Sunrise Resources grants Kinross lease for its US mining claims
Diamond explorer Sunrise Resources has granted Canadian gold miner Kinross Gold a lease and an option to buy its 25 Jackson Wash mining claims in Nevada, in the US.
Sunrise, however, will retain its right to mine perlite on the claims during the lease and option period.
In addition to hosting large surface occurrences of perlite, the claims are located adjacent to the historic Montezuma silver, gold and mercury mining centre.
Under the terms of the agreement, Kinross has been granted a nine-year mining lease over the claims and an option to buy the claims at any time during the term of the lease for $500 000, and the granting to Sunrise of a 2.5% net smelter royalty.
Kinross will make payments to Sunrise until the lease expires or is terminated or the option is exercised. These payments will comprise $5 000 a year in advance in years one to three; $10 000 a year in advance in years four to six; and $15 000 a year in advance in years seven to nine.
Within 30 days of signing the agreement, Kinross will pay Sunrise the Year 1 lease payment, together with a $10 000 signing bonus and reimbursement of claim filing fees of $4 437.
All of the abovementioned payments made by Kinross will be considered as advance payments of the royalty, should the royalty become payable.
Kinross may also opt to buy 60% of the royalty for $1.5-million in three increments.
"This agreement to lease and option the Jackson's Wash claims continues our strategy to divest or farm-out our noncore projects, while retaining upside exposure to those projects through retained royalties.
"It follows the recent sale of the Garfield and Stonewall projects in Nevada to Power Metal Resources. Importantly, we retain the rights to mine perlite at Jackson's Wash in the meantime, as we continue our focus on our CS Natural Pozzolan and Perlite project," comments Sunrise chairperson Patrick Cheetham.
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