Sunridge Gold Announces Start of Debt Financing Due Diligence Review of Asmara Project, Eritrea
VANCOUVER, British Columbia--(BUSINESS WIRE)-- Sunridge Gold Corp. (SGC:TSX.V/SGCNF:OTCQX) is pleased to announce that the international mining industry consulting company Micon International Limited ("Micon") has been selected to complete an independent "due diligence" review of the Asmara Project, Eritrea on behalf of the potential financing providers to the project. Endeavour Financial Limited (Cayman) ("Endeavour") will lead this process until the lender group is formed. Endeavour provides financial consulting services to Sunridge with respect to debt financing requirements for the Asmara Project and they have unique experience in Eritrea having previously advised Nevsun Resources Limited. Micon's review will cover all aspects of the project including mineral Resources/Reserves, metallurgy, processing plant and infrastructure, mine design, economic analysis, and environmental and social engagement programs. Micon's team has already been to the site and will conduct its review of the feasibility study during the third quarter of this year.
"Micon's due diligence review of the Asmara Project for the banks is an important step towards being able to debt finance the Asmara Mine into production" says Michael Hopley, President and CEO.
Sunridge recently announced the completion and positive results of an independent feasibility study by lead engineer SENET (Pty) Ltd. on the Asmara Project. The study demonstrates that the mining of all four advanced deposits that make up the Asmara Project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) and processing of the ore near the large Emba Derho deposit is economically robust with a Net Present Value ("NPV") of $692 million (at 10% discount rate). The study outlines a three-phase staged start-up mining plan which would initiate production in 2015 starting with a gold cap and moving into high grade copper then zinc. This staged approach allows for earlier cash-flow and, combined with capital cost reductions, reduces the initial capital requirements to be financed by over $130 million when compared to the prefeasibility study which was published in May 2012.
The Asmara feasibility study results were reviewed by SENET under the direction of Study Manager, David Chambers, an Independent Qualified Person within the meaning of NI 43-101.
Michael Hopley, President and CEO of Sunridge Gold Corp. is the Company's Qualified Person responsible for the contents of this press release and has reviewed the information in the release and confirmed that it is consistent with that provided by the independent Qualified Person responsible for the Study.
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 175 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 numbers listed below.
SUNRIDGE GOLD CORP.
For further information contact:
Michael Hopley, President and Chief Executive Officer
Greg Davis, VP Business Development
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 negotiating a shareholders' agreement with ENAMCO and 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.
Sunridge Gold Corp.
Greg Davis, 604-688-1263
VP Business Development
KEYWORDS: United States North America Canada Washington
The article Sunridge Gold Announces Start of Debt Financing Due Diligence Review of Asmara Project, Eritrea originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.