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.