Sunridge Gold Corp. (CVE:SGC) (OTCQX:SGCNF) has been steadfast in the advancement of its Asmara project in Eritrea, making progress on all fronts, with the latest development being a plan to raise up to $3 million in a private placement.
The company told investors on Thursday that it has appointed Tempest Capital Corp to act as agent for the offering, which will see Sunridge issue up to 15.79 million units at a price of 19 cents apiece.
Each unit will be made up of one common share and one share purchase warrant, with every warrant entitling the holder to purchase one additional share at a price of 35 cents each until October 18, 2017.
Sunridge is planning to use the new funds for further development of its Asmara property as well as general working capital purposes. The offering, which is still subject to regulatory approvals, is expected to close by October 18.
The company is moving ever closer to production with the Vancouver-based exploration and development company very much focused on its flagship copper-zinc-gold-silver project in the eastern-African nation of Eritrea, making notable progress.
The four advanced deposits that make up the Asmara project (Emba Derho, Adi Nefas, Gupo Gold and Debarwa) have already been the subject of a feasibility study earlier in the year that showed that mining at the project and processing of the ore near the large Emba Derho deposit is economically robust.
In recent days, the company has undertaken a social and environmental impact assessment due for completion next month, in order to make application to the government for a mining license.
In addition to these efforts, negotiations are underway with the Eritrean National Mining Corporation (ENAMCO) to determine the price the government organization will pay to purchase 30 per cent of the project from Sunridge.
Discussions with potential debt financing lenders have also begun, as has an independent due diligence review -- the step in advance of signing the financing agreement, when potential investors examine the project in detail before deciding to fund work on the property. The review, which is being conducted by Micon International Limited, commenced in June and is due for completion before the end of the calendar year.
The project, which has a mine life of more than 15 years, is pegged to produce a total of more than 841 million pounds of copper and 1.87 billion pounds of zinc, as well as gold and silver. Average operating costs over the life of the mine are estimated at just under $30 a tonne.
Separately, the company also said Thursday that it intends to settle outstanding debt of $830,128 by issuing units, a transaction that also still needs TSX Venture Exchange approval.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.