Sub-Sahara shares surge after ban liftedSub-Sahara shares surge after ban lifted
January 17, 2005 - 2:39PM
Shares in junior explorer Sub-Sahara have surged after the government of Eritrea lifted its ban on exploration by foreign companies.
Perth-based Sub-Sahara had been in limbo since September last year when it received a letter from the Eritrean mines minister thanking it for ceasing activity and saying the government would clarify the situation once it had made a decision.
Sub-Sahara said it met with the minister on Friday and was told the government had reviewed the situation and would not make any changes to the country's mining act.
However, the government's optional equity participation in mining operations would increase to 30 per cent from 20 per cent.
Sub-Sahara said it would immediately begin planning activities on the high-grade Debarwa copper gold deposit and other targets within its Asmara project area with joint venture partner, Canadian explorer Sunridge Gold Corp.
The cease work order did not extend to oil and gas explorers.
Sub-Sahara shares were up 1.3 cents, or 26 per cent, at 6.3 cents by 1426 AEDT on Monday after hitting an intra-day high of 7.5 cents.
© 2005 AAP