Vancouver – Lundin Mining (LUN-T, LMC-A) is making a strategic private placement investment in Sanu Resources (SNU-V), a company that is focused on exploration for gold and base metals in African countries such as Eritrea, Burkina Faso and Morocco.
The Vancouver company is investing $2.6 million in Sanu, which is currently the largest exploration landholder in Eritrea, with licences to explore in an area totaling 2,600 square kilometres.
Lundin said it is excited about a recent discovery in western Eritrea, which it said has the potential to become a significant copper zinc deposit.
Known as the Hambok property, it is located near Nevsun Resources’ Bisha polymetallic VHMS deposit and contains massive sulphide mineralization which has been intersected over 1,050 metres of strike length.
Drilling on the property has returned a series of mineralized intersections, including an 11-metre section averaging 7.4% zinc and 0.8% copper.
“With Lundin Mining’s support, we are confident that Sanu will make more discoveries in Africa,” said Neil O’Brien, Lundin’s vice-president, exploration.
Under the terms of the financing, Lundin has subscribed for four million units of Sanu, priced at 65 cents a unit. Each unit is comprised of one common share and one non-transferrable common share purchase warrant. Each warrant entitles the holder to acquire one additional share of Sanu for up to two years for 90 cents each.
On completion the non brokered private placement, Lundin will hold a 14% stake in Sanu. However, it can increase its interest to 24 per cent by exercising its warrants.
The proceeds of the private placement will be used by Sanu to continue exploration on its property portfolio. On January 3, TSX Venture Exchange listed Sanu fell 7 cents to 98 cents, while Lundin eased $2.76 to $41.05 on the Toronto Stock Exchange.
Be the first to comment on "Eritrea sulphides attract Lundin financing"