Changes to Eritrean portfolio

摘要

Joint venture partner Sunridge Gold Corp also announced its intention to exercise its own right to acquire Sub-Sahara's interest in the Asmara copper-gold project. In January, Sunridge served notice on both Sub-Sahara (48 percent) and Africa Wide Resources Ltd (AWR) (12 percent) of its intention to exercise its option to acquire their combined interests in the JV for shares in Sunridge, giving it a 100 percent interest in the Asmara JV. But Sub-Sahara rejected Sunridge's valuation and as a result, SRK Consulting was appointed to complete a valuation of the project, based on the Valmin code, which was expected to be completed in early April. Following the success of the initial drilling at the Zara project, Sub-Sahara announced it planned to increase its equity in the project from 33.3 percent to 66.6 percent by acquiring the 33.3 percent interest of AWR. Under the agreement, Sub-Sahara will issue 20 million shares and 10 million options to AWR, and pay a net smelter return royalty of 1.5 percent on 33.3 percent of the revenue derived from any gold or metal recovered from the project.