Cypress Development Enters LOI for the Purchase of Water Rights in
Suite 1610 - 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4
www.cypressdevelopmentcorp.com
TSX Venture Exchange Symbol: CYP
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
NEWS RELEASE
May 10, 2021
Cypress Development Enters LOI for the Purchase of Water Rights in
Clayton Valley, Nevada
Vancouver, BC - Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF)
(Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to announce that it has
entered into a Letter Of Intent (“LOI”) with Intor Resources Corp. (“Intor”), a wholly
owned subsidiary of Nevada Sunrise Gold Corp. (“Nevada Sunrise”), for the purchase
of Intor’s water rights in Clayton Valley, Nevada (the “Transaction”). The Transaction
is subject to the terms of the LOI and is a major milestone towards the fulfillment of
the water supply requirements of Cypress’ Clayton Valley Lithium Project.
Terms of the LOI
The Transaction is subject to the satisfactory outcome of a due diligence by Cypress,
the parties entering into a definitive agreement, settlement of the US$3 million
purchase price to be paid in a combination of cash and Cypress shares (the “Purchase
Price”) and terms customary for a transaction of this nature . The Purchase Price is
payable as to $25,000 non-refundable payment on entering the LOI, $125,000 non-
refundable payment upon completion of a 45-day due diligence period, unless notice
of termination by Cypress is served prior to expiry of the 45-day period, and US$2.85
million on receipt of all necessary approvals and transfer of the water rights to Cypress.
This closing payment will comprise US$2 million in cash and the issue of Cypress
common shares to the value of US$850,000 . The Transaction is subject to TSX V
acceptance and is expected to close during the third quarter of 2021.
About the Water Rights
Nevada Sunrise, through its U.S. subsidiary, Intor Resources Corp., acquired the
water rights in 2016 under Permit 44411. The permit allows for 1,770 acre-feet of water
for mining, milling and domestic use per year . This amount represents the largest
volume of permitted water available in Clayton Valley , which is a fully appropriated
hydrogeographic basin. With the exception of a single limited use permit, the Nevada
Division of Water Resources has maintained that no new permits will be made
available for water appropriation within the Clayton Valley basin. Nevada Sunrise has
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successfully defended its water rights in recent years, including a 2019 settlement
agreement with another party.
“Groundwater in the southwest U.S. is a limited resource, and it was known early on
that acquiring water rights would be a sensitive and critical step for Cypress’ lithium
project” said Cypress CEO Bill Willoughby. “We believe the timing is right to enter into
this agreement given the advanced stage of our project.”
“The water under this permit will provide a significant portion of the fresh water supply
called for under our project’s Prefeasibility Study. We are very conscious, however, of
the possible impacts and resources needed to support a new mine and are actively
pursuing ways to conserve water. The data collected from our recent testing using a
chloride leaching approach , for example. shows a large reduction in water use is
possible. Th is LOI is a major step for Cypress in securing the water needs of the
project.”
About Cypress Development Corp.:
Cypress Development Corp. is a publicly traded exploration company focused on
developing the Company’s 100% -owned Clayton Valley Lithium Project in Nevada.
Exploration and development by Cypress discovered a world-class resource of lithium-
bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only
lithium brine operation. The size of the resource makes the Clayton Valley Project a
premier American source that has the potential to impact the supply of lithium for the
fast-growing energy storage battery market.
Clayton Valley Lithium Project, Nevada claims map:
https://www.cypressdevelopmentcorp.com/site/assets/files/3573/cyp_cypress_-
_albemarle_properties_map.jpg
To find out more about Cypress Development Corp. (TSX-V: CYP), visit our website
at www.cypressdevelopmentcorp.com.
CYPRESS DEVELOPMENT CORP.
“Dr. Bill Willoughby”
WILLIAM WILLOUGHBY, PhD., PE
Chief Executive Officer
For further information contact myself or:
Don Myers
Cypress Development Corp.
Director, Corporate Communications
Telephone: 604-639-3851
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE
CONTENT OF THIS NEWS RELEASE.
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This release includes certain statements that may be deemed to be "fo rward-looking
statements". All statements in this release, other than statements of historical facts, that
address events or developments that management of the Company expects, are forward -
looking statements. Although management believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance, and actual results or developments may differ materially
from those in the forward-looking statements. The Company undertakes no obligation to update
these forward -looking statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual results to differ materially from those
in forward-looking statements, include market prices, exploration and development successes,
continued availability of capital and financing, and general economic, market or business
conditions. Please see the public filings of the Company at www.sedar.com for further
information.