Sunridge Gold (OTCQX:SGCNF) has informed the market about the execution of a shareholder agreement with ENAMCO in a news release and a sub-sequent update on its Asmara project in Eritrea. As explained in our article this agreement is important for the advancement of the Asmara project and we had anticipated this milestone in the near future. ENAMCO stands for Eritrean National Mining Corporation which had already owned a 10% free-carried stake in the copper-gold-zinc project. With the newly executed agreement ENAMCO's stake has increased to 40% representing an important signal of support from the country's authorities.
As a result Sunridge Gold has already received $2M from ENAMCO and will receive further $3M until November 30 this year. Staged payments of further $13.3M will be made upon signing of a finance agreement for the project. ENAMCO will contribute one-third of future funding for the project, and will pay additional $6M towards project development for its retroactive share dating back to July 2012.
Project documentation has been sent to potential sources of project financing "with expectations of indicative term sheets to be delivered from the groups by the end of 2014 for consideration." Sunridge Gold is also continuing its strategic discussions with third parties regarding a possible sale of the project or a stake thereof.
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