Sunrise Resources Plc CS PROJECT AGREEMENT, REGARDING PROCESSING PLANT (1533N)
September 20 2019 - 8:00AM
UK Regulatory
TIDMSRES
RNS Number : 1533N
Sunrise Resources Plc
20 September 2019
20 September 2019
SUNRISE RESOURCES PLC
("the "Company")
CS PROJECT AGREEMENT, GRINDING & MINERAL PROCESSING
PLANT
Sunrise Resources plc (ticker symbol 'SRES") is pleased to
announce that it has signed an agreement incorporating a detailed
term sheet ("the Agreement") allowing the Company to evaluate and,
if appropriate, to lease a mothballed grinding and mineral
processing plant located close to the Company's CS Pozzolan-Perlite
Project in Nevada USA ("the Plant").
The Agreement is made with the owners of the Plant, Tonopah
Resources Inc. and its ultimate controlling shareholder, Granite
Peak Holdings LLC. The Plant is located at Millers, 15 miles by
road from the CS Project, adjacent to Highway 6 and some 13 miles
west of the town of Tonopah. Millers is an abandoned townsite where
a 100-stamp mill was built in 1906 to treat silver and gold ores
from the silver mines of Tonopah. The Plant now of interest was
built in 1976 by Lurghi Engineering to reprocess the tailings from
the original mill which is no longer present.
The Plant operated successfully until the 1980s and comprises a
large ball mill, mill building, gantry cranes and downstream silver
leaching and extraction plant. The Plant will require additional
permits and significant modification if it is to be used for
producing a ground pozzolan product including the addition of
front-end crushing facilities and mill-downstream size
classification. The Plant site has mains power connected, highway
access and is located on a parcel of private land owned by Tonopah
Resources Inc.
The Agreement provides for a 9-month period during which the
Company can carry out due diligence to evaluate the adaptability of
the Plant for grinding pozzolan. If the Plant is unsuitable the
Plant area could be leased as a favourable site for a completely
new pozzolan grinding plant.
Should the Company's due diligence prove positive the Agreement
allows Sunrise Resources to elect that all parties use their best
endeavours to negotiate in good faith and enter into a further
agreement ("the Lease Agreement") whereby Sunrise Resources will
lease a 5.5-acre area containing and surrounding the Plant. The
Agreement provides that the Lease Agreement will be on
substantially the same terms - and on the same financial terms - as
those contained in a detailed term sheet annexed to, and forming
part of, the Agreement. This term sheet provides for a 20-year
lease, extendable by mutual agreement for two further periods of 10
years each.
Should the Company proceed with the Lease Agreement it will pay
to Tonopah Resources an annual lease payment of $25,000 per annum
and an amount of 22 cents per ton for any material processed and
sold from the site. These amounts will be fixed for three years and
then subject to annual adjustment for inflation.
Commenting today Sunrise Executive Chairman Patrick Cheetham
said: "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. The Plant is ideally located for the Project and the
markets we are targeting."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Further information:
Sunrise Resources plc Tel: +44 (0)1625 838 884
Patrick Cheetham, Executive
Chairman
Tel: +44 (0)207 628 3396
Beaumont Cornish Limited
Nominated Adviser and Broker
James Biddle/Roland Cornish
Shares in the Company trade on AIM under the symbol "SRES" and
also on the NEX Exchange (Secondary Market).
Location Plan: Millers Grinding Plant and Proposed Lease
Area
Photo: Ball Mill inside Mill Building
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END
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