It would be a waste if it was live rock because it would be very porous and worth about a couple dollars a pound even dry.
From what I know about lace rock is that it is not as porous as more live rocks and is meant more for decor in either fresh water or salt water. I think this should be moved back to where ever it came from since it is not live rock that you are dealing with.
This is a good deal and should work. It would need to be cycled though since it might still have dead bacteria that will decay and create a lot of
ammonia. I bet you will be able to wash the rock most of the way but the sand I think will retain the bacteria quite well...but if its going into a new tank it shouldn't be a problem other then taking a little longer to cycle.