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

map showing Cobalt belt in East Ontario with projects marked
August 14 2018
A historical 8-tonne bulk sample from the Mulligan project averaged 10% cobalt grade.
drilling
December 03 2018
Alto’s aim is to expand the gold resources and reserves to recommence profitable mining operations at the Sandstone Gold Project.
A manganese sample from the Bryah Basin Project
October 02 2018
Emerging new applications for manganese in batteries and energy storage are seen as exciting opportunities.

© 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