3rd Dec 2015 08:51
LONDON (Alliance News) - Sunrise Resources PLC on Thursday said its SR Minerals Inc subsidiary in the US state of Nevada has reached a deal to lease its County Line mining claims in the state to EP Minerals LLC.
Under the agreement, SR Minerals will lease the diatomite claims at the project to EP Minerals for 25 years, with Sunrise to receive revenue-based royalty payments, due every six months after the start of production.
EP Minerals will make an initial USD450,000 payment to Sunrise in 18 months for the lease, with USD75,000 per year paid in each of the three years after that, and then another USD150,000 per year after this.
"We are delighted to have signed this agreement with EP Minerals. The agreement provides the company with significant revenue potential at no further cost or risk to shareholders and provides an excellent model for other industrial minerals projects currently under consideration," Sunrise Executive Chairman Patrick Cheetham.
Sunrise shares were up 14% to 0.2 pence on Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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