Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC: TSX.V/SGCNF: OTCQX) is pleased to announce that it has executed a binding term sheet (the “Term Sheet”) with the Eritrea National Mining Corporation (“ENAMCO”) regarding ENAMCO’s participation in the Company’s Asmara Project in Eritrea.
As first announced in August 2012, ENAMCO has exercised its right to acquire its maximum 30% participating interest in the Asmara Project in addition to ENAMCO’s existing right to be issued a 10% non-assessable interest that will be carried to production by the participating partners.
ENAMCO has now agreed to pay Sunridge US$18.33 million (the “Purchase Price”), bearing interest, payable in stages prior to production for the purchase of the 30% participating interest. Also, on signing of the shareholder agreement (the “Shareholders Agreement”) ENAMCO will pay Sunridge one-third of all project development costs back-dated to July 4, 2012, the date they exercised the right to purchase, which amount is currently estimated to be approximately US$4 million. In addition, ENAMCO will contribute one-third of the funding of ongoing expenditure on the project, including exploration and development.
“Sunridge has passed many milestones with the development of the Asmara Project over the last few years and this is the most significant milestone to date. We are very pleased that we have reached an agreement with the Eritrean Government and look forward to working cooperatively with ENAMCO to rapidly move the Asmara Project into production as soon as possible for the mutual benefit of Sunridge and the people of Eritrea,” states Michael Hopley, President and CEO of Sunridge.
The valuation date for ENAMCO’s interest is July 4, 2012 and therefore it is largely based on the results of Asmara Project prefeasibility study which were published in May 2012. In May 2013, Sunridge completed a full feasibility study on the Asmara Project which showed a significantly higher value.