Sunrise Resources announced on Friday that it has signed a non-binding memorandum of understanding which it says will "pave the way" for its first sales contract for perlite from its project in Nevada.
The MOU will see Sunrise and the unnamed other signee, which is understood to be an established purchaser and processor of raw perlite, negotiating a purchase and sale agreement under which the parties will commit to buy and sell a minimum quantity of raw perlite.

The purchaser will also provide commercial and logistical support to Sunrise Resources regarding perlite deposits at the CS and NewPerl projects.

Patrick Cheetham, executive chairman of Sunrise Resources, said: "This is a significant step forward for the company and a key value driver for the CS Project. The perlite deposits at our CS and NewPerl Projects represent new discoveries and are creating significant interest amongst consumers of raw perlite."

Both the CS and NewPerl projects are located in Nevada, with pozzolan tests underway at the less developed NewPerl site.

Pozzolan is a material which is often used in cement and concrete mixtures while perlite is a glassy raw material with applications in insulation, paint texturing, building materials, filter aids and aiding water retention in soil.

The current proposed offtake agreement would be almost sufficient by itself to justify the development of the AIM traded company's perlite deposits.

"The market for horticultural grades of perlite is particularly strong and we look forward to working with the Purchaser to bring the project into production. In the meantime our mine permitting work and pozzolan testwork is continuing apace," said Cheetham.

As of 0823 BST, Sunrise Resources' shares were up 47% at 0.19p.

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