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Sale Option Agreement - Pioche Sepiolite Project
Sale Option Agreement - Pioche Sepiolite Project.
About this update from Sunrise Resources Plc
[{"type":"text","content":"\n \n \n 28 June 2022\n \n \n \n SUNRISE RESOURCES PLC\n \n \n \n (\"Sunrise\" or the \"Company\")\n \n \n \n \n \n \n \n \n Sale Option Agreement - Pioche Sepiolite Project\n \n \n \n \n \n \n \n \n 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.\n \n \n \n \n \n \n Key Points\n \n \n \n \n \n \n ·\n 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.\n \n \n ·\n Tolsa may extend the option for a further 12-month period on payment of US$50,000.\n \n \n \n \n \n ·\n Sunrise to retain a 3% net revenue royalty for a 25-year period from the commencement of commercial production.\n \n \n \n \n \n ·\n 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.\n \n \n \n \n \n ·\n Finders fees payable to an independent third party, 20% of future payments, for broking the agreement\n \n \n \n \n \n ·\n 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.\n \n \n \n \n \n ·\n Sepiolite has unique characteristics, is scarce, and there are very few commercial deposits in the world.\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Commenting today, Executive Chairman Patrick Cheetham said:\n \n \n \n \n \n \n \n \n \n \"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.\n \n \n \n \n \n \n \n \n \n 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 i...