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Sunrise Resources Agrees To Possible Lease Of Nevada Processing Plant

(Alliance News) - Sunrise Resources PLC said Friday it has signed an agreement for the evaluation ...

Alliance News 20 September, 2019 | 6:51PM
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(Alliance News) - Sunrise Resources PLC said Friday it has signed an agreement for the evaluation and possible leasing of a mothballed grinding and mineral processing plant, located close to its CS pozzolan-perlite plant in Nevada, US.

The agreement was signed with plant owner Tonopah Resources Inc, and its shareholder Granite Peak Holdings LLC.

The agreement provides for a nine-month period during which Sunrise Resources will carry out due diligence to evaluate the adaptability of the plant for grinding pozzolan. If the plant is deemed unsuitable, the area could be leased as a site for a completely new grinding plant.

The old plant would require additional permits and significant modification before it would be used to produce a ground pozzolan product.

If due diligence is proved positive, Sunrise Resources can enter into a further agreement where it will lease a 5.5 acre area containing and surrounding the plant.

In this agreement, Sunrise Resources will pay to Tonopah Resources USD25,000 per annum and 22 cents per tonne for any material processed and sold on the site.

"We see this agreement as an important piece of the jigsaw we are putting together for the CS project. Our short-term objective is to start producing natural pozzolan as a by-product of processing perlite and by selling run-of-mine natural pozzolan to customers with existing grinding facilities. However, we will secure the widest market and the best price by producing a ground pozzolan product and leasing of the Plant would bring forward this objective," said Executive Chair Patrick Cheetham.

Shares in Sunrise Resources ended 22% higher at 0.14 pence on Friday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Sunrise Resources PLC 0.11 GBX -4.35 -

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