Vancouver-based Sunridge Gold Corp.(CVE:SGC) (OTCQX:SGCNF) says that it has closed the second and final tranche of its non-brokered private placement financing, raising a total of $10.8 million.
In the last tranche, the company issued around 1.6 million units at a price of 22 cents each, for gross proceeds of $349,430.
Each unit is made up of one common share and one half of one share purchase warrant. The company has issued a total of around 49.2 million units.
Every warrant allows for the purchase of an additional share, at a price of 35 cents until October 18, 2017.
The company said it plans to use the new funds to complete the feasibility study on its Asmara project in Eritrea, as well as for other project expenses and general corporate purposes.
Finder's fees and options were paid as part of the placement.
The Asmara project consists of four mineral deposits, the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits, and the Gupo gold deposit, all located within 40 kilometres of the capital city of Asmara.
The results of a preliminary feasibility study that considered all deposits being processed at a central mill was announced in May, and showed production of 365,000 tonnes of copper, 812,000 tonnes of zinc, 415,000 ounces of gold and 11 million ounces of silver over a 15.25 year mine life.
The report also projected a pre-tax net present value of $555 million at a 10 per cent discount rate and an initial capital cost of $489 million.
Sunridge is now completing a feasibility study on the project, which is planned for completion in 2013, subject to financing. Application for a mining license and permitting will follow this study.
In late August, Sunridge said that the Eritrean government planned to acquire a 30 per cent paid interest in the Asmara project. The 30 per cent interest owned by the Eritrean National Mining Corp (ENAMCO) would be in addition to the government's existing right to get a 10 per cent non-assessable stake that will be carried to production by participating partners.
The terms of the acquisition had not yet been established at the time, Sunridge said, and would be determined through negotiations.
The mineral exploration and development company also has exploration properties in Madagascar.
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