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From: B-Haile (eritrea.lave@comhem.se)
Date: Wed Nov 17 2010 - 17:34:41 EST
Press Release
Nov. 17, 2010, 4:36 p.m. EST
Sunridge Gold Closes $16.65 Million Financing
VANCOUVER, BRITISH COLUMBIA, Nov 17, 2010 (MARKETWIRE via COMTEX) -- Sunridge Gold Corp. /quotes/comstock/11v!e:sgc (CA:SGC 1.20, 0.00, 0.00%) (the "Company") has issued 18,500,000 common shares and 18,500,000 common share purchase warrants ("Warrants") to raise gross proceeds of $16,650,000 pursuant to a non-brokered private placement announced October 14, 2010.
Each Warrant entitles the holder thereof to purchase one common share in the capital of the Company at a price of $1.40 until November 17, 2015.
The common shares issued, and any common shares issued pursuant to the exercise of Warrants prior to March 18, 2011, are restricted from trading until March 18, 2011.
The Company paid finder's fees to persons who introduced it to private placement investors consisting of $886,000 cash and 918,000 common shares and 918,000 Warrants.
The proceeds of the financings will be used to fund the Company's work programs at the Asmara Project in Eritrea, exploration work at the Besakoa Project in Madagascar and for general corporate purposes. Work programs at the Asmara Project in Eritrea will include a full feasibility study for the Debarwa high-grade copper-gold deposit, a pre-feasibility study for the combined Emba Derho, Adi Nefas, Gupo and Debarwa deposits and for drill programs at the Gupo and Medrizien gold projects. In addition, work programs will continue in Madagascar to follow up a successful initial exploration program that has identified the Besakoa Project as a potential new VMS district. (See News Release Nov. 4, 2010)
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT SUNRIDGE:
Sunridge is a mineral exploration and development company focused on the exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge has 117 million shares outstanding with $28.2 million in cash. Sunridge 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 Don Halliday or Greg Davis at the numbers listed below.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer
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 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 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.
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 news release.
Contacts:
Sunridge Gold Corp.
Don Halliday
Executive Vice President
604-899-1505 (direct)
donh@sunridgegold.com
Sunridge Gold Corp.
Greg Davis
VP Business Development
604-688-1263 (direct)
greg@sunridgegold.com
www.sunridgegold.com
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