May 2012, and succeeded in bringing the schedule for the start of initial production forward by almost a year. 

The combination of earlier than expected production and cash flow, combined with capital cost reductions, lowered the project’s initial capex requirements from $489 million to $354 million - good news for investors in a challenging market.

The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.

Shares in Sunridge closed up higher on the TSX-Venture Exchange the day before the production update, adding half a penny to close at 21 cents.

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Wed, 04 Sep 2013 09:23:00 -0400 http://www.proactiveinvestors.com/companies/news/97162/sunridge-gold-makes-great-strides-at-asmara-project-47692.html
<![CDATA[News - Sunridge Gold's path to production shines as potential partners circle ]]> http://www.proactiveinvestors.com/companies/news/96138/sunridge-golds-path-to-production-shines-as-potential-partners-circle-45911.html Sunridge Gold (CVE:SGC) is surging ahead with its Asmara project in Eritrea, getting close to securing a debt financing to put its flagship property into production, according to CEO Michael Hopley, who spoke to Proactive Investors in an interview last week. 

In June, the company initiated a due diligence review -- the step in advance of signing the financing agreement, when potential investors examine the project in detail before deciding to fund work on the property – that is being conducted by Micon International. 

The Vancouver-based exploration and development company, very much focused on its flagship copper-zinc-gold-silver Asmara project in the eastern-African nation of Eritrea, is planning to receive the due diligence review, which includes all environmental work, by the third quarter, after which it expects to ink a financing agreement. 

"We have been talking to various people about various ways of debt financing for the project, including with European and South African banks, equipment suppliers, smelters, potential off-take or streaming partners - you name it," says Hopley.

"A lot of companies out there are looking at our project in detail since the feasibility study."

It makes good sense. The company's Asmara project in May was the subject of an independent feasibility study by lead engineer SENET that succeeded in bringing the schedule for commencement of initial production forward by almost a year. Quite a feat when miners are struggling to get their projects off the ground. 

That study, in which SENET outlined a three-phase staged start-up mining plan that would initiate production in 2015 starting with a near-surface oxide gold cap and moving into high grade copper then zinc, resulted in the reduction of the planned initial capital requirements by more than $130 million in comparison with the prefeasibility study published in May 2012.

Indeed, the combination of earlier than expected production and cash flow, combined with capital cost reductions, lowered the project’s initial capex requirements from $489 million to $354 million - good news for investors in a challenging market.

The study also demonstrated that the mining of all four advanced deposits that make up the Asmara project - Emba Derho, Adi Nefas, Gupo Gold and Debarwa - and the processing of the ore near the large Emba Derho deposit is economically robust, with a net present value (NPV) of $443 million after tax at an 8 per cent discount rate.

"We achieved what we set out to achieve in the year since our prefeasibility study. We initiated production earlier by about a year and reduced capital costs using a staged, start-up scenario," boasts Hopley. "It's a good approach to a project given the market conditions when people are concerned about capital costs and the long time it takes to get properties into production."

The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. 

Average operating costs over the life of the mine are estimated at just under $30 a tonne -- "very good considering these costs include the expensive underground mining from Adi Nefas", says the CEO. In fact, excluding the underground mining, he notes that the operating costs move quite a bit lower, to around $25 a tonne for the open pit operations, which take up a larger part of the mine life. 

"Sometimes, I think it's missed by the market that before we did the pre-feasibility study, we did not know that we could combine, both logistically and economically, these four deposits and that it would actually be the best economic scenario to combine them. 

"The Debarwa deposit is almost twice as valuable as part of a larger operation than as a standalone," affirms Hopley. 

The planned staged operation of the four combined deposits is even more reason to take a second look at the project in an environment when many miners can't seem to make ends meet, with rising costs outpacing cash flow. With Sunridge's plan, cash flow from phase 1 operations will be used to pay for some of phase 2, and so on, "reflecting a very appropriate approach, and one that gets a great response from investors", says the chief executive. 

The Canadian-listed gold company also has two other deposits that are not yet "far enough along", and have not been included in the feasibility study, but with further drilling in the next few months, could increase the mine life substantially, according to Hopley. 

As recently as late May, Sunridge announced a mineral resource estimate for the Kodadu target on the Asmara project, the sixth such mineral resource defined by the Vancouver-based junior at the asset. The freshly-defined resource included 990,000 inferred tonnes with an average grade of 1.24 grams per tonne (g/t) of gold and 1.6 g/t of silver, with 39,000 ounces of gold and 51,000 ounces of silver contained metal in the near surface oxide.

Although Hopley says that the Kodadu target, together with the fifth Adi Rassi resource that was defined late last year, will remain excluded from plans to bring the first established four deposits to production, he explains the Kodadu resource could potentially join in with initial phase 1 leaching operations. "Adi Rassi, however, will be much larger and needs to go through a lot more work. It won't be part of the operation anytime soon."

With $2 million of cash on hand, and the company now moving toward a low cash-burn environment in the wake of completing its feasibility study, it has fewer steps in its path to bringing its four established Asmara deposits to production. 

Aside from the debt financing, it must submit its mining license application, which it will be free to do after it wraps up its environmental work and social engagement programs. 

"Ninety-five per cent of the work is done. We have a good and competent international team as well as local consultants on the process, which will all be done to IFC standards. We expect it to be a stellar study," says Hopley of the final work required for the mining license application. 

In another aspect of the project geared to reassure investors, once the mining license for the project is granted, the government of Eritrea will have a 10 per cent carried interest, and ENAMCO, the Eritrean National Mining Corporation, will be purchasing an additional 30 per cent of the project, thereby becoming responsible for one third of all capital and operating costs at the mine going forward. 

"The amount ENAMCO will be paying for the 30 per cent interest is still being negotiated, but the important point to note is that the government of Eritrea will now be responsible for one third of all expenses on the project since last July," Hopley adds. 

The mining license, which is expected to take between 6 to 12 months to receive from the point of application, is anticipated to be in hand by October of next year at the latest. 

"A number of companies have taken a very active role in looking at the project since the feasibility study, particularly Chinese state-owned enterprises that are looking for large deposits of base metals in Africa," says the chief. "It's a jurisdiction they are comfortable with," he concludes. 

The project is certainly well on its way to production, with the kick off date slated for the first quarter of 2015. Shares of the company are currently trading around 13 cents, giving it a market capitalization of $23 million.

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Wed, 10 Jul 2013 09:42:00 -0400 http://www.proactiveinvestors.com/companies/news/96138/sunridge-golds-path-to-production-shines-as-potential-partners-circle-45911.html
<![CDATA[News - Sunridge Gold takes another step towards production with debt financing due diligence review ]]> http://www.proactiveinvestors.com/companies/news/95506/sunridge-gold-takes-another-step-towards-production-with-debt-financing-due-diligence-review-44821.html Progress is continuing at high speed on Sunridge Gold Corp’s (CVE:SGC) Asmara project in Eritrea, with the company announcing the next stage in the process towards production - that is, the independent debt financing due diligence review.

The Vancouver-based explorer, very much focused on its flagship gold-copper-zinc Asmara project in the eastern-African nation of Eritrea, announced Monday its selection of international mining industry consulting company Micon International Limited to complete the review. 

In its review, Micon is to cover all aspects of the project, including mineral resources and mineral reserves, metallurgy, processing plant and infrastructure, mine design, economic analysis, and environmental and social engagement programs. The company’s team, which has already visited the site, will conduct its review of the feasibility study during the third quarter of this year. 

"Micon's due diligence review of the Asmara Project for the banks is an important step towards being able to debt finance the Asmara Mine into production," said president and CEO Michael Hopley, in a company statement released with the announcement.

The announcement signals another step on the journey towards production for the project, which as recently as last month was the subject of an independent feasibility study by lead engineer SENET that succeeded in bringing the schedule for commencement of initial production forward by almost a year.

That study, in which SENET outlined a three-phase staged start-up mining plan that would initiate production in 2015 starting with a gold cap and moving into high grade copper then zinc, resulted in the reduction of the planned initial capital requirements by more than $130 million in comparison with the prefeasibility study published in May 2012.

Indeed, the combination of earlier than expected production and cash flow, combined with capital cost reductions, lowered the project’s initial capex requirements from $489 million to $354 million - good news for investors in a challenging market.

The study also demonstrated that the mining of all four advanced deposits that make up the Asmara project - Emba Derho, Adi Nefas, Gupo Gold and Debarwa - and processing of the ore near the large Emba Derho deposit is economically robust, with a net present value (NPV) of $692 million at a 10 per cent discount rate.

The week following that announcement brought more good news with the mining junior releasing details of the sixth NI43-101 and JORC compliant mineral resource estimate on the property. 

In addition, in another aspect of the project geared to reassure investors, once the mining license for the project is granted, the government of Eritrea will have a 10 per cent carried interest, and ENAMCO, the Eritrean National Mining Corporation, will be purchasing an additional 30 per cent of the project, thereby becoming responsible for one third of all capital and operating costs at the mine going forward. 

Endeavour Financial Limited, already familiar with advising companies working in Eritrea via their work with Nevsun Resources Limited, is to lead the process on the debt financing due diligence review until the lender group is formed. 

Shares in Sunridge Gold were trading at 16 cents per share at close of the trading day immediately prior to the announcement.

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Mon, 10 Jun 2013 09:22:00 -0400 http://www.proactiveinvestors.com/companies/news/95506/sunridge-gold-takes-another-step-towards-production-with-debt-financing-due-diligence-review-44821.html
<![CDATA[News - Sunridge Gold defines sixth mineral resource at Asmara project ]]> http://www.proactiveinvestors.com/companies/news/95125/sunridge-gold-defines-sixth-mineral-resource-at-asmara-project-44179.html Sunridge Gold Corp. (CVE:SGC) has added more good news to an already auspicious month with the completion of a mineral resource estimate for the Kodadu target on the company’s Asmara project in Eritrea, the sixth such mineral resource defined by the Vancouver-based exploration and development company on the property.

The announcement regarding the NI43-101 and JORC compliant estimate comes exactly a week after the mining junior released a feasibility study for the project that succeeded in bringing initial production forward by almost a year.

The freshly-defined resource includes an inferred mineral resource of 990,000 tonnes with an average grade of 1.24 grams per tonne (g/t) of gold and 1.6 g/t of silver, with 39,000 ounces of gold and 51,000 ounces of silver contained metal in the near surface oxide.

As a bonus, the freshly-defined Kodadu resource is less than 25 km from the planned central operating facility, as part of a plan announced a week before Thursday’s statement, when the company published the results of a feasibility study on four of the established deposits at the project that concluded the construction of a single centralized processing plant near the Emba Derho deposit would be the optimum economic scenario.

With deposit and initial metallurgical results suggesting gold from the sixth Kodadu resource could be successfully recovered from the mineralized material by standard heap-leaching methods, it is fortuitous that the mooted facility is already set to include a gold heap-leaching facility, meaning mineralized material from the new resource could also be processed.

With the resource estimate based on 36 drill holes, further drilling is planned to be carried out in 2013, as the resource area is open for expansion.

Indeed, drilling has intercepted additional copper-zinc, gold, and silver mineralization below the oxide zone, which is not part of the resource estimate. Future exploration drill programs are to attempt to further define and expand this zone, with a program of expansion drilling, trenching and local mapping and sampling planned for this year.

The fifth prospect, Adi Rassi, is also to be the target of more exploration in the next phase of drilling.  

“We have always said that the Asmara Project is very prolific and now we have six deposits so far and probably more to go!” said president and CEO of Sunridge, Michael Hopley, in a statement on Thursday. 

“This initial resource at Kodadu, although modest in size at the moment, could well boost our gold production from the planned heap-leach operation in the early years of production at the Asmara Mine.

"This initial mineral resource estimate for Kodadu is just for the near surface gold oxide mineralization based on thirty six drill holes completed by Sunridge and management believes that further drilling will significantly expand and upgrade the mineralization.”

The NI 43-101 compliant feasibility study for the property released mid-May, which was based on just four of the deposits, outlined a net present value of US$837 million, at an 8 per cent discount rate pre-tax, or US$443 million after tax. This compares with a pre-tax net present value of $555 million in the prefeasibility study released in May of 2012.

The internal rate of return (IRR) for the project was pegged at 34 per cent pre tax, or 27 per cent after tax, with a payback period of 4.6 years post tax. 

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Thu, 23 May 2013 10:44:00 -0400 http://www.proactiveinvestors.com/companies/news/95125/sunridge-gold-defines-sixth-mineral-resource-at-asmara-project-44179.html
<![CDATA[News - Sunridge Gold succeeds in lowering capex at Asmara project, production fast-tracked by almost a year ]]> http://www.proactiveinvestors.com/companies/news/95015/sunridge-gold-succeeds-in-lowering-capex-at-asmara-project-production-fast-tracked-by-almost-a-year-43972.html Sunridge Gold Corp. (CVE:SGC)(OTCQX:SGCNF) has done exactly what it set out to do last year in releasing a feasibility study for its Asmara project in Eritrea that minimizes the capital exposure in a challenging time for Canadian juniors, with the company now having a plan to start initial production almost one year earlier than the preliminary report. 

The Canadian junior company told investors Thursday that the latest study, which shows the mining of all four advanced deposits that make up the project and the processing of the ore near the large Emba Derho deposit, shows "much greater value" than the prefeasibility study released last year. 

Indeed, as a result of the earlier than expected production and cash flow, combined with capital cost reductions, initial capex requirements to be financed have been lowered by over $130 million. Capex has been cut to $354 million from $489 million, CEO Michael Hopley said on a conference call this morning. 

When the mining license is granted for the project, the Government of Eritrea will have a 10 per cent carried interest, and ENAMCO, the Eritrean National Mining Corporation, will be purchasing an additional 30 per cent of the project, thereby responsible for one third of all capital and operating costs at the mine going forward. 

"We've eased concerns about junior companies with large capital cost projects with a three phase start-up plan, which both increases the value and minimizes the capital exposure, with the results exceeding our expectations."

Hopley said on the call that Sunridge produced the feasibility study, with the goals outlined last year, both on time and on budget. 

The NI 43-101 compliant report outlines a net present value of US$837 million, at an 8 per cent discount rate pre-tax, or US$443 million after tax. This compares with a pre-tax net present value of $555 million in the prefeasibility study released last May. 

The internal rate of return (IRR) for the project was pegged at 34 per cent pre tax, or 27 per cent after tax, with a payback period of 4.6 years post tax. 

The study, which outlines a three-phase staged mining plan, was based on base case metal prices of $3.25 per pound of copper - slightly lower than the price used in the preliminary report - $1.00 per pound of zinc, $1,400 per ounce of gold and $25.00 per ounce of silver. Using current metal prices, the post-tax IRR for Asmara was still seen at 26 per cent.

In a research note by London-based Ocean Equities today, the brokerage firm said the results of the bankable study were positive. "The post-tax IRR of 26% using today’s commodity prices which have softened considerably is a great result for Sunridge."

The mine, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. 

"In a little over two years, the Asmara Mine can start production and become a very important producer of copper, zinc, gold and silver for the benefit of Sunridge shareholders and the Eritrean people," said Hopley in the statement released Thursday with the figures. 

The construction period for the project - which is made up of the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit - is projected at one year. On site operating costs are seen at $29.42 per tonne through the life of the mine. 

The company said that the Emba Derho, Debarwa and Gupo deposits will be mined by open pit methods, while Adi Nefas will be mined underground. 

In the first phase of the three-stage mine plan, the high grade copper, or direct shipping ore, will be mined, and then transported 120 km to the port facility at Massawa for shipping to a smelter. Near surface gold and silver ore will also be mined from the Debarwa, Emba Derho and Gupo deposits and trucked to the same crushing facility near Emba Derho.

Full production will not be reached until the third phase, when primary copper and zinc ores from Debarwa, Adi Nefas and Emba Derho will be processed at a flotation plant at a rate of 4 million tonnes per year. Initial output is estimated for mid-2015. 

All four deposits included in the study, which was done by SENET, are located within a 30 minute drive on paved roads from the capital city of Asmara, nearby power, water and an international airport. The Red Sea port city of Massawa is also just 120 km east of Asmara. 

Sunridge said Thursday it will continue to work towards bringing the project into production as soon as possible by wrapping up the required environmental work, as well as applying for the mining license, after which it will be in a position to arrange for debt financing. 

Opportunities to further bolster the economics will also be looked into during detailed engineering, including the possibility to improve process rates with existing equipment. 

"With the results of the bankable feasibility study now in the public domain we would expect Sunridge to be exposed to a lot more interest from potential investors/off-takers as the company moves forward over the next twelve months," said Ocean Equities in its research report. 

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Thu, 16 May 2013 11:52:00 -0400 http://www.proactiveinvestors.com/companies/news/95015/sunridge-gold-succeeds-in-lowering-capex-at-asmara-project-production-fast-tracked-by-almost-a-year-43972.html
<![CDATA[News - Sunridge Gold says feasibility study for Asmara project will improve with staged start-up ]]> http://www.proactiveinvestors.com/companies/news/94188/sunridge-gold-says-feasibility-study-for-asmara-project-will-improve-with-staged-start-up-42563.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) says the feasibility study for its Asmara project in Eritrea is on schedule for completion in early May, and will include a staged start-up process over the first three years of the mine life in order to achieve early cash flow and minimize initial capital costs.

The company on Wednesday said that the study is focused on four of the five deposits that comprise Asmara and will outline a mining plan that integrates the four deposits being processed at a central concentrator near the large Emba Derho copper-zinc-gold-silver deposit. 

Asmara consists of the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit, as well as the fifth defined deposit, Adi Rassi, where the company late last year announced an initial resource estimate. 

A positive prefeasibility study (PFS) for the Asmara project, completed last May, considered four deposits - excluding Adi Rassi - being processed at a central mill, and showed a pre-tax net present value of $555 million at a 10 per cent discount rate. The IRR was 27 per cent, with an initial capital cost pegged at $489 million.  

The PFS also showed that the mine would produce a total of 365,000 tonnes of copper, 812,000 tonnes of zinc, 415,000 ounces of gold and 11 million ounces of silver over an approximate 15 year mine life. 

Sunridge said that the Asmara feasibility study will see improvements over the PFS mining plan, including a staged start-up.

Phase 1A will see the company mine by open-pit, crush, ship and sell high-grade copper and gold material as "direct shipping ore" material from the supergene copper zone at Debarwa over a 10 to 12 month period. This zone contains 116,000 tonnes at 16.0 per cent copper, 3.0 grams per tonne (g/t) gold, and 77.0 g/t silver.

Phase 1B will focus in gold production and will see Sunridge use its gold heap-leach process plant at Emba Derho to recover gold and silver from the near surface “gold caps” at  Emba Derho and Debarwa, as well as the gold-only Gupo deposit over a period of 36 to 48 months. 

The Canadian-listed junior company said that phase 2 will focus on copper production, where it expects to mine and process 2.4 million tonnes of high-grade copper supergene ore (less the DSO zone) at a rate of 5,500 tonnes per day – or 2 million tonnes per year - from Debarwa and Emba Derho for 15 months, at the same time as phase 1B is in production.

Finally, phase 3 will include both copper and zinc production. Sunridge said it will mine and process primary copper and zinc ore at full production from Emba Derho, Debarwa and Adi Nefas at a rate of 11,000 tonnes per day, or 4 million tonnes per year, for 13 to 15 years. 

Meanwhile, the company said negotiations are ongoing for the Eritrean National Mining Corporation’s (ENAMCO) purchase of a 30-per-cent working interest in the Asmara project. On completion of the purchase, ENAMCO will have a 10-per-cent carried interest and a 30-per-cent working interest and will be responsible for funding one-third of the costs of all operations conducted on the project, which may include a portion of the study. 

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Wed, 10 Apr 2013 09:35:00 -0400 http://www.proactiveinvestors.com/companies/news/94188/sunridge-gold-says-feasibility-study-for-asmara-project-will-improve-with-staged-start-up-42563.html
<![CDATA[News - Sunridge Gold's Kodadu work has potential to add value to Asmara project, says broker ]]> http://www.proactiveinvestors.com/companies/news/93503/sunridge-golds-kodadu-work-has-potential-to-add-value-to-asmara-project-says-broker-41445.html

Ocean Equities says that Sunridge Gold's (CVE:SGC) (OTCQX:SGCNF) drilling at the Kodadu target, part of the Asmara project in Eritrea, has the potential to add value to the property and shows the area remains "highly prospective for new gold and base metal targets". 

The junior explorer reported yesterday what it called "significant gold mineralization" in the oxide gold cap of its Kodadu target. 

The company reported the results from all 21 drill holes of a recently completed reverse circulation drilling campaign. Along with the signficant gold find in the oxide gold cap of the Kodadu gossan, Sunridge said it also defined more gold in a nearby shear zone. 

Notable holes included 51 metres at 1.71 grams per tonne (g/t) gold in hole KD-002-R,  and 31 metres of 1.77 g/t gold in hole KD-003-R. 

Sunridge's aim is to rapidly define a resource at the target that could be mined as feed to a central gold plant near its large Emba Derho deposit - one of the established deposits of the Asmara project. Kodadu is located around 25 kilometres south of Emba. 

"The [Kodadu] drill program has successfully intercepted significant near surface gold mineralization and has provided sufficient information for the company to begin work on an initial resource estimate, demonstrating the potential of the Asmara Project," said Ocean Equities in its research note on Friday. 

Indeed, the Canadian listed junior company says it has now commissioned Fladgate Exploration Consulting to complete an initial resource estimate on the gold oxide zones at Kodadu. Once completed, Kodadu will be the sixth resource on the Asmara project. 

Sunridge also continues to proceed with its scheduled plans for 2013, including the conclusion of negotiations with ENAMCO regarding the purchase of an additional 30% of the Asmara project.  

The main focus, however, will be the work on finishing a feasibility study on the Asmara project, on track for April this year, after which the application for a mining license and permitting will follow, along with the social and environmental impact assessment.

As of now, the Asmara project consists of the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit, as well as the fifth defined deposit, Adi Rassi, where the company late last year announced an initial resource estimate.  

The results of a preliminary feasibility study at the Asmara project last May that considered four deposits, excluding Kodadu and Adi Rassi, being processed at a central mill, showed a pre-tax net present value of $555 million at a 10 per cent discount rate. The IRR was 27 percent, with an initial capital cost pegged at $489 million. 

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Fri, 08 Mar 2013 10:55:00 -0500 http://www.proactiveinvestors.com/companies/news/93503/sunridge-golds-kodadu-work-has-potential-to-add-value-to-asmara-project-says-broker-41445.html
<![CDATA[News - Sunridge Gold's Kodadu drill program proves successful for start of initial resource work ]]> http://www.proactiveinvestors.com/companies/news/93468/sunridge-golds-kodadu-drill-program-proves-successful-for-start-of-initial-resource-work-41385.html Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) shares rose sharply on Thursday after the junior explorer reported what it called "significant gold mineralization" in the oxide gold cap of its Kodadu target, which forms part of its Asmara project in Eritrea. 

The company reported the results from all 21 drill holes of a recently completed reverse circulation drilling campaign. Along with the signficant gold find in the oxide gold cap of the Kodadu gossan, Sunridge said it also defined more gold in a nearby shear zone. 

Notable holes include 51 metres at 1.71 grams per tonne (g/t) gold in hole KD-002-R,  and 31 metres of 1.77 g/t gold in hole KD-003-R. 

The results represent a new gold discovery for the company as previous drilling in the area targeted deeper volcanogenic-massive-sulphide (VMS) base metal mineralization. 

The Canadian listed junior company has now commissioned Fladgate Exploration Consulting to complete an initial resource estimate on the gold oxide zones at Kodadu. 

Sunridge's aim is to rapidly define a resource at the target that could be mined as feed to a central gold plant near its large Emba Derho deposit - one of the four established deposits of the Asmara project. Kodadu is located around 25 kilometres south of Emba. 

"The drill program at Kodadu has successfully intercepted significant near surface gold mineralization and has provided enough information to begin work on an initial resource estimate" said president and CEO, Michael Hopley. 

"This drilling program has again demonstrated the prolific potential of the Asmara project."

As of now, the Asmara project consists of the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit, as well as the fifth defined deposit, Adi Rassi, where the company late last year announced an initial resource estimate.  

The results of a preliminary feasibility study at the Asmara project last May that considered four deposits, excluding Kodadu and Adi Rassi, being processed at a central mill, showed a pre-tax net present value of $555 million at a 10 per cent discount rate. The IRR was 27 percent, with an initial capital cost pegged at $489 million. 

Sunridge is now working on finishing a feasibility study on the Asmara project, on track for April this year, after which the application for a mining license and permitting will follow, along with the social and environmental impact assessment.

At Kodadu, the company said that several gossans have been found through surface mapping that trend north-northeast for over a 1.2 kilometre strike length, with an average width of about 15 metres. 

Sunridge shares popped over 8 percent this morning, to trade at 20 cents. 

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Thu, 07 Mar 2013 10:58:00 -0500 http://www.proactiveinvestors.com/companies/news/93468/sunridge-golds-kodadu-drill-program-proves-successful-for-start-of-initial-resource-work-41385.html
<![CDATA[News - Sunridge Gold reveals "encouraging" channel samples at Kodadu, drill results expected next month ]]> http://www.proactiveinvestors.com/companies/news/93110/sunridge-gold-reveals-encouraging-channel-samples-at-kodadu-drill-results-expected-next-month-40727.html

Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has unveiled what it calls "encouraging" initial results from channel samples at its Kodadu target on its Asmara project in Eritrea. 

The company also completed the reverse circulation drilling program it announced at the target in January, with results from this expected next month. A total of 22 holes targeting the oxide gold cap of the Kodadu volcanogenic-massive sulphide (VMS) area and a nearby gold shear zone were drilled. 

The aim of its work at Kodadu is to quickly define a resource that could potentially be mined as feed to a central gold plant at Emba Derho - one of the four established deposits of the Asmara project. Kodadu is located around 25 kilometres south of Emba.

As of now, the Asmara project consists of the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits and the Gupo gold deposit - all located within 40 kilometres of the capital city of Asmara. 

At the Kodadu target, notable channel sample results included 11 metres at 1.46 grams per tonne (g/t) gold, 22.5 metres at 0.69 g/t gold and 7.00 metres at 1.11 g/t gold. 

These results were from 14 channels cut across the surface of the target over a 1.2 km strike length, as well as over part of the gold mineralized shear zone nearby. 

Sunridge said in its statement Tuesday that "several gossans" have been identified by surface mapping that trend north-northeast for over 1.2 kilometre strike length, and they have an average width of about 10 metres.

In addition to the Kodadu VMS target, the company added that gold mineralization has also been found in a one kilometre shear zone running parallel and about 100 metres west of the Kodadu gossans. 

Geological mapping has shown the zone to be around 30 metres wide, the company says, and historic results from trenches sampled by a previous operator were reported as 3.85 g/t over 50 metres and 11.87 g/t over 8 metres. 

The results of a preliminary feasibility study at the Asmara project in May that considered four deposits, excluding Kodadu, being processed at a central mill showed a pre-tax net present value of $555 million at a 10 per cent discount rate, and an internal rate of return of 27 per cent, with an initial capital cost pegged at $489 million. 

Sunridge is now working on finishing a feasibility study on the Asmara project, on track for April this year, after which the application for a mining license and permitting will follow, along with the social and environmental impact assessment.

The junior gold explorer also late last year completed its initial resource estimate for the Adi Rassi copper-gold deposit - the fifth gold deposit defined on its Asmara project. The new resource totalled 15.77 million tonnes at 0.54% copper and 0.33 grams per tonne (g/t) gold containing 85,158 tonnes of copper and 167,000 ounces of gold in the inferred category. 

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Tue, 19 Feb 2013 09:54:00 -0500 http://www.proactiveinvestors.com/companies/news/93110/sunridge-gold-reveals-encouraging-channel-samples-at-kodadu-drill-results-expected-next-month-40727.html