| Fri Oct 2, 2009 Sunridge Gold Closes Private Placement And Definitive Exploration Agreement With New Partner Antofagasta Minerals S.A. | |||||||||||||
| Sunridge Gold Corp ("Sunridge" or the "Company") is pleased to announce that it has closed the private placement with Sierra Gorda Investment Company Limited ("Sierra Gorda"), a subsidiary of parent company Antofagasta PLC and finalized the exploration agreement with Antofagasta Minerals S.A. (Antofagasta and its subsidiaries referred to in this press release as "Antofagasta") as announced on September 4, 2009. The Company issued Antofagasta 13,588,750 common shares at a price of C$0.40 for gross proceeds of US$5,000,000. The common shares issued are subject to a four month hold period until February 2, 2010. Antofagasta now owns approximately 18 % of the issued shares of Sunridge. As part of the private placement and the exploration agreement, Antofagasta will be entitled to appoint one member to the Sunridge Board of Directors and will have certain rights to participate in future financings to maintain their share interest in the Company. The Company paid a finder's fee of $135,888 in connection with the private placement. Antofagasta and the Company executed an exploration agreement that replaces the MOU signed on September 3, 2009. The terms are as described in the September 4, 2009 press release whereby Antofagasta will fund US$10,000,000 of exploration work over a 5-year period to earn a 60% interest in part of the Company's Asmara Project in Eritrea, now known as the Exploration Areas. HIGHLIGHTS:
ABOUT ANTOFAGASTA MINERALS S.A.: Antofagasta is a wholly owned subsidiary of Antofagasta plc, which is listed on the London Stock Exchange (symbol -- ANTO) and is a constituent of the FTSE-100 index, with interests in mining, transport and water distribution. Its Chilean mining operations, which comprise Los Pelambres, El Tesoro and Michilla, are expected to produce approximately 447,000 tonnes of copper in concentrate and cathode and 7,200 tonnes of molybdenum in concentrate in 2009. It is currently carrying out a brownfield expansion at Los Pelambres and developing the greenfield Esperanza project in Chile, which, when operational, are expected to increase total Group copper production to nearly 700,000 tonnes per year from 2011. Antofagasta also has exploration or feasibility programs in Chile, Pakistan, Zambia and Mexico. At 30 June 2009, Antofagasta plc had net cash of US$1.8 billion and it currently has a market capitalization of US$11.4 billion. ABOUT SUNRIDGE: Sunridge Gold Corp. is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea. Recently the Company published a positive Preliminary Economic Assessment Study on the Emba Derho copper-zinc-gold deposit. Following completion of the above private placement, the Company has 76.2 million shares outstanding and approximately $10 million in cash. Sunridge Gold Corp. 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 or Greg Davis at the numbers listed below.
This press release contains forward-looking statements about the Company and its business. Forward looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices;; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of mineral resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Company's filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and other than as required by applicable securities laws, the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.  Click to Enlarge | |||||||||||||
