Nevsun, Sunridge stocks soar Nevsun, Sunridge stocks soar on hopes of restarting Eritrean mining projects
06:52 PM EST Jan 05
VANCOUVER (CP) - Shares in Nevsun Resources Ltd. and Sunridge Gold Corp. soared Wednesday after they disclosed that the government of Eritrea is willing to meet with executives to discuss a work halt on their projects ordered by the African country in September.
Shares in Nevsun (TSX:NSU) jumped 76 cents, or 35.5 per cent, to $2.90 Wednesday on the Toronto stock market. Sunridge Gold shares (TSXV:SGC) added 45 cents, or 67 per cent, to $1.12.
Nevsun, Sunridge and its joint venture partner, Sub-Sahara Resources NL, said the three mining companies have received letters from Eritrea's minister of energy and mines asking for a meeting in the near future.
According to Vancouver-based Nevsun, the letter commends the company's "patience and co-operative stance."
Without giving a reason, the Eritrean government ordered all mineral exploration companies in the country to stop their work on Sept. 2.
The company's president and chief executive, John Clarke, will travel to Eritrea, in eastern Africa, next week.
The company said the meeting request "is very encouraging."
Representatives from Sunridge Gold are making arrangements to attend a meeting in Eritrea "as soon as possible."
When the order to stop work was made in September, shares in Nevsun and Sunridge Gold, as well as other Canadian companies exploring in the area, fell sharply.
Despite personal visits by the miners' executives to government officials in Eritrea's capital Asmara, the companies were unable to tell shareholders what was going on.
© The Canadian Press, 2005