Sunridge Gold Corp.

Sunridge Gold Corp. is currently developing the copper-zinc-gold Asmara project in Eritrea, East Africa. Successful exploration has defined six NI 43-101 deposits to date. A feasibility study completed in 2013 on the four advanced projects at the Asmara project demonstrated very strong economics, including an NPV (10%) of $692M and IRR of 34%. On October 19, 2015, Sunridge announced that the Eritrean Ministry of Energy and Mines had awarded three mining licenses to the Asmara Mining Share Company ("AMSC"), a joint-venture company of which Sunridge owns 60% and the Eritrean National Mining Corporation owns 40%. The company will begin Phase 1a Direct Shipping Ore mining (averaging 16% copper) in 2016, which will provide an injection of cash into the project. Once full production is achieved, the operation will average 65 Mlb copper and 184 Mlb zinc/year, with significant gold and silver credits. Exploration potential remains on the project, including two defined “Pipeline Deposits” and numerous high-priority targets. The Asmara project has government participation from the Eritrean National Mining Corporation.

Expert Comments:

"We would have had Sunridge Gold Corp. at the top of the list of companies with assets that could be coveted by larger players, but a Chinese company recently made an offer to buy Sunridge's main asset in Eritrea for just over US$65M. Sunridge has already indicated that it plans to distribute whatever remaining cash it gets after the sale and delist the company." read more >

Gwen Preston, Resource Maven (11/18/15)
"The Sunridge Gold Corp. arbitrage opportunity remains. The Chinese takeover deal is worth roughly CA$0.35/share cash, but the company's shares are available for CA$0.245. The discount represents market hesitation that the deal will actually happen, but I have reason to be pretty confident."

Adrian Day, Global Analyst (11/14/15)
"Further to our discussion on the potential value of the cash distribution from Sunridge Gold Corp.'s sale of its gold-copper mines in Eritrea. . .CA$0.35/share is a realistic estimate for the distribution, though it could be more, allowing meaningful upside from the current stock price."

Brien Lundin, Gold Newsletter (Jefferson Financial) (11/13/15)
"Sunridge Gold Corp. announced that it's accepted an offer for its 60% interest in the Asmara Mining Share Co. in Eritrea. The offer, by a Chinese conglomerate, is for $78.33M (CA$102.4M), which would equate to about CA$0.33/fully diluted share. . .which would imply a 37.5% gain if you bought today and held through the deal's consummation. . .Sunridge is a Buy for what appears to be the likelihood of a nice-sized, quick profit."

Gwen Preston, Resource Maven (11/6/15)
"Sunridge Gold Corp. just got a takeout offer from a Chinese construction company. . .it has offered $78.3M to buy the company's 60% interest in the project. . .the deal is $65M as a purchase price plus $13.3M representing the amount Sunridge is still owed from the Eritrean government. . .if you want to pick up 30%, buy the company right now."

Gwen Preston, Resource Maven (11/6/15)
"Sunridge Gold Corp. just got a takeout offer from a Chinese construction company. The share price moved up immediately on the news, but there remains an opportunity to make some money. . .Sunridge owns the Asmara project in Eritrea. It is a set of very high-grade volcanogenic massive sulfide deposits scattered in a roughly 15km radius of the Eritrean capital city. . .over the last four years, Sunridge updated four resource estimates, negotiated the terms of a buy-in from the Eritrean government, raised $10.8M, completed a feasibility study outlining a low capital cost phased approach to mine development, raised another $6.5M and earned full project permits."

Management Q&A: View From the Top
Michael Hopley
It's been a very active decade filled with milestones for Sunridge Gold, and now following the September signing of a comprehensive permitting agreement with its partner, the government of Eritrea, the Canadian junior is now set to begin production in 2016. President and CEO Michael Hopley discusses the riches of his company's copper, gold, zinc and silver deposits and looks forward to becoming as successful as Nevsun has been.
read more >

More Expert Comments

Experts Following This Company

Eric Coffin, Owner – HRA Advisory
Michael Curran, Managing Director, Research Analyst – Beacon Securities Ltd.
Adrian Day, Founder – Adrian Day Asset Management
Stefan Ioannou, Mining Analyst – Haywood Securities
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Gwen Preston, Founder Resource Maven

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.