Sunridge Gold Corp. (SGC:TSX.V/SGCNF:OTCQX) (the “Company”) reports that it will not be closing a second tranche of the non-brokered private placement with Shanghai Richstone Investment Group Ltd. (“Richstone”), the terms of which were outlined in the Company’s news release dated June 7, 2012. On July 5, 2012, the Company reported that the first tranche of the placement was closed and that 5,405,405 common shares and 864,864 common share purchase warrants were issued to raise gross proceeds of $2,000,000.
Pursuant to the terms of the subscription agreement between the Company and Richstone, the second and final tranche of the private placement was to close by July 20, 2012. Richstone advised that it was not able to obtain the necessary approval for the placement from the State Administration of Foreign Exchange of the People’s Republic of China by July 20, 2012. Sunridge initially provided a notice to Richstone stating that Sunridge would not seek the approval of the TSX Venture Exchange (the “TSXV”) for an extended deadline, and subsequently rescinded such notice after discussions with Richstone. Sunridge proceeded to obtain the approval of the TSXV for an extended closing deadline of August 15, 2012 and notified Richstone of this. Richstone did not provide the remainder of the private placement funds by the August 15, 2012 deadline.
Sunridge is currently examining other financing options to fund the completion of the feasibility study on the Asmara Project.
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 has approximately 123 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. “Michael Hopley” Michael Hopley, President and Chief Executive Officer