On November 6, 2015, Sichuan Road & Bridge Mining Investment Development Corp. Ltd. (SRBM) announced the purchase of a 60 per cent interest in the Asmara Mining Share Company (AMSC), holder of the Asmara Project in Eritrea, from Sunridge Gold Corp. (Sunridge) for US$65 million (approximately, C$85 million) in cash. SRBM also assumed the obligation to pay Sunridge the remaining principal of the deferred payment of US$13.33 million (approximately, C$17.4 million) owed to Sunridge by Eritrean National Mining Corporation (ENAMCO).
As substantially all of Sunridge’s assets were sold as part of this transaction, Sunridge’s board of directors will recommend the disposition of net cash, as a return of capital, to Sunridge’s shareholders once it is received and all obligations of Sunridge have been settled.
SRBM is a subsidiary of Sichuan Road & Bridge (Group) Corporation, a large-scale state-owned enterprise based in Chengdu, China and one of the core subsidiary companies of Sichuan Railway Investment Group Co., Ltd. whose main business is the construction of transportation infrastructure such as highways and railways, the development of hydropower and land and mineral resources projects.
Zhong Lun Law Firm served as SRBM’s Chinese legal counsel.
Fasken Martineau DuMoulin LLP acted as Canadian legal counsel to SRBM with a team that included Michael Boehm, Lei Huang and Sarah Gingrich.
K&L Gates LLP advised Sunridge on Hong Kong law and provided transaction support from a Chinese-law perspective. The K&L Gates team was led by Frank Voon, in Beijing, who was supported by Michael Chan, Sacha Cheong and Iris Bi in Hong Kong.
Axium Law Corporation acted as Canadian counsel to Sunridge with a team that included Rod McKeen and Morgan Hay.