From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Fri Sep 04 2009 - 18:59:09 EDT
Sunridge Gold signs up Antofagasta as partner on Eritrea project
By: Liezel Hill
5th September 2009
Updated 30 minutes agoTEXT SIZE TORONTO (miningweekly.com) -
Vancouver-based Sunridge Gold has received a vote of confidence from
Antofagasta Minerals, which will fund $10-million of exploration work
over a five-year period, to earn a 60% interest in part of the company's
Asmara project, in Eritrea.
The areas that Antofagasta will earn into exclude the four defined
deposits that Sunridge has outlined to date, but cover about 585 ha of
exploration property that is considered to have the potential for large
new discoveries, the firm said.
Sunridge will be the operator of the exploration programme until a total
of $7-million has been funded by Antofagasta, at which point Antofagasta
can opt to become the operator.
After the $10-million has been spent, Antofagasta can acquire a 60% in
the exploration areas, and will also have a right to complete a
feasibility study on any project in the exploration areas to earn
another 15%.
Antofagasta will also buy Sunridge shares in a $5-million private
placement, which will make it Sunridge's biggest shareholder, with about
18% of the company.
"We are very happy to be forming this strategic alliance with one of the
leading copper producers in the world," Sunridge CEO Michael Hopley
commented.
"Having concluded site visits, it is obvious that Antofagasta shares our
belief that the Asmara project has the potential for the discovery of
other large base metal deposits"
Meanwhile, Sunridge will use the proceeds of the placement to continue
exploration and development of the four existing deposits towards final
feasibility and eventual production.
Another Canadian firm, Nevsun Resources, recently arranged $235-million
in debt to fund its own more advanced Eritrean project, the Bisha mine.
Nevsun CEO Cliff Davis on Friday welcomed the news of Antofagasta's deal
with Sunridge.
"This confirms once again the attractiveness of Eritrea as a country to
do business," he said.
"All of this points to further international acceptance of Eritrea for
investment."
Sunridge shares leapt 29% on Friday, to C$0,71 apiece by 15:58 in
Toronto.
Nevsun gained 0,9%, to C$2,20 a share.
Edited by: Liezel Hill
http://www.miningweekly.com/article/sunridge-gold-signs-up-antofagasta-a
s-partner-on-eritrea-project-2009-09-05
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