Sunridge Gold Corp.: Lundin Mining Exercises Warrants and Sunridge Triggers $0.90 Warrants
Posted on: Tuesday, 22 August 2006, 09:00 CDT
Sunridge Gold Corp. (TSX VENTURE: SGC) is pleased to announce that Lundin Mining Corporation (Lundin Mining) has notified management of Sunridge that it will exercise 3,150,000 share purchase warrants at a price of $2.07 for gross proceeds of $6,520,500. These two year warrants were issued as part of the units purchased in a private placement by Lundin Mining on February 13, 2006. Lundin Mining has elected to exercise these warrants early in order to fund the ongoing exploration of the Asmara Project by Sunridge. Immediately after this exercise Lundin Mining will hold 17.3 per cent of the outstanding shares of Sunridge. Salman Partners will be paid a finders' fee of 6% of the Lundin Mining warrant proceeds in shares, subject to regulatory approval.
Sunridge hereby elects to exercise its right to accelerate the expiry date of the $0.90 warrants issued as part of the units purchased in a private placement on October 4, 2005. Each warrant holder now has thirty days from the date of this news release, until September 21, 2006 to exercise their warrant under the accelerated expiry date. This warrant will be void and of no value after 4:00 PM (Vancouver time) on September 21, 2006. There are currently 2,317,103 warrants outstanding.
The funds from the exercise of all warrants combined with existing working capital will be used to continue the aggressive exploration and development programs at the Asmara Project in Eritrea. Currently within the Asmara Project there are two high-grade volcanogenic massive sulphide ("VMS") projects, Debarwa and Adi Nefas, one gold deposit, Gupo, and the new potentially large VMS discovery called Emba Derho. There are also several high priority drill targets.
There are three drill rigs operating on the Asmara Project, one at Debarwa, one at the new Adi Nefas south VMS target and one at Emba Derho. Scoping studies are underway at Debarwa and Adi Nefas and are scheduled for completion in October 2006. The objective of these studies is to determine the potential economics of these projects and the possibility of fast-tracking them to final feasibility and production. The Asmara Project has excellent infrastructure with paved roads, power international airports and water.
Sunridge Gold Corp. is a mineral exploration company focused on the acquisition, exploration, discovery and development of precious and base metal projects. The Company is currently conducting exploration on the Asmara Joint Venture Project in Eritrea. The Company has 36.5 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 Don Halliday at the number listed below.
SUNRIDGE GOLD CORP.
Michael Hopley, President and Chief Executive Officer
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Sunridge Gold Corp. Don Halliday Direct: (604) 899-1505 oledemeida@sunridgegold.comwww.sunridgegold.com
SOURCE: Sunridge Gold Corp.
Source: MARKET WIRE
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