LONDON: Sunrise Resources plc has finalized the sale of 29 diatomite mining claims in Nevada’s Crow Springs area to Dicalite Management Group for $150,000, a news release noted.
The initial payment of $75,000 has been completed, with the remainder due upon Dicalite’s submission of a mine plan to the Bureau of Land Management.
The claims, which are being assessed by Dicalite Management as a potential diatomite source for its Basalt processing plant, will still yield a \$6/dry ton royalty to Sunrise. Additionally, Dicalite retains the option to buy out the royalty for $500,000 after a decade.
Dicalite, a private entity with extensive mining and processing operations across the US and Europe, did not acquire Sunrise’s County Line Diatomite Project claims as part of this deal.
Commenting today, Executive Chairman Patrick Cheetham said: “We are pleased to sell these non-core claims and add another royalty interest to our portfolio. 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.”
“We believe that Dicalite Management has the ability and ambition to turn this royalty to account in a relatively short time frame with production slated for its Basalt, Nevada processing plant.”