TIDMSRES
RNS Number : 2199P
Sunrise Resources Plc
30 August 2017
SUNRISE RESOURCES PLC
("Sunrise" or "the Company")
30 August 2017
SALE OF JUNCTION GOLD (-COPPER) PROJECT
Sunrise Resources plc, the AIM-traded company focusing on the
development of its CS Pozzolan-Perlite Project in Nevada, USA, is
pleased to advise progress in its strategy to valorise and
rationalise its project portfolio with the sale of its Junction
Gold (-Copper) Project in Humboldt County, northwestern Nevada, USA
("Junction Project" or "the Project").
Highlights:
-- Junction Project sold to TSX-V listed VR Resources Ltd
("VR"), by executed, binding Acquisition Agreement (dated 29
August, 2017).
-- Completion subject only to TSX approval prior to 30 September 2017.
-- Initial payment US$10,000 + 50,000 shares in VR due on Completion.
-- Further payment of 50,000 shares in VR should drilling take
place. Project returned to Sunrise if no drilling takes place
within 18 months of the date of the Acquisition Agreement.
-- Further payment of 250,000 shares in VR should VR complete
and file a 43-101 compliant report containing a resource estimate
for the Project.
-- Royalty payments on production equal to 3% of the Net Smelter
Return, subject to VR's right to buy up to half of the royalty
entitlement (1.5%) for US$500,000 per half-percent.
-- Terms of agreement, including royalty, extend to a 2 mile
area of influence from the current Project claim boundary.
Commenting today, Executive Chairman Patrick Cheetham said: "The
deal we are announcing today is the first of what we hope will be a
number of project disposals following our decision to focus the
Company on the development of the CS Project in Nevada. VR is a
recently listed and well-funded company run by seasoned industry
professionals with a track record of delivering value for
shareholders. We believe this agreement offers the Company a
"ground-floor" and well timed opportunity to participate in VR's
future successes, not just with the Junction Project, but also with
its other exciting exploration projects, most notably the
large-scale porphyry copper-gold system at its Bonita Property,
which VR is drilling this summer following some 2 1/2 years of
district-scale exploration targeting. Bonita is also located in
Humboldt County, and exploration at Junction will benefit from
synergies with VR's experience and focus at Bonita."
Further information
Sunrise Resources plc
Patrick Cheetham, Executive
Chairman Tel: +44 (0)1625 838 884
Northland Capital Partners
Limited
Nominated Adviser & Broker
Edward Hutton/David Hignell
John Howes/Rob Rees Tel: +44 (0)20 3861 6625
Beaufort Securities Limited
Joint Broker
Jon Belliss Tel: +44 (0)20 7382 8300
Additional Information
1. Intangible asset value of the Junction Project on 30
September 2016: GBP14,189. No significant expenditure has been
undertaken on the Junction Project since that date.
2. The price per VR ordinary share was C$0.27 at close of trading on 25 August 2017.
3. VR consideration shares will be held by the Company for a
minimum period of four months and one day following issue, a
requirement of National Instrument 45-102, Part 2, Section 2.5 (2)
3(ii), under Canadian Securities Law. Thereafter any sale of
consideration shares will be subject to ongoing review and any
funds released from future sales will be applied, together with the
cash element of the consideration, to advancing the Company's
pozzolan and perlite project interests.
About VR Resources Ltd (TSX: VRR.V)
VR Resources Ltd. ("VR") is a new listing on the TSX Venture
Exchange. It successfully closed a C$4.4M financing in early 2017
concurrent with the RTO and listing process, and is fully funded
for a two-year exploration strategy.
VR is the continuance of 4 years of active exploration by a
Vancouver-based private exploration company founded and run by two
geologists, Dr Michael Gunning and Darin Wagner, with diverse
experience in global mineral exploration, and a proven track record
in the junior sector, having steered the sale of three companies in
the past 5 years for an aggregate valuation in excess of C$1.3B.
The focus of VR is copper exploration in the western United States,
namely Nevada. The business model is value creation by discovery,
grounded by their experience in blue sky, grass roots exploration,
and leveraged by work on assets they own outright.
Dr Michael Gunning, President and CEO, has greater than 25 years
of industry experience with both provincial and federal Geological
Surveys, Teck Resources, as CEO of Hathor Exploration acquired by
Rio Tinto for C$654M in 2012, and Executive Chairman of Alpha
Minerals acquired in 2013 for C$180M. Darin Wagner, Chairman, also
has greater than 25 years of industry experience with Xstrata, Teck
Resources, and as a senior officer with New Millennium and Sydney
Resources (both in successful mergers) and as CEO of West Timmins
Mining, sold to Lake Shore Gold for C$454M. He is currently CEO of
Balmoral Resources.
(Source: www.vrr.ca)
About the Junction Gold (-Copper) Project
The Junction Gold (-Copper) Project is located in Humboldt
County in northern-most Nevada, with easy access from Highway
140.
There is no record of modern, systematic exploration on the
property, but there are a number of historic bulldozer trenches,
excavations and shallow prospecting tunnels, and reference to
exploration drilling by a prospecting syndicate sometime in the
1960's. The excavations are scattered in a northwest trending zone
over 1.2 sq.kms, and target copper mineralisation in quartz veins
and pegmatite dykes in shear zones hosted within Cretaceous age
granite.
The Company has identified a new gold zone on the property, some
250 m northwest from the historic copper zone. Most of the zone is
covered by soil, and its potential strike extensions are open in
both directions. During two separate field programs run by the
Company in 2014 and in 2015, five grab samples from the new quartz
vein trend over a strike length of 240 m contained gold with assays
ranging from 1.3 to 12.9 g/t gold, averaging 5.6 g/t gold. Two
samples of altered granite wall rock from near the reef assayed 1.6
and 3.8 g/t gold suggesting potential for more significant widths
of gold mineralisation.
Select samples from the copper zone assay up to 4.7% copper with
0.7 g/t gold. The higher grade copper mineralisation is associated
with high levels of bismuth (up to 180 ppm) and silver (up to 87
g/t). The gold zone samples are low in copper, bismuth and
silver.
The deposit has the characteristics of an intrusion related gold
deposit, but also of the orogenic gold type, a type that host some
of the largest gold endowments of any gold deposit type around the
world but which has not traditionally been the target of gold
exploration in Nevada.
Notes:
1. The news release may contain certain statements and
expressions of belief, expectation or opinion which are
forward-looking statements, and which relate, inter alia, to the
Company's proposed strategy, plans and objectives or to the
expectations or intentions of the Company's directors. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the control of the
Company that could cause the actual performance or achievements of
the Company to be materially different from such forward-looking
statements. Accordingly, you should not rely unduly on any
forward-looking statements and save as required by the AIM Rules
for Companies or by law, the Company does not accept any obligation
to disseminate any updates or revisions to such forward-looking
statements.
2. This announcement contains inside information.
3. The information in this release has been compiled and
reviewed by Mr. Patrick Cheetham (MIMMM, MAusIMM) who is a
qualified person for the purposes of the AIM Note for Mining and
Oil & Gas Companies. Mr. Cheetham is a Member of the Institute
of Materials, Minerals & Mining and also a member of the
Australasian Institute of Mining & Metallurgy.
Shares in the Company trade on AIM. EPIC: "SRES". Website:
www.sunriseresourcesplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBUGDICBDBGRC
(END) Dow Jones Newswires
August 30, 2017 02:00 ET (06:00 GMT)
Sunrise Resources (LSE:SRES)
Historical Stock Chart
From Apr 2024 to May 2024
Sunrise Resources (LSE:SRES)
Historical Stock Chart
From May 2023 to May 2024