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Sunridge Gold Signs Shareholder's Agreement with Enamco
Monday , 30 Jun 2014 Sunridge Gold Corp.
Sunridge Gold Corp. (the "Company" or "Sunridge") (SGC: TSX.V/SGCNF: OTCQX)
is pleased to announce that Sunridge and the Eritrean National Mining
Corporation ("ENAMCO") have executed a shareholders' agreement (the
"Shareholders' Agreement") to organize and operate the Asmara Mining Share
Company ("AMSCo") the operating entity which will own and operate the
Asmara copper-zinc-gold mining project (the "Property") in Eritrea.
AMSCo will be owned 60% by Sunridge and 40% by ENAMCO (30% participating
and 10% free carried interest) and will have a board of directors of five,
comprising three from Sunridge and two from ENAMCO. All future project
development or exploration costs will be shared two-thirds Sunridge and
one-third ENAMCO.
Michael Hopley, President and CEO of Sunridge said "Signing the AMSCo
shareholder agreement is another major milestone that we have now achieved
in the development of the Asmara mine. The payments from ENAMCO to Sunridge
totaling US$5 million over the next few months, together with the relief
from having to fund our in-country programs through AMSCo for the next US$6
million of expenditures, will provide Sunridge with a healthy treasury. We
are very pleased to have ENAMCO as our partner and look forward to a
continued close working relationship."
On February 4, 2014, Sunridge announced that it had signed a binding term
sheet for the purchase of the 30% participating interest pursuant to which
ENAMCO agreed to pay Sunridge US$18.33 million in stages prior to
production. Pursuant to the Shareholders' Agreement, ENAMCO has now agreed
to pay the first US$5 million of the purchase price on the following
accelerated schedule:
US$2 million to be paid immediately on signing the Shareholders' Agreement
US$1 million by September 30, 2014
US$1 million by October 30, 2014
US $1 million by November 30, 2014
The balance of the US$13.33 million will be paid in installments beginning
upon signing a finance agreement that secures a significant portion of the
financing required to develop the Property (the "Financing Agreement");
US$6 million to be paid upon on signing the Financing Agreement
US$4 million 6 months after signing the Financing Agreement
US$3.3 million 12 months after signing the Financing Agreement
In the Shareholders' Agreement, the parties have agreed that ENAMCO will
contribute one-third of the funding of expenditures on the project,
including exploration and development retroactive to July 4, 2012, the date
ENAMCO delivered its notice of intention to exercise its full purchase
option. Since then, Sunridge has contributed approximately US$12 million to
the project and now ENAMCO has agreed to fund the next approximately US$6
million to AMSCo for their portion of retroactive contributions to the
project. The terms of the Shareholders' Agreement also contain all the
normal provisions regarding the governance and operations of AMSCo.
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.
"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. Forward
looking statements may include the timing and success of any application
for a mining license or of debt financing and completion of definitive
documentation with ENAMCO. 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.
Received on Mon Jun 30 2014 - 08:07:41 EDT