2 April 2024
SUNRISE RESOURCES
PLC
("Sunrise" or "the
Company")
SALE OF DIATOMITE
CLAIMS
Sunrise Resources plc is pleased to
announce that it has signed an agreement for the sale of 29 mining
claims ("the Claims") held for diatomite in the Crow Springs area
of Nevada, USA to Dicalite Management Group
("Dicalite").
Key
Points
· The
purchase price is US$150,000 of which US$75,000 is payable on
transfer of the Claims (which has now been received) and $75,000 is
payable when Dicalite submits a mine plan of operations to the
Bureau of Land Management.
·
The Claims cover surface deposits of diatomite
which Dicalite is evaluating as a feed source for its Basalt
diatomite processing plant some 85km distance by road.
·
Sunrise will retain a royalty of US$6/dry ton of
diatomite mined and removed from the Claims and Dicalite will have
an option to purchase the royalty for US$500,000 after the
10th anniversary of the first royalty
payment.
·
Dicalite is privately owned and is a vertically
integrated international industrial minerals company with mining
and processing facilities in the United States and
Europe.
·
The agreement excludes the Company's County Line
Diatomite Project claims which are retained by the Company.
Commenting today, Executive
Chairman Patrick Cheetham said:
"We are pleased to sell these non-core claims and add another
royalty interest to our portfolio. The sale is consistent with our
policy to generate 100% owned attractive exploration projects at
very low cost to be sold or joint ventured to other companies, and
to mitigate risk from over exposure to any one project or
resource. We have already done this successfully with
our Garfield and Stonewall Projects with additional royalties built
into the lease and option agreements on our Jackson's Wash and
Pioche Projects. Our out-of-pocket expenses to date in securing and
maintaining the Crow Springs diatomite claims are less than
US$25,000."
"We believe that Dicalite has the ability and ambition to turn
this royalty to account in a relatively short time frame with
production slated for its Basalt, Nevada processing
plant."
Further
information:
|
Sunrise Resources plc
Patrick Cheetham, Executive
Chairman
|
Tel: +44 (0)1625 838 884
|
|
Beaumont Cornish Limited
Nominated Adviser
James Biddle/Roland
Cornish
|
Tel: +44 (0)207 628 3396
|
|
Peterhouse Capital Limited
Broker
Lucy Williams/Duncan
Vasey
|
Tel: +44 (0)207 469 0930
|
Market Abuse Regulation (MAR) Disclosure
The information set out below is
provided in accordance with the requirements of Article 19(3) of
the Market Abuse Regulations (EU) No. 596/2014 which forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR').
Additional Information
The Claims were acquired by staking
in March 2021 and the Company has incurred costs of US$24,694.58 in
staking and maintaining the Claims. The Company has not carried out
any exploration on the Claims.
The proceeds from selling the Claims
will be applied towards working capital.
About Diatomite
In its raw form, diatomite is a
valuable industrial rock formed by the accumulation in marine and
freshwater lake environments of vast quantities of skeletal
material from single celled aquatic algae called
diatoms.
Diatoms have hollow and lattice-like
silica skeletons and the mass accumulation of these skeletons
during algal blooms forms a rock with very high porosity suitable
for use, amongst other things, as a filtration medium.
About Dicalite
Dicalite Management Group is a
vertically integrated international industrial minerals company
founded in 1928. It produces and processes diatomite (diatomaceous
earth), perlite and vermiculite from 17 facilities in the U.S. and
Europe comprising five strategic mines and twelve processing
facilities. This includes a diatomite processing plant and
associated mining operations at Basalt, Nevada, the fourth oldest
continually operated mine in the state of Nevada.
Two varieties of diatomite are made
at Basalt, calcined and natural.
Natural diatomaceous earth has a
variety of uses in:
·
Animal feed additives
·
Cement and concrete
·
Consumer products
·
Desiccants coatings
·
Mild abrasive applications
·
Polishing compounds
·
Seed coatings
·
Soil amendments
After processing, which can include
heating to a high temperature (calcining) to improve quality,
diatomite is used, for example, in filtering beer, liquor, wine,
fats, fruit juices, and solvents. Commercial deposits of diatomite
have a high brightness, a low bulk density and chemical inertness
which also make it a suitable filler or carrier material in various
industrial and domestic products.