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It is an important signal for two other juniors involved in the area: Sunridge Gold SGC.v and Lukas Lundin's Sanu Resources SNU.v recently acquired by his Global Exploration Play Canadian Gold Hunters CGH.to. Money becomes available for solid Gold projects again even in Africa - it is a sign of recovery in Gold Junior mining.

"One of our risky picks in Africa after recent downturn Sunridge Gold SGC.v announced positive PEA on its Emba Derho deposit. It is again Junior Investment Cycle with chance for a second entry. The most interesting part is CA agreements signed with 7 counterparties, can we smell M&A here? Project depends on Nevsun Resources NSU.to development, but buyers are coming in after latest PR push from the company. Another play in the area is Lukas Lundin's Sanu Resources SNU.v."

"Nevsun Resources Ltd. (TSX:NSU - News)(AMEX:NSU - News) is very pleased to announce that its Bisha Project in Eritrea has received all required credit approvals from the project finance lenders for debt facilities totaling $235 million. Documentation of the facilities has been progressing in parallel and financial close is expected shortly. All amounts are expressed in United States dollars.

The debt package is a mix of senior and subordinated loans from a lending group comprised of seven institutions from Europe and South Africa. The arrangements include an available cost over-run facility of $30 million that will be in addition to a contingency allowance of $32 million in the budget. The Project is now more than one third completed, and the forecast cost to complete remains on budget.
Endeavour Financial is the Company's project finance advisor.
At recent metal prices, the Project is expected to generate enough cash in the first two and a half years to repay all debt facilities, as well as fund the copper phase mine expansion during the same period. The projected operating cash costs for gold production are estimated to be less than $230/oz, including royalties. The after tax internal rate of return of the Project, using recent metal prices and including the cost of finance, is approximately 54%.
The mine is expected to start producing gold in Q3 2010. A recent update on the Project itself can be found in the Company's Q1 MD&A and news release dated May 13, 2009. Photographs of progress can be found on the Nevsun web site at - http://us.lrd.yahoo.com/_ylt=AncER3wkwPgRbZ_llaEcqeetcq9_/SIG=11kntejde/**http%3A//www.nevsun.com/properties/photo_gallery/.
The Company looks forward to progressing Bisha through to production with the continued full support of the Eritrean Government."