VANCOUVER, British Columbia--(BUSINESS WIRE)--
Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC: TSX.V/SGCNF:
OTCQX) is pleased to announce that the Asmara Mining Share Company
(“AMSC”) has recently been formed in Eritrea. AMSC is the operating
entity which will own and operate the Asmara copper-zinc-gold mine in
Eritrea. The Asmara Project, equipment and all Eritrean employees are
now being transferred from Sunridge Gold Eritrea to AMSC.
Sunridge President and CEO Michael Hopley said, “We are very happy to
have completed the formation of AMSC and formalized our partnership with
ENAMCO on the Asmara Project. 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.”
AMSC is owned 60% by Sunridge and 40% by Eritrean National Mining
Corporation (“ENAMCO”) (30% participating and 10% free carried interest)
and is governed by a Shareholders’ Agreement. AMSC has a board of
directors of five, comprising three from Sunridge and two from ENAMCO.
Michael Hopley, President and CEO of Sunridge has been appointed
Chairman of AMSC. All future project development or exploration costs
will be shared two-thirds Sunridge and one-third ENAMCO. The Government
of Eritrea established ENAMCO in 2006 for the purpose of holding
government ownership interests and to promote the development of the
mining industry in Eritrea.
A summary of key facts related to Sunridge, the Asmara Project and the
formation of AMSC are as follows:
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ENAMCO is paying Sunridge US$18.33 million for its 30% participating
interest in the Asmara Project; US$2 million was received in July,
another US$1 million plus interest has just been received and a
further US$2 million is scheduled to be received before the end of
November 2014;
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Pursuant to the Shareholders’ Agreement, the parties have agreed that
ENAMCO will contribute one-third of the expenditures on the Asmara
Project retroactive to July 4, 2012, the date ENAMCO delivered its
notice of intention to exercise its option. Based on Sunridge’s
expenditure on the project during that period ENAMCO has agreed to
fund the next US$6 million of project expenses through AMSC;
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After ENAMCO has funded the next US$6 million of project expenses
Sunridge will be responsible for 66⅔% and ENAMCO 33⅓% of all future
project funding; and
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With the establishment of AMSC, Sunridge and ENAMCO are jointly
working on acquiring the mining license for the Asmara Project, which
is expected early next year.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the
acquisition, exploration, discovery and development of base and precious
metal projects on the Asmara Project in Eritrea. Sunridge currently has
approximately 210 million shares outstanding and trades on the TSX
Venture Exchange under the symbol SGC. For additional information on the
Company and its projects please view the slide show on our website at www.sunridgegold.com
or call Greg Davis at the number listed below.
SUNRIDGE GOLD CORP.
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“Michael Hopley”
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For further information contact:
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Michael Hopley, President and Chief Executive Officer
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Greg Davis, VP Business Development
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Email: greg@sunridgegold.com
Tel: 604-688-1263 (direct)
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Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based
on the Company’s current expectations and estimates. Forward-looking
statements are frequently characterized by words such as “plan”,
“expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”,
“suggest”, “indicate” and other similar words or statements that certain
events or conditions “may” or “will” occur. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ materially
from estimated or anticipated events or results implied or expressed in
such forward-looking statements. Forward looking statements may include
the timing and success of any application for a mining license,
permitting or of debt financing. Risk and uncertain factors
include, among others: the actual results of current exploration
activities; conclusions of economic evaluations; changes in project
parameters as plans to continue to be refined; possible variations in
ore grade or recovery rates; accidents, labour disputes and other risks
of the mining industry; delays in obtaining governmental approvals, a
mining license, or debt financing, uncertainties in negotiating
commercial arrangements with government entities; and fluctuations in
metal prices. There may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. Any
forward-looking statement speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or
results or otherwise. Forward-looking statements are not guarantees of
future performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty therein.