Placing to raise £1.2million

RNS Number : 7770W

Sunrise Resources Plc

25 November 2010

 



 

25 November 2010

           SUNRISE RESOURCES PLC

Placing to raise £1.2million

Sunrise Resources plc, the AIM-quoted diversified mineral exploration and development specialist, is pleased to announce that it has completed a placing to raise £1.2million before expenses via the issue of 60,000,000 new ordinary shares at 2p per share. The placing was oversubscribed.

The Company intends to use the funds for further drilling and exploration on the Company's Long Lake gold project in Canada and the Derryginagh barite project in SW Ireland, as well as for general exploration and working capital purposes.

Patrick Cheetham, Chairman of the Company, commented today: "We are very pleased to have received such good support from existing shareholders and new investors. The placing will allow us to accelerate our planned drill programmes at the Long Lake gold project in particular without the hiatus that a deferred fundraising would have involved."

Application will be made for the new ordinary shares to be admitted to trading on AIM. It is anticipated such trading will commence on 10 December 2010. Following the issue of the 60,000,000 shares there will be 308,866,013 ordinary shares in issue.

Further information:

Sunrise Resources plc                                                                      Tel:  [phone]

Patrick Cheetham, Executive Chairman                                            Mobile: [phone]

www.sunriseresourcesplc.com

Northland Capital Partners Limited                                                  Tel: [phone]

Gavin Burnell / Rod Venables

Charles Vaughan (Broking)

Yellow Jersey PR                                                                              Tel: [phone]

Dominic Barretto

Notes to Editors:

About Sunrise Resources plc

Sunrise Resources plc was formed to acquire the diamond exploration interests of Tertiary Minerals plc in 2005. Since then the Company has made a number of new kimberlite discoveries in Finland and expanded its portfolio of diamond exploration interests to include a new project near Cue in Western Australia.

In 2009 the Company made a strategic decision to diversify its project interests and has since acquired interests in the Long Lake Project as well as the Derryginagh Barite mine in south-west Ireland. Derryginagh was worked for barite from 1864-1922, supplying white barite to the local paint industry. Barite, the mineral form of the chemical barium sulphate, is used as a high-value industrial filler in, for example, paint plastics, brake linings and acoustic panels.  The Company is targeting a modest scale mining operating at Derryginagh that could, in time, produce a valuable cash flow for the Company.

Most recently, in May 2010, the Company secured an option agreement for the Long Lake Gold-Nickel-Copper-PGM project 20km south-west of the City of Sudbury, Ontario (Canada). The Long Lake Gold Mine produced 57,000 ounces of gold from over 200,000 tonnes of ore mined in the periods 1910-1916 and 1932-1939 and has considerable untested gold potential. The claims also cover potential extensions to the currently producing Copper Cliff dyke system at the heart of the World's most productive nickel-copper mining complex.  A drilling programme for gold has now started.

 

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