Sunrise Resources plc is pleased to advise that it has granted an Option to Purchase its wholly owned Pioche Sepiolite Project in Nevada, US to a US subsidiary of Spanish company Tolsa S.A. (“Tolsa”), the world’s largest producer of Sepiolite.
· Pursuant to a Binding Heads of Agreement, Sunrise has granted Tolsa an exclusive 6-month Option to Purchase the Pioche Project claims for US$1.25 million payable in cash.
· Tolsa may extend the option for a further 12-month period on payment of US$50,000.
· Sunrise to retain a 3% net revenue royalty for a 25-year period from the commencement of commercial production.
· A nominal advance royalty of $50,000 per annum will be paid to the Company if production is not started within 5 years for any reason.
· Finders fees payable to an independent third party, 20% of future payments, for broking the agreement
· The Agreement follows encouraging results of testwork carried out by Tolsa in Spain following a preliminary field visit to the Pioche Project in December 2021.
· Sepiolite has unique characteristics, is scarce, and there are very few commercial deposits in the world.
Commenting today, Executive Chairman Patrick Cheetham said:
“We are delighted to be working with Tolsa on our Pioche Sepiolite Project. As the world’s largest producer of sepiolite, we feel Tolsa is best placed to evaluate and develop the commercial potential of the Pioche Project.
There are very few commercial sepiolite deposits in the World and whilst the Pioche Project is at an early stage we are expecting Tolsa to move quickly with its evaluation following the signing of this agreement. There is a large market that can be targeted in North America that is currently served by alternative clays or imported sepiolite. Sepiolite from the Pioche Project, being in Nevada and near to rail, is well situated to replace some of this supply.
Owing to the specialised nature of sepiolite and following the success of our initial sampling, we have been working with an industry specialist on a success fee basis to find a partner for the project. We are gratified that this has resulted in a deal with Tolsa, following their own encouraging test-work.
We have been able to negotiate a favourable net revenue royalty for the Pioche Project which could be an important risk-free cash generator in the future.
In addition to our core CS Pozzolan-Perlite Project, Sunrise has a growing portfolio of potential revenue streams from buyouts and royalty interests from our systematic valorisation of non-core projects. In addition to the Pioche Project, our royalty portfolio includes the Stonewall and Garfield Projects operated by Golden Metal Resources plc, the Junction Gold-Silver Project operated by VR Resources Ltd and the Jacksons Wash project operated by Kinross Gold. We also hold a portfolio of 100% owned industrial mineral and precious metal projects and continue to seek valorisation of these assets whilst maintaining our focus on pozzolan and perlite”
Sunrise Resources plc
Patrick Cheetham, Executive Chairman
Tel: +44 (0)1625 838 884
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned