Sunridge Gold Corp.: Lundin Mining Financing Complete Publish...

Sunridge Gold Corp.: Lundin Mining Financing Complete


Publish Date : 2/13/2006 11:47:00 PM Source : Canada News Onlypunjab.com

Sunridge Gold Corp. (TSX VENTURE:SGC) 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.

wrxsti comment:
It's time to join the dot's and realise what is actually taking place behind the scenes with this project, and the three main players now involved,
namely Lundin Mining, Sunridge and our own SubSahara.

Q.-1) Why does a $2 Billion Canadian Mining Major (Lundin Mining/Group) buy into Sunridge, a $3 per share company whose sole project is the current/approx. 40% minor stake involvement in the Asmara Joint Venture at Eritrea, with the remaining current/approx. 60% percent majority stake involvement held by Sub
Sahara?
A. -1) Through it's large financial stake in Sunridge, Lundin has used it's immense power and muscle to add two Lundin appointee's to the Sunridge board.
Therefore we can safely assume that Lundin is now pulling the strings for moves and decisions from Sunridge.
Sunridge have since advised SubSahara that they would like to buy out the SubSahara majority stake in the Asmara Joint Venture project, but SubSahara has quite rightly rejected the offered pay-out as being too low as to the estimated worth/valuation of the Asmara Project.
After all, the High Grade Gold, Copper and Zinc deposits already discovered and assayed are now worth ever increasing prices, especially in light of the fact that Africa is destined to soon have the greatest ever Bull Market run on its materials and commodity assets in it's history.
So a neutral, independent valuation has been conducted at the behest of both parties, being Sunridge and SubSahara.
The word is now that the valuation is very, very close - and that it is quite rightly very, very high.
SubSahara are all cashed up after the recent raising, undertaken for this exact purpose whereby they were in a position to challenge Sunridge, and indeed hold and retain the majority interest in the Joint Venture.
It's no secret that Lundin are desperate for Sunridge
to emerge victorious, as Lundin is particularly hungry for the Zinc from Asmara at this time.
As a result, there are several angles and positions being undertaken currently, and in saying that I firmly believe that SBS stock has been soaked up in recent weeks by Lundin, in order to cover all possibilities.
At the end of the day, SubSahara don't have the huge dollars, or clout to take on/take out Sunridge/Lundin, but they have played their cards very well to date, and will be at the recieving end of a massive payout very shortly as a result. This will be the absolute best result for SBS, and it's shareholders, and will realise massive upside in the stock SP as it all unfolds very shortly.

wrxsti