London (Platts)--16Jan2006Canada-listed zinc producer Lundin...

London (Platts)--16Jan2006
Canada-listed zinc producer Lundin Mining has entered in to an alliance
and financing agreement with Sunridge Gold. In a statement released Monday
Sunridge said Lundin Mining would purchase units equal to just under a 10%
equity stake in Sunridge. Sunridge, a mineral exploration company focused on
the acquisition, exploration, discovery and development of precious and base
metal projects, is currently conducting exploration on the high-grade
gold/copper/zinc projects of the Asmara Joint Venture in Eritrea.
"Lundin Mining has subscribed, by way of a non-brokered private
placement, for 3,150,000 units of Sunridge Gold at a price of $1.66/unit for
gross proceeds of $5,2-mil. Each unit consists of one common share and one
common share purchase warrant," said Sunridge. It added that if Lundin
exercised these warrants it would bring its interest in Sunridge Gold to
approximately 18%. Sunridge president and CEO Michael Hopley said: "This is a
very meaningful strategic alliance for Sunridge Gold as it allows the company
to access the technical and financial expertise of the Lundin Mining group and
assist Sunridge Gold in rapidly advancing our projects into production."
Lundin Mining is a Canadian mining and exploration company with a primary
focus in Europe. The main asset is the Zinkgruvan mine, located about 2,000km
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. Lundin also holds a large copper/gold
exploration project in the Norrbotten Mining District of northern Sweden.
In a second statement issued Monday, Sunridge also said it had served
notice to both Sub-Sahara Resources and Africa Wide Resources of its intention
to exercise its option to acquire their combined interests in the Asmara Joint
Venture for shares of Sunridge so that it would own 100% of the Asmara Joint
Venture project. "Pursuant to the terms of the option agreements between the
parties dated Jun 30, 2004 the parties will negotiate the fair value of the
AJV project. Sunridge can purchase the SSR (48%) and AWR (12%) interests in
the AJV for common shares of Sunridge," the group said.