Sunridge Gold raises $5.75 mln for Eritrea project
11:20 am by Deborah Bacal
Sunridge Gold Corp. (CVE:SGC)(OTCQX:SGCNF) has closed two concurrent financings to raise a total of $5.75 million, the company said Tuesday.
It raised $3.66 million through a brokered financing by Tempest Capital Corp, and another $2.09 million via a concurrent non-brokered placement.
A total of 30.26 million units were issued, at a price of 19 cents apiece. Each unit was made up of one common share and one share purchase warrant, with every warrant good for one additional share at a price of 35 cents each until October 18, 2017.
The company said it is planning to use the net proceeds of the private placement to develop its Asmara project in Eritrea further, as well as for general working capital.
Earlier this month, Sunridge boosted the size of its financing for the second time, originally planning to raise up to $3 million. Sunridge is moving ever closer to production with the Vancouver-based exploration and development company very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making notable progress.
The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust. In recent days, the company has undertaken a social and environmental impact assessment due for completion this month, in order to make application to the government for a mining license.
In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price the government organization will pay to purchase 30 per cent of the project from Sunridge. Discussions with potential debt financing lenders have also begun, as has an independent due diligence review. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.
The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.
Separately, the company also said Tuesday that it settled outstanding debts with "arm's length parties" in the amount of $830,128 by issuing 4.37 million units concurrent with the closing of the private placement.
http://www.proactiveinvestors.com/companies/news/49136/sunridge-gold-raises-575-mln-for-eritrea-project-49136.html
http://www.sunridgegold.com/s/PressReleases.asp?ReportID=608262
Received on Tue Oct 22 2013 - 12:18:20 EDT