Sanu Resources Ltd.
TSX VENTURE : SNU

Sanu Resources Ltd.

January 03, 2007 02:30 ET

Lundin Mining Makes Strategic Investment in Sanu

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 3, 2007) - Sanu Resources Ltd. ("Sanu") (TSX VENTURE:SNU) is pleased to announce that the strategic investor referred to in its December 27, 2006 press release is Lundin Mining Corporation (TSX:LUN)(AMEX:LMC)(SSE:LUMI) ("Lundin Mining").

Lundin Mining has subscribed to 4,000,000 units of Sanu at a price of $0.65 per unit for proceeds of $2,600,000. As announced on December 27, 2006, each unit consists of one common share (a "Share") and one non-transferable common share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one additional Share for a period of two years at a purchase price of $0.90 each. On closing, Lundin Mining will hold a 13.4% equity stake in Sanu. The Shares and any Shares issued on exercise of the Warrants are subject to restrictions on transfer for a period of four months from closing. The proceeds of the private placement will be used to continue exploration on the Company's property portfolio and general working capital.

"We are extremely pleased to have not only the financial backing but also the technical acumen of Lundin Mining as we move our projects forward," states Mr. Michael Winn, President and CEO of Sanu. "Lundin Mining's substantial experience in running profitable mines and their practical knowledge of massive sulphide systems adds significant value to our exploration efforts in Africa."

Neil O'Brien, Vice President of Exploration for Lundin Mining, commented, "This strategic investment in Sanu allows us to participate in the exploration and advancement of exciting new discoveries located within an emerging premier polymetallic massive sulfide belt in western Eritrea in addition to properties in Burkina Faso and Morocco that hold excellent upside discovery potential. I am especially impressed with the quality and success of the African exploration team that Sanu has assembled. With Lundin Mining's support, we are confident that Sanu will make many more discoveries in Africa."

Profile

Sanu is a mineral exploration company focused on the acquisition, exploration and discovery of world-class gold and base metal deposits in Africa and is currently exploring in Eritrea, Burkina Faso and Morocco. The Company has 25.8 million shares outstanding and trades on the TSX Venture Exchange under the symbol SNU.

Forward-Looking Statement

Some statements in this release contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

Contact Information

  • Sanu Resources Ltd.
    Michael Winn
    President
    (949) 494-6431
    or
    Sanu Resources Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 688-2199
    (604) 688-1157 (FAX)