Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Sunrise Resources shares surge as it secures MOU for development of CS project

The AIM-listed miner said that under the terms of the MOU, the parties would negotiate a purchase and sales agreement to sell/buy a minimum quantity of raw perlite
Handshake
The purchaser is a long established buyer and processor of raw perlite

Sunrise Resources PLC (LON:SRES) shares surged in early trading Friday after it said it had signed a non-binding memorandum of understanding (MOU) that will pave the way for the first sales of perlite from its CS Pozzolan-Perlite project in Nevada, USA.

The AIM-listed miner said that under the terms of the MOU, the parties would negotiate a purchase and sales agreement to sell/buy a minimum quantity of raw perlite over a specified period.

WATCH: Sunrise Resources signs MOU for first sales of perlite from CS project

Sunrise added that the purchaser, a long established buyer and processor of raw perlite, would provide commercial and logistical support and advice to Sunrise during the development of the perlite deposits on its CS and NewPerl Projects.

The purchaser would also make its production plant available to the projects for commercial scale testing, the company said in a statement.

Sunrise also said that the proposed Offtake Agreement would account for a significant proportion of the production tonnage required to justify development of its perlite deposits.

Patrick Cheetham, executive chairman of Sunrise, said: "This is a significant step forward for the Company and a key value driver for the CS Project. The perlite deposits at our CS and NewPerl Projects represent new discoveries and are creating significant interest amongst consumers of raw perlite.

He added: “The market for horticultural grades of perlite is particularly strong and we look forward to working with the Purchaser to bring the project into production. In the meantime our mine permitting work and pozzolan testwork is continuing apace."

In late afternoon trading, Sunrise Resources shares topped the London market's gainer board, up shares were up 46.2% at 0.19p.

In a note to clients, analysts at 'house' broker Northland Capital said: "It’s important to note that the current MOU for a proportion of the potential perlite production is non-binding and there remains a risk that it will not lead to a commercial offtake agreement. However, it remains an important first step towards securing an offtake agreement."

 -- Adds broker comment, updates share price -- 

View full SRES profile View Profile

Sunrise Resources Plc Timeline

Related Articles

1523526822_gold_bars,_sized.png
April 12 2018
The Silver Cloud project lies on one of the world's richest gold belts
zinc in periodic table
Thu
Galileo's Star zinc project in Zambia is showing plenty of promise
1535033582_lithium-periodic-11.jpg
August 23 2018
American Manganese is blazing a trail in the recovery of metals from scrap cathode material rejected by battery manufacturers

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use