Sunrise Resources PLC - miner focused on operations in US state of Nevada and Western Australia - Agrees to sell non-core Garfield and Stonewall properties in Nevada, US to metals explorer Power Metal Resources PLC for GBP20,000 in cash and 2.3 million shares in Power Metal, issued at a price of 2.75 pence each, implying a total of GBP61,875.
Both properties are early-stage miner exploration projects, where limited exploration and data evaluation has identified targets for sediment hosted skarn and porphyry-style copper-gold mineralisation at Garfield and epithermal-style gold-silver mineralisation at Stonewall.
Sunrise will retain a 2% net smelter return royalty on the properties, which can be bought by Power Metal for USD1 million for each property.
"This disposal of these two non-core assets is in line with strategy and our continuing focus on our CS Pozzolan Perlite Project in Nevada. Nevertheless, we consider these two projects to be highly prospective and I am delighted that this agreement gives us not only a profit on sale but also exposure to the upside potential of these projects through our retained royalty interests," said Sunrise Executive Chair Patrick Cheetham.
Current stock price: 0.24 pence, down 5.2%
Year-to-date change: down 14%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Sunrise Res (SRES)
Power Metal (POW)