REG - Sunrise Resources - SALE OF DIATOMITE CLAIMS

Sunrise ResourcesAnnouncement

02/04/2024 07:00

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RNS Number : 8985I  Sunrise Resources Plc  02 April 2024

2 April 2024

 

SUNRISE RESOURCES PLC

("Sunrise" or "the Company")

 

SALE OF DIATOMITE CLAIMS

 

Sunrise Resources plc is pleased to announce that it has signed an agreement
for the sale of 29 mining claims ("the Claims") held for diatomite in the Crow
Springs area of Nevada, USA to Dicalite Management Group ("Dicalite").

 

Key Points

 

·      The purchase price is US$150,000 of which US$75,000 is payable on
transfer of the Claims (which has now been received) and $75,000 is payable
when Dicalite submits a mine plan of operations to the Bureau of Land
Management.

 

·    The Claims cover surface deposits of diatomite which Dicalite is
evaluating as a feed source for its Basalt diatomite processing plant some
85km distance by road.

 

·    Sunrise will retain a royalty of US$6/dry ton of diatomite mined and
removed from the Claims and Dicalite will have an option to purchase the
royalty for US$500,000 after the 10(th) anniversary of the first royalty
payment.

 

·    Dicalite is privately owned and is a vertically integrated
international industrial minerals company with mining and processing
facilities in the United States and Europe.

 

·    The agreement excludes the Company's County Line Diatomite Project
claims which are retained by the Company.

 

Commenting today, Executive Chairman Patrick Cheetham said:

 

"We are pleased to sell these non-core claims and add another royalty interest
to our portfolio. The sale is consistent with our policy to generate 100%
owned attractive exploration projects at very low cost to be sold or joint
ventured to other companies, and to mitigate risk from over exposure to any
one project or resource.   We have already done this successfully with our
Garfield and Stonewall Projects with additional royalties built into the lease
and option agreements on our Jackson's Wash and Pioche Projects. Our
out-of-pocket expenses to date in securing and maintaining the Crow Springs
diatomite claims are less than US$25,000."

 

"We believe that Dicalite has the ability and ambition to turn this royalty to
account in a relatively short time frame with production slated for its
Basalt, Nevada processing plant."

 

 

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

 

 

 

Market Abuse Regulation (MAR) Disclosure

 

The information set out below is provided in accordance with the requirements
of Article 19(3) of 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').

 

Additional Information

 

The Claims were acquired by staking in March 2021 and the Company has incurred
costs of US$24,694.58 in staking and maintaining the Claims. The Company has
not carried out any exploration on the Claims.

 

The proceeds from selling the Claims will be applied towards working capital.

 

About Diatomite

 

In its raw form, diatomite is a valuable industrial rock formed by the
accumulation in marine and freshwater lake environments of vast quantities of
skeletal material from single celled aquatic algae called diatoms.

 

Diatoms have hollow and lattice-like silica skeletons and the mass
accumulation of these skeletons during algal blooms forms a rock with very
high porosity suitable for use, amongst other things, as a filtration medium.

 

 

About Dicalite

 

Dicalite Management Group is a vertically integrated international industrial
minerals company founded in 1928. It produces and processes diatomite
(diatomaceous earth), perlite and vermiculite from 17 facilities in the U.S.
and Europe comprising five strategic mines and twelve processing facilities.
This includes a diatomite processing plant and associated mining operations at
Basalt, Nevada, the fourth oldest continually operated mine in the state of
Nevada.

 

Two varieties of diatomite are made at Basalt, calcined and natural.

 

Natural diatomaceous earth has a variety of uses in:

 

·    Animal feed additives
(https://www.dicalite.com/diatomaceous-earth/applications/anti-caking/)

·    Cement and concrete
(https://www.dicalite.com/diatomaceous-earth/applications/cement-concrete/)

·    Consumer products
(https://www.dicalite.com/diatomaceous-earth/applications/consumer-products/)

·    Desiccants coatings
(https://www.dicalite.com/diatomaceous-earth/applications/dessicants/)

·    Mild abrasive applications
(https://www.dicalite.com/diatomaceous-earth/applications/abrasives-and-polishing/)

·    Polishing compounds
(https://www.dicalite.com/diatomaceous-earth/applications/abrasives-and-polishing/)

·    Seed coatings
(https://www.dicalite.com/diatomaceous-earth/applications/seed-coatings/)

·    Soil amendments
(https://www.dicalite.com/diatomaceous-earth/applications/soil-amendment/)

 

After processing, which can include heating to a high temperature (calcining)
to improve quality, diatomite is used, for example, in filtering beer, liquor,
wine, fats, fruit juices, and solvents. Commercial deposits of diatomite have
a high brightness, a low bulk density and chemical inertness which also make
it a suitable filler or carrier material in various industrial and domestic
products.

 

 

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