Sunridge Gold Corp.

Sunridge Gold Corp.

October 02, 2009 08:01 ET

Sunridge Gold Closes Private Placement and Definitive Exploration Agreement With New Partner Antofagasta Minerals S.A.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2009) - Sunridge Gold Corp. ("Sunridge" or the "Company") (TSX VENTURE:SGC) 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.


- The exploration agreement with Antofagasta excludes the current existing Development Areas including the four defined deposits outlined to date and will therefore focus on other areas of the Asmara Project, known as the Exploration Areas, which are considered to have the potential for large new discoveries. Sunridge still retains a 100% interest in the four defined deposits outlined to date on the Asmara Project.

- Sunridge will be conducting and funding exploration programs on the Development Areas, while at the same time conducting exploration on the Exploration Areas which will be funded by Antofagasta (see map below).

- Combined with its existing cash of approximately $4.5 million, Sunridge now has a strong cash position of approximately $10.0 million following closing of the private placement. This will allow Sunridge to aggressively conduct exploration and development programs and advance deposits toward final feasibility studies on the existing deposits on the Asmara Project as well as commencing exploration on the Besakoa project in Madagascar.

- The alliance between Sunridge and one of the premier copper producers in the world should bring strong benefits to the exploration and potential development of the Asmara Project.


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.


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 or call Don Halliday or Greg Davis at the numbers listed below.


Michael Hopley, President and Chief Executive Officer

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.

To view the map associated with this press release, please click on the following link:

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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