The AIM-listed firm said the agreement would allow it to conduct 9 months of due diligence on the plant, which was mothballed in the 1980s, to ensure it was adaptable for the production of ground pozzolan.
If the plant was suitable, Sunrise said it would pay the plant’s owner, Tonopah Resources, US$25,000 per year in addition to US$0.22 per ton of any material processed and sold from the site.
These amounts would be fixed for three years and then subject to inflation adjustment.
If the plant was found not to be suitable, Sunrise said it would instead lease the site to build a brand new pozzolan grinding plant.
Patrick Cheetham, executive chairman of Sunrise, said the agreement was “an important piece of the jigsaw” for the CS project and that the plant was “ideally located” for the markets the company was targeting.
In mid-afternoon trading on Friday, Sunrise shares were 15.2% higher at 0.13p.