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Oil & Gas

Sunridge Gold gets conditional green light for asset sale

The conditional approval paves the way for the company to dissolve and return surplus cash to shareholders

Soon-to-be dissolved Sunridge Gold (CVE:SGC) has received conditional approval from the TSX Venture Exchange to sell its 60% interest in the Asmara project in Eritrea.

The company flagged its intention to sell the stake on 6 November to Sichuan Road & Bridge Mining Investment Development Corp. Ltd. (SRBM) for a purchase price of US$65mln.

Once the final cash payment from SRBM is received by Sunridge, and all transaction costs and other obligations of the company have been settled, the company plans a cash distribution of all remaining funds by way of return of capital to shareholders.

The sale of the shares of AMSC represents the sale of substantially all the assets of the company and therefore will require the approval of at least two-thirds of the votes cast by the shareholders of Sunridge at the special shareholder meeting called for Vancouver on 22 January, 2016.

The board is recommending shareholders should vote to approve the plan to return capital to shareholders and dissolve the company.

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