LONDON - Sunrise Resources Plc announced today that Tolsa USA Inc. has decided not to proceed with the option to purchase the Pioche Sepiolite Project in Nevada, USA. The option, granted on June 28, 2022, and extended on December 27, 2023, for an additional 12 months, was nearing its conclusion with ongoing negotiations over the terms of a 3% royalty to Sunrise and the transfer of project claims.
The discussions between Sunrise and Tolsa have not resulted in a final agreement, particularly regarding the calculation and verification of the production royalty. Tolsa has encountered difficulties in correlating specific sepiolite grades between drill holes, which has impacted the valuation of the large sepiolite clay deposits identified at the site.
Despite these challenges, Tolsa has expressed interest in exploring alternative arrangements for the project. Sunrise Resources, advised by Mr. Tom Powell, a veteran in industrial minerals with over 30 years of experience, anticipates verifying the project's value and taking possession of all remaining samples.
The company has received $150,000 in option fees from Tolsa, while its own investment in the Pioche Project has been around £50,000. Sunrise now plans to market the project to other interested parties, some of whom have already shown interest.
Sunrise's Executive Chairman, Patrick Cheetham, commented that Tolsa's decision does not reflect on the project's value and that the company looks forward to providing further information to shareholders and potential investors once more data is available.
The information for this report is based on a press release statement by Sunrise Resources Plc.
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