http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=154648&sn=Detail&pid=102055
Sunridge Gold Closes First Tranche of $9.25 Million Private Placement
Friday , 06 Jul 2012 Sunridge Gold Corp.
Sunridge Gold Corp. (SGC:TSX.V/SGCNF:OTCQX) is pleased to announce that, as planned, it has closed the first tranche of a $9,250,000 private placement (the "Private Placement") with Shanghai Richstone Investment Group Ltd. ("Richstone"). The Company issued 5,405,405 common shares (each a "Share") and 864,864 common share purchase warrants (each a "Warrant") to raise gross proceeds of $2,000,000 in the first tranche closing. Subject to final regulatory approval, the remainder of this Private Placement is expected to close in late July 2012 upon receipt of Chinese foreign exchange approvals. Each Warrant will entitle Richstone to purchase one common share of the Company at an exercise price of $0.55 for a term of one year.
The Company intends to use the proceeds of the Private Placement for completion of the feasibility study on the Asmara Project, Eritrea and other expenditures related to the project as well as general corporate purposes.
Richstone is a private Chinese energy and mining company based in Beijing with oil and mining production in China in addition to interests in oil recovery technology, metal trading, banking and strong ties to an influential Chinese investor base. At present, its total assets exceed US$400 million and it has annual after tax income of over $80 million.
All securities distributed pursuant to the Private Placement will be subject to a hold period of four months following closing in accordance with applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws. The hold period in respect of the Shares and Warrants issued under the first tranche of the Private Placement expires on November 6, 2012.
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Shares or Warrants (the "Securities") in the United States or to, or for the account or benefit of, any U.S. person. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any U.S. person unless an exemption from such registration requirements is available. "United States" and "U.S. person" are as defined in Regulation S under the U.S. Securities Act.
About Sunridge:
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal deposits on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge currently has approximately 117 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 atwww.sunridgegold.com or call Greg Davis at the numbers listed below.
SUNRIDGE GOLD CORP.
"Michael Hopley"
Michael Hopley, President and Chief Executive Officer
For further information contact:
Greg Davis, VP Business Development
Email: greg_at_sunridgegold.com
Tel: 604-688-1263 (direct)
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. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; 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.
Received on Fri Jul 06 2012 - 09:46:46 EDT
