P2 Gold Secures Water Rights for the Gabbs Project
P2 Gold Secures Water Rights for the Gabbs
Project
VANCOUVER, BC
,
March 25, 2026
/CNW/ -
P2 Gold Inc.
("P2" or the "Company") (TSXV: PGLD)
(OTCQB: PGLDF) reports that its wholly-owned subsidiary, P2 Gabbs Inc. ("P2 Gabbs"), has
entered into a letter agreement (the "Letter Agreement") dated March 19, 2026 with an arm's length
private vendor to acquire water rights in the Gabbs Basin of Nevada. The agreement remains
subject to the execution and delivery of a definitive agreement (the "Definitive Agreement") and the
approval of the TSX Venture Exchange (the "Exchange"). The Company has also agreed to settle
outstanding shareholder working-capital loans with certain insiders of the Company.
Pursuant to the Letter Agreement, P2 will acquire 2,500 acre-feet per year of water rights (the
"Water Rights"), a water supply that exceeds the current projected process water requirements for
the Gabbs Project and ensures upside capacity in anticipation of potential project expansion.
Letter Agreement Key Terms
The key terms of the Letter Agreement are:
P2 Gabbs will acquire rights to 2,500 acre-feet per year of water rights in the Gabbs Basin of
Nevada;
The purchase price payable to the vendor for the Water Rights is US$4,250 per acre-foot per
year for a total of US$10.625 million, with US$100,000 (the "Definitive Payment") payable on
the signing of the Definitive Agreement and US$10.525 million payable within 30 days following
the Nevada Division of Water Resources ("NDWR") approving the transfer of the Water Rights
to P2 Gabbs;
US$100,000 payable to the vendor each year on the anniversary of the Definitive Payment if the
NDWR has not approved the transfer of the Water Rights to P2 Gabbs at that time; and
The vendor shall be responsible for filing the documentation with NDWR for the transfer of the
Water Rights to P2 Gabbs for use at the Gabbs Project, the cost of which filing will be paid by
P2 Gabbs.
The anticipated time frame for NDWR approval of the transfer of the Water Rights to P2 is six to
twelve months, coinciding with the projected completion of the Gabbs feasibility study at the end of
the fourth quarter.
"With water rights secured for the Gabbs Project we have achieved a major de-risking milestone,"
commented Joe Ovsenek, President and CEO of P2.
"We will now turn our attention to other long-
lead items required for production at Gabbs.
Approval of the transfer of the water rights is
expected by yearend, which fits well with the expected completion of the Gabbs Feasibility Study in
the fourth quarter of this year."
Total make up water requirements for the process facilities at Gabbs have been estimated at 215
m
3
per hour (approximately 1,500 acre-feet per year) at a processing rate of 9 million tonnes per
year. See the technical report entitled "
NI 43-101 Technical Report, Preliminary Economic
Assessment, Gabbs Heap Leach and Mill Project, Nye County, Nevada, USA
", with an effective
date of October 7, 2025 (the "Gabbs Technical Report"). The Gabbs Technical Report is available
under the Company's profile on SEDAR+ at
www.sedarplus.com
and on the Company's website at
www.p2gold.com
.
Shares for Debt
P2 has agreed with certain insiders of P2 to settle $503,357.63 in shareholder loans previously
provided for working capital for 671,143 P2 Shares (the "Loan Shares") at a deemed price of $0.75
per share (the "Loan Settlement"). The Loan Settlement remains subject to approval of the
Exchange. The Loan Shares to be issued in respect of the Loan Settlement will be subject to a hold
period of four months. The Loan Settlement with such insiders will be a "related party transaction"
under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Loan Settlement with each of these individuals is exempt from the
minority approval and formal valuation requirements of MI 61-101 pursuant to subsections 5.5(a) and
5.7(1)(a) of MI 61-101 as neither the fair market value of the debt, nor the fair market value of the
shares to be issued in settlement of the debt, exceeds 25% of P2's market capitalization.
Qualified Person
Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Qualified Person, as
defined by National Instrument 43-101, responsible for the Gabbs Project. Mr. McNaughton has
reviewed, verified, and approved the scientific and technical information in this news release.
About P2 Gold Inc.
P2 Gold is a mineral exploration and development company focused on advancing its gold-copper
Gabbs Project on the Walker Lane Trend in Nevada, where work to support a feasibility study is
underway. A positive preliminary economic assessment has outlined a long-life, mid-size mine at
Gabbs with annual average production of 109,000 ounces gold, 15,000 tonnes copper over a 14.2-
year mine life. The Gabbs Project has excellent infrastructure with access via paved Hwy 361, and
power and water on site. All zones on the property remain open and an infill and expansion drill
program is underway. On completion of drilling, an updated Mineral Resource estimate will be
prepared for Gabbs, which is expected to be completed in the third quarter.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities
laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking
information" includes statements that use forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or
comparable terminology. Such forward-looking information includes, without limitation, information
with respect to the Company's expectations, strategies and plans for the Gabbs Project including the
Company's planned expenditures and exploration activities, the Loan Settlement and issuance of the
Loan Shares.
Forward-looking information is not a guarantee of future performance and is based upon a number
of estimates and assumptions of management at the date the statements are made as well as the
other assumptions disclosed in this news release. Furthermore, such forward-looking information
involves a variety of known and unknown risks, uncertainties and other factors which may cause the
actual plans, intentions, activities, results, performance or achievements of the Company to be
materially different from any future plans, intentions, activities, results, performance or achievements
expressed or implied by such forward-looking information and risks associated with mineral
exploration, including the risk that actual results and timing of exploration and development will be
different from those expected by management. See "Risk Factors" in the Company's annual
information form for the year ended December 31, 2025, dated March 19, 2026 filed on SEDAR+ at
www.sedarplus.com
for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any
revisions to forward-looking information contained in this press release to reflect events or
circumstances after the date hereof.
SOURCE P2 Gold Inc.
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For further information:
For further information, please contact: Joseph Ovsenek, President &
CEO, (778) 731-1055; Michelle Romero, Executive Vice President, (778) 731-1060; P2 Gold Inc.,
Suite 1290, 999 West Hastings Street, Vancouver, BC, V6C 2W2, [email protected] (SEDAR filings:
P2 Gold Inc.)
CO: P2 Gold Inc.
CNW 05:00e 25-MAR-26