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.