Grandich Client Sunridge Gold

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June 07, 2012 11:41 AM


Despite the absolute worse junior resource market I ever had the “displeasure” to be in, Sunridge managed to secure a $ 9.25 million *private placement at $0.37 per unit – a 10% premium to market.. *This investment with the Shanghai Richstone Investment Group out of Beijing demonstrates a strong vote of confidence in the company and the excellent economics of the Asmara Project as announced in their PF study on May 2.

This shows that large, sophisticated Chinese companies are still looking for great projects that are undervalued in this current market. The Sunridge team has accomplished what juniors are supposed to do – explore, discover, increase size of resources, complete economic studies and develop to production. This success is being recognized by groups like Shanghai Richstone and if there’s justice in the resource world,* be by the market again one day.

Sunridge can now focus on completing the Feasibility Study on the Asmara Project, which showed very strong economics in a Prefeasibility with a 10% discounted Net Present value of over $555 million.

Shanghai Richstone appears to fit for a financial strategic alliance for Sunridge *as they should be able to assist Sunridge with future financing the capital cost of building the mine and greatly increasing their exposure to the aggressive mining markets and investors in China. Shanghai Richstone is a private energy and mining company based in Beijing, with oil and mining production in China as well as interests in oil recovery technology, metal trading, and strong ties to an influential Chinese investor base.

On a side note, I continue to believe the Chinese are going to expand* their interests in Eritrea, including possibly taking a run at Nevsun Resources.




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