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.