Sunrise Resources (LON:SRES) has leased out its County Line Diatomite claims to EP Minerals for 25 years.
The terms of the deal will see Sunrise receive a revenue-based royalty every six months from the start of production.
EP Minerals must also make minimum royalty payments to Sunrise comprising an initial payment of US$450,000 in 18 months and three years thereafter, a payment of US$75,000 and annual payments of US$150,000 in each subsequent year.
Patrick Cheetham, Sunrise’s executive chairman, said he was delighted with the agreement.
“It significant revenue potential at no further cost or risk to shareholders and provides an excellent model for other industrial minerals projects currently under consideration."
The Country Line project is in Nevada, US and comprises an area in excess of 8 sq km, most of which sits on top of deposits of diatomite.
The lease agreement allows EP Minerals to continue its evaluation of the company's 109 claims for an 18 month period.