LONDON (ShareCast) - (Sharecast News) - Sunrise Resources announced the signing of an option agreement on Monday, granting a US-based company the exclusive right to acquire its Hazen Project in Nevada for $0.8m in cash.
The AIM-traded firm said the agreement, entered into by Sunrise's wholly-owned US subsidiary SR Minerals, included an initial 90-day option period.

It said the option would begin once the US Bureau of Land Management approves the optioner's notice of intent to conduct exploration, which was submitted in June and typically takes around 30 days to process.

The initial period could be extended by up to three successive 30-day terms for additional payments of $7,500 each.

An upfront option fee of $20,000 was payable immediately to SR Minerals.

The agreement would allow the optioner to conduct exploration activities on the property during the option period, and included standard provisions on warranties, indemnities, confidentiality, and insurance.

If the optioner elected to exercise the option, the parties would enter into a formal sale contract.

Sunrise noted that any sale would constitute a substantial transaction under AIM rules, with further details to be provided to shareholders at that time.

"We have been discussing the Hazen project with the optioner for some time, so we are pleased to bring these talks to fruition," said executive chairman Patrick Cheetham.

"Should the option be exercised, the proceeds will be used for additional working capital and the further advancement of the company's project portfolio."

Cheetham said Hazen was an early stage project, and so non-core for Sunrise.

"Agreements like this highlight the deep value contained within the project portfolio which we are progressively looking to valorise."

As of 30 March, the Hazen Project had a book value of £23,940, with £2,135 spent during the prior six months.

At 1228 BST, shares in Sunrise Resources were up 10.83% at 0.02p.

Reporting by Josh White for Sharecast.com.

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