Minerals explorer Sunrise Resources Plc (LON:SRES) is exploring new ways to commercialise its diatomite claims in Nevada after receiving notice from EP Minerals, LLC that it was terminating its lease of the County Line project.
The notice was unexpected given that EP only recently expanded its work programme and funding with the US Bureau of Land Management.
Under the terms of the lease agreement, EP has to provide Sunrise with the results of its exploration on the project.
“[EP’s] permitted work programmes have focussed on a specific area of the claims and, based on our own testwork in other parts of the claim group and also the results of tests carried out by another previously interested party, we firmly believe there is an on-going opportunity for the production of high value filter products from County Line diatomite,” said chief executive Patrick Cheetham.
“We will now explore alternative ways to commercialise this opportunity alongside the other projects in our industrial mineral project portfolio which continue to produce good results.”
Shares were down 8% to 0.14p on Tuesday Morning.