Sunrise Resources PLC (AIM:SRES) said it agreed to grant a Kinross Gold Corp unit a lease and option to buy the company's 25 Jackson's Wash mining claims in Nevada, US.
Under the agreement, Kinross Gold USA Inc has been granted a nine-year mining lease over the claims and an option to buy the claims during the term of the lease for US$500,000 (£368,000) and grant Sunrise a 2.5% net smelter royalty.
Sunrise said it retained the right to mine perlite on the claims during the lease/option period.
Kinross will pay Sunrise US$5,000 a year in advance for years 1-3; US$10,000 annually in advance for years 4-6; and US$15,000 annually in advance for years 7-9. The payments will be considered as advance payments of the royalty.
"This agreement to lease and option the Jackson's Wash claims continues our strategy to divest or farm-out our non-core projects whilst retaining upside exposure to those projects through retained royalties,” said Sunrise chairman Patrick Cheetham. “It follows the recent sale of the Garfield and Stonewall projects in Nevada to Power Metal Resources.”
“Importantly, we retain the rights to mine perlite at Jackson's Wash in the meantime, as we continue our focus on our CS natural pozzolan and perlite project."