(Alliance News) - Sunrise Resources PLC on Wednesday said Tolsa USA Inc will pay USD50,000 to continue the option to purchase the company's Pioche Sepiolite project in the US state of Nevada.
Sunrise is a Macclesfield, England-based mine developer with operations in Nevada. Its shares were up 7.3% to 0.12 pence each in London on Wednesday morning.
Tolsa is the US subsidiary of Madrid-based sepiolite producer Tolsa SA.
Sunrise said that Tolsa is required to make a payment of USD50,000 to the company to continue its option to purchase the Pioche Sepiolite project in Nevada, US for 12 months.
This means that Tolsa can purchase the Pioche project for USD1.3 million by December 28, 2023. It is also required to pay Sunrise a 3% royalty.
This comes as Tolsa's trenching programme was successful in demonstrating continuity of the sepiolite beds mapped at surface.
Sunrise added that Tolsa is now planning a resource definition drilling programme, further industrial testing and feasibility studies.
Chair Patrick Cheetham said: "We are delighted with the progress being made by Tolsa since our agreement was signed in the summer and to see the commitment to resource definition drilling in the Spring when the snow melts.
"As we know, Sepiolite is a rare mineral with few commercial deposits in the world, and Tolsa is the world's largest producer, so it is significant, I believe, when Tolsa tells us this project has the highest priority within the Tolsa group," Cheetham continued.
By Sophie Rose, Alliance News reporter
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Sunrise Res (SRES)