Sunrise Resources Plc SALE OF NON-CORE PROJECTS (1623C)
June 17 2021 - 2:00AM
UK Regulatory
TIDMSRES
RNS Number : 1623C
Sunrise Resources Plc
17 June 2021
17 June 2021
SUNRISE RESOURCES PLC
("Sunrise" or "the Company")
SALE OF NON-CORE PROJECTS
The Company is pleased to advise that it has reached agreement
with AIM traded Power Metal Resources plc ("Power Metal") to sell
its Garfield and Stonewall Properties ("The Properties") in Nevada,
USA for the following consideration:
-- GBP20,000 cash,
-- and the issue of 2.25 million new Ordinary Shares in Power Metal ("the Shares").
The Shares will be issued by Power Metal at a price of 2.75
pence per share imputing a value of GBP61,875 for the share
consideration and GBP81,875 for the total consideration. The
closing mid- market price of the Power Metal shares on 15(th) June
was 2.4 pence per share ("Market Price").
The Garfield Project is held by the Company's 100% owned
subsidiary SR Minerals Inc. and the Stonewall Project is held by
Westgold Inc., also 100% owned by the Company. The sale will
generate a combined profit of GBP33,329 based on the GBP40,671
carrying value of the two projects as at 31 May 2021 and the Market
Price of the Shares.
Sunrise will retain a 2% Net Smelter Return Royalty in respect
of the Properties, half of which can be purchased by Power Metal
for US$1million for each property.
In addition, 2.25 million warrants will be issued to Sunrise,
each warrant entitling the holder to subscribe for one new Ordinary
Share in Power Metal at a price of 3.75 pence per share ("the
Warrants"). Should the volume weighted average price ("VWAP") of
Power Metal shares meet or exceed ten pence for five trading days,
Power Metal may serve notice of 14 calendar days on the Company to
exercise and pay for the Warrants or the Warrants will be
cancelled.
Funds raised by the transaction will be used for general working
capital purposes.
The Garfield and Stonewall Projects are non-core, early-stage
mineral exploration projects which were acquired at low cost by
Sunrise by claim staking on public lands. Limited exploration and
data evaluation carried out by the Company to-date has identified
targets for sediment hosted skarn and porphyry-style copper-gold
mineralisation at the Garfield Project and epithermal-style
gold-silver mineralisation at the Stonewall Project. The Company
has spent GBP2,356 on the two projects in the past 12 months.
Commenting today, Executive Chairman Patrick Cheetham said:
"This disposal of these two non-core assets is in line with
strategy and our continuing focus on our CS Pozzolan Perlite
Project in Nevada. Nevertheless, we consider these two projects to
be highly prospective and I am delighted that this agreement gives
us not only a profit on sale but also exposure to the upside
potential of these projects through our retained royalty interests.
We intend to be a holder of the Power Metal Resources shares for
the foreseeable future as we see a number of value catalysts for
this company over the next few months."
Further information:
Sunrise Resources plc Tel: +44 (0)1625 838 884
Patrick Cheetham, Executive
Chairman
Tel: +44 (0)207 628 3396
Beaumont Cornish Limited
Nominated Adviser
James Biddle/Roland Cornish
Tel: +44 (0)207 469 0930
Peterhouse Capital Limited
Broker
Lucy Williams/Duncan Vasey
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
Shares in the Company trade on AIM. EPIC: "SRES". Website:
www.sunriseresourcesplc.com
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