SUNRISE SECURES FIRST OFFTAKE MOU
FOR DEVELOPMENT OF CS PROJECT
Sunrise Resources plc, the AIM-traded company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, is delighted to announce that it has signed a non-binding Memorandum of Understanding (“MOU”) paving the way for the first sales contract for perlite from the CS Project.
The counterparty (“the Purchaser”) is a long established buyer and processor of raw perlite. The Purchaser’s identity is being held confidential for commercial reasons.
· The MOU establishes a clear intent that:
Ø The Parties will negotiate and enter into a definitive purchase and sales agreement (“Offtake Agreement”) under which the parties will commit to sell/buy a specified minimum quantity of raw perlite over a specified period.
Ø The Purchaser will provide valuable commercial and logistical support and advice to Sunrise during the development of the perlite deposits on its CS and NewPerl Projects.
Ø The Purchaser will make its production plant available to the projects for commercial scale testing.
· The proposed Offtake Agreement would account for a significant proportion of the production tonnage required to justify development of the Company’s perlite deposits.
Commenting today, Executive Chairman Patrick Cheetham said: “This is a significant step forward for the Company and a key value driver for the CS Project. The perlite deposits at our CS and NewPerl Projects represent new discoveries and are creating significant interest amongst consumers of raw perlite. The market for horticultural grades of perlite is particularly strong and we look forward to working with the Purchaser to bring the project into production. In the meantime our mine permitting work and pozzolan testwork is continuing apace.”
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