REG - Sunrise Resources - Pioche Sepiolite Project – Tolsa Option

Sunrise ResourcesAnnouncement

27/12/2024 16:00

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RNS Number : 4880R  Sunrise Resources Plc  27 December 2024

 

 

 

27 December 2024

 

 

SUNRISE RESOURCES PLC

("Sunrise" or the "Company")

 

 

Pioche Sepiolite Project - Tolsa Option

 

Sunrise Resources plc advises that Tolsa USA Inc. ("Tolsa") has, at the last
minute, notified the Company that it will not proceed to exercise its option
to purchase the Company's Pioche Sepiolite Project in Nevada USA.  Tolsa has,
however, suggested it is open to discuss alternative arrangements for the
project.

 

The option was originally granted on 28 June 2022 and was extended for an
additional 12 months as announced on 27 December 2023. Until very recently,
the parties had been negotiating more detailed agreements to govern the terms
of calculation and payment of the agreed 3% royalty that would have been
payable to Sunrise and the conveyance of the project claims. However, these
negotiations were not concluded and there was no agreement on the terms for
calculation and verification of the production royalty.

 

During contract negotiations Tolsa indicated that, whilst large deposits of
sepiolite clay have been defined by the wide spaced drilling carried out
to-date at Pioche, it has been difficult to correlate specific sepiolite
grades (and so values) between drill holes. The Company has not been able to
verify this as, despite requesting Tolsa to provide the project data, Tolsa
has, so far, provided only basic data from its earlier programmes and no data
from its 2025 exploration and testing programme.

The Company has been advised that sepiolite deposits in Nevada differ
significantly in origin and character from those exploited in Tolsa's existing
operations in Spain and that we should not expect to see correlation of
specific sepiolite grades between the widely spaced holes drilled to date.

The Company has been advised throughout, and continues to be advised, by Mr
Tom Powell who was formerly General Manager of the IMV Nevada sepiolite clay
mining operations in Nevada and has over 30 years' experience in industrial
minerals, focusing on specialty clays.

The Company will ensure that Tolsa meets its contractual obligations to supply
the detailed project data and remaining exploration samples.

 

The Company is now free to market the project to other parties some of whom
have already expressed interest in the project.

 

 

Commenting today, Executive Chairman Patrick Cheetham said:

 

"Given these circumstances, we do not see Tolsa's decision as a reflection on
the value of the project. Tolsa has expressed interest in alternative
arrangements for the project and has already stated that a large deposits of
sepiolite clay have been identified at Pioche. We expect to be in a position
to verify this soon and take possession of all remaining samples from the
project.

"We look forward to providing further information to shareholders and other
interested parties once this becomes available. Tolsa has paid us US$150,000
in option fees to date, whilst our expenditure on the Pioche Project, at
around £50,000, is just a small fraction of the money we believe has been
spent by Tolsa to date in evaluating the project and from which we stand to
benefit."

 

Further information:

 Sunrise Resources plc                  Tel: +44 (0)1625 838 884

 Patrick Cheetham, Executive Chairman
                                        Tel: +44 (0)207 628 3396

 Beaumont Cornish Limited

 Nominated Adviser

 James Biddle/Roland Cornish
                                        Tel: +44 (0)207 469 0930

 Peterhouse Capital Limited

 Broker

 Lucy Williams/Duncan Vasey

 

Shares in the Company trade on AIM. EPIC: "SRES"

Website: www.sunriseresourcesplc.com (http://www.sunriseresourcesplc.com)

 

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 which forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief,
expectation or opinion which are forward looking statements, and which relate,
inter alia, to the Company's proposed strategy, plans and objectives or to the
expectations or intentions of the Company's directors. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially different from
such forward-looking statements. Accordingly, you should not rely on any
forward-looking statements and save as required by the AIM Rules for Companies
or by law, the Company does not accept any obligation to disseminate any
updates or revisions to such forward-looking statements.

 

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