(Sharecast News) - Sunrise Resources updated the market on its royalty interest in the Crow Springs Diatomite Project in Nevada on Friday.
The AIM-traded firm said the project was recently sold to Dicalite Management Group for $0.15m, with half of the payment already received and the rest due on the submission of a mine plan of operations to the US Bureau of Land Management (BLM).
It said on Friday that Dicalite had indicated that preparations for submitting the plan to the BLM were underway, which would trigger the additional payment to Sunrise.
Sunrise retained the right to a royalty payment of $6 per dry ton of ore delivered to Dicalite's nearby processing plant.
Subject to obtaining the necessary mine permits, Sunrise expected that royalty income could start within the next 12 months.
"We are pleased to see Dicalite progressing the development of the project so rapidly and look forward to seeing their plan of operations," said executive chairman Patrick Cheetham.
"We expect this to detail the scale of the operation which we believe will be a relatively simple mining operation extracting ore for delivery to their existing diatomite processing plant.
"We believe that Dicalite, permits allowing, is planning to start production as early as this time next year which would result in royalty income being generated from that point."
At 1149 BST, shares in Sunrise Resources were up 13.04% at 0.07p.
Reporting by Josh White for Sharecast.com.
Sunrise Res (SRES)