|Mon Feb 13, 2006|
Lundin Mining Financing Complete
|Sunridge Gold Corp. (SGC/TSX.V) is pleased to announce that the private placement financing by Lundin Mining Corporation ("Lundin Mining") announced on January 16, 2006 closed on February 10, 2006. The Company has received proceeds of $5,229,000 and has issued 3,150,000 common shares and 3,150,000 non-transferable common share purchase warrants (the "Warrants") to Lundin Mining.|
Sunridge is pleased to welcome Karl-Axel Waplan, the President and CEO of Lundin Mining as a director of Sunridge. Mr. Waplan has been employed by Lundin Mining since 2004 and he has a M.S. in Mechanical Engineering from the Royal Institute of Technology, Stockholm, Sweden. To facilitate Mr. Waplan's appointment, Don Halliday has stepped down as a director but continues in his role as Vice President Corporate Development of Sunridge.
For its role in facilitating this transaction Salman Partners Inc. was paid a finder's fee of 189,000 common shares and 189,000 Warrants. If Lundin Mining exercises any of its Warrants prior to February 9, 2007 Salman Partners will be paid a finder's fee of 6% of the Lundin Mining warrant proceeds in cash or shares priced at the time of issue.
All Warrants entitle the holder to purchase, at any time until February 9, 2008 one common share of the Company at a price of $2.07. The common shares issued, and any common shares issued pursuant to the exercise of Warrants prior to June 11, 2006 are restricted from trading until June 11, 2006.
The net proceeds of the private placement will be used for the advancement of Sunridge Gold's projects in Eritrea and for general corporate purposes.
Lundin Mining is a Canadian mining and exploration company with a primary focus in Europe. The main asset is the Zinkgruvan mine, located about 2000 kilometres southwest of Stockholm, Sweden. The mine has been producing zinc, lead and silver on a continuous basis since 1857. Zinkgruvan has consistently ranked in the lowest cost quartile among zinc mines in the world. Lundin Mining also owns the Galmoy zinc mine in Ireland and the Storliden zinc/copper mine in the Skellefte District of northern Sweden. The Company also holds a large copper/gold exploration project in the Norrbotten Mining District of northern Sweden.
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 high-grade gold/copper/zinc VMS projects of the Asmara Joint Venture in Eritrea. The Company is continuing to be the sole financial contributor to the JV to earn a 70% interest. The Company 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.
SUNRIDGE GOLD CORP.
For further information contact:
Michael Hopley, President and Chief Executive Officer
Tel: 604-899-1505 (direct)
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.