Sunrise Resources plc has sold its 29 non-core diatomite mining claims in Crow Springs, Nevada to Dicalite Management Group.
ROYALTIES
The company received US$75,000 on transfer of the claims with the balance of the total sale price of $150,000 payable when Dicalite submits a mine plan of operations to the Bureau of Land Management.
Dicalite is evaluating the surface deposit of diatomite on the claims, which could be a feed source for its basalt diatomite processing plant some 85km distance by road.
Under the terms of the deal, Sunrise retains a royalty of US$6/dry ton of diatomite mined and removed from the claims.
Dicalite will have an option to purchase the royalty for $500,000 after the 10th anniversary of the first royalty payment.
Sunrise said that the agreement excluded its County Line diatomite project claims which the company retains.
Executive chairman Patrick Cheetham added: “The sale is consistent with our policy to generate 100% owned attractive exploration projects at very low cost to be sold or joint ventured to other companies, and to mitigate risk from over exposure to any one project or resource.
“We have already done this successfully with our Garfield and Stonewall projects with additional royalties built into the lease and option agreements on our Jackson’s Wash and Pioche projects.
“Our out-of-pocket expenses to date in securing and maintaining the Crow Springs diatomite claims are less than US$25,000.”
Garfield and Stonewall were sold to Power Metal Resources plc and are now in its spin-out Golden Metal Resources plc’s portfolio.
Sunrise noted that diatomite is formed by the accumulation in marine and freshwater lake environments of vast quantities of skeletal material from single-celled aquatic algae called diatoms.
Diatoms have hollow and lattice-like silica skeletons, of which the mass accumulation during algal blooms forms a rock with very high porosity suitable for use, among other things, as a filtration medium.