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Grandich Client Sunridge Gold

Sunridge has issued two fairly interesting news releases since market close on Friday.

Number 1 - Sunridge announced that it will not be closing the remainder of the private financing with Shanghai Richstone. A first tranche of the financing was closed on July 5th for $2,000,000, however several deadlines were missed by Shanghai Richstone for the remainder and Sunridge decided not to extend any further. The company has advised me that they needed certainty that they would be able to fund the current Feasibility Study on the Asamara Project and it is reviewing other available options to finance.

Number 2 – Sunride announced this morning that the Eritrean government through the Eritrean National Mining Corporation (“ENAMCO”) has advised Sunridge that it wishes to exercise its right to acquire a 30% paid participating interest in Sunridge’s Asmara Project. This is a key step for Sunridge it completes the Feasibility Study and moves the Asmara Project one step closer to production. I also suspect having this news made it easy to pass on the previously announced financing as having the government now as a partner changes the playing field for the better.

The company’s progress on the corporate front is exactly opposite of the direction of its share price. It’s my fondest hope that going forward that they meet much closer to the middle.

In the 2 previous examples where ENAMCO choose to acquire their 30% paid interest, it was a win-win situation for all parties. Notably, Nevsun was paid in excess of $250 million for a 30% interest in the Bisha Project, which has now been in production for over 1 and a half years.

Obviously, having the government as a partner will assist greatly during the permitting stage which begins once a Feasibility study is completed.

Posted in A Grandich Company Base Metals Canadian Stocks Copper Exploration Shares Gold Mining Shares Precious Metals Silver Sunridge Gold by Peter Grandich.