(Alliance News) - Sunrise Resources PLC on Wednesday said it has granted an option extension to Tolsa USA Inc for the purchase of its Pioche Sepiolite project.
The Cheshire, England-based company focused on industrial mineral projects in Nevada said it has given Tolsa a 12-month extension to its option, with Tolsa to pay an extension fee of USD100,000 on or before January 15.
Tolsa USA is a subsidiary of Spanish firm Tolsa SA, "the world's largest producer of sepiolite," according to Sunrise.
The Pioche Sepiolite project is located in Nevada, US. Sepiolite is an industrial clay, rare in commercial deposits.
The firm said the option exercise price has been increased to USD1.40 million from USD1.25 million.
Sunrise noted that it will also receive a 3% ad valorum royalty.
Executive Chair Patrick Cheetham said: "We are pleased to generate this additional income from the Pioche Project whilst increasing the option exercise price. This is a win-win arrangement.
"We believe that Tolsa, as the world's largest producer of sepiolite, is best placed to maximise the development potential of the project and the value of our ongoing royalty interest and so we are happy to give them the additional time required to achieve this."
Sunrise shares rose 7.7% to 0.070 pence each on Wednesday morning in London.
By Harvey Dorset, Alliance News reporter
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Sunrise Res (SRES)