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.