Nevada Sunrise Announces Reversal of Nevada Water Rights Forfeiture and Notice of Administrative Hearing
Nevada Sunrise Announces Reversal of
Nevada Water Rights Forfeiture and Notice of
Administrative Hearing
TSXV: NEV
VANCOUVER
,
Jan. 28, 2019
/CNW/ -
Nevada Sunrise Gold Corporation
("Nevada Sunrise" or the
"Company") (TSXV: NEV) is pleased to announce that the Fifth Judicial District Court of
Nevada
(the
"Court") has issued an order vacating a ruling of forfeiture against the Company's water right made
in 2016 by the State Engineer's office of the Nevada Division of Water Resources ("NDWR"). The
matter has been remanded back to the State Engineer for a full administrative hearing on the
question of forfeiture that is scheduled for
April 1, 2019
(the "Hearing"). At the Hearing, Nevada
Sunrise intends to present historical evidence of beneficial use of its water right Permit 44411 (the
"Permit") located in the Clayton Valley basin, and present arguments that the State Engineer did not
provide the required notice prior to declaring the Permit forfeited.
"Nevada Sunrise has persevered for over two years against the surprise forfeiture of the Permit by
the
State of Nevada
," said
Warren Stanyer
, President and CEO of the Company. "Other water
rights forfeitures in
Nevada
similar to our case have recently been reversed on appeal or remand,
and we look forward to receiving equal application of the law."
In
June 2016
, Albemarle Corporation of
Charlotte, North Carolina
, USA ("Albemarle") (NYSE: ALB),
filed a motion with the NDWR to forfeit the Permit held by the Company's wholly-owned subsidiary,
Intor Resources Corp. ("Intor").
Albemarle
argued that the Permit was automatically forfeited by
claiming that it had not been used for a five-year period.
Albemarle
, the world's largest producer of
lithium chemical products, currently operates the only producing lithium mine in
the United States
at
Silver Peak,
Nevada
, in the northern Clayton Valley.
Intor opposed
Albemarle's
forfeiture motion, and requested a hearing to present evidence to defend
its Permit. Intor argued that the State Engineer must first provide a notice prior to initiating forfeiture
proceedings.
However, the State Engineer did not give Intor the benefit of a hearing, and on
November 30, 2016
,
granted
Albemarle's
motion and issued the ruling forfeiting the Permit. Since the NDWR ruling, Intor
has methodically gathered evidence of historical water use in order to defend the validity of the
Permit. Intor's appeal was heard in April and May of 2018, after which the Court ordered that the
forfeiture ruling be vacated and the matter remanded for the Hearing. Members of the public are
invited to attend the Hearing, which is scheduled for
8:30 AM (Pacific Time)
on
April 1, 2019
at the
offices of the NDWR,
Tahoe Hearing Room
, 901 South Stewart, Second Floor,
Carson City,
Nevada
.
About the Permit
Nevada Sunrise acquired the Permit, which allows for 1,770 acre-feet of water use for mining and
milling per year, from an arms-length vendor (the "Vendor") prior to commencing exploration for
lithium brines in the Clayton Valley. In
December 2015
, Nevada Sunrise received a written appraisal
from an independent appraiser certified in the
State of Nevada
valuing the Permit at
US$1.42 million
.
According to the appraisal report, the Clayton Valley basin is currently "over-appropriated" and that
any new applications to appropriate water in an over-appropriated basin would be carefully reviewed
by the NDWR. Consistent with the conclusions of the appraisal report, with the exception of one
application to appropriate 50 acre-feet annually for a five-year period, all applications for new water
rights allocations made in the past two years by other junior lithium explorers in the Clayton Valley
have been denied by the NDWR.
Nevada Sunrise exercised its option for acquisition of the Permit by executing a definitive purchase
agreement (the "Agreement") with the Vendor (see Nevada Sunrise news release dated
March 20,
2016
). As consideration for its purchase of the Permit, to date Nevada Sunrise has paid to the
Vendor
US$392,500
in cash by installments toward an agreed purchase price of
US$1.3 million
, and
has issued 1,100,000 common shares (of an agreed 2.0 million shares to be issued over a 5-year
period) and a series of common share purchase warrants exercisable over a 5-year period. The
common shares and unexpired warrants issued by the Company are currently being held in trust for
the Vendor until all legal challenges to the validity of the Permit have ceased. Should the Permit
ultimately be forfeited, in accordance with subsequent amendments to the Agreement, the Vendor
has agreed to forego all of the issued common shares and unexpired warrants and return
US$317,500
of cash payments made by the Company.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a strong technical team based in
Vancouver, BC
,
Canada
, that holds interests in gold, cobalt, copper and lithium exploration projects
located in the
State of Nevada, USA
.
The Company's key gold asset is a 21% interest in a joint venture with Liberty Gold Inc. (TSX: LGD)
at the Kinsley Mountain Project ("Kinsley Mountain") near
Wendover
, with the property subject to a
3.0% net smelter returns royalty. For further information on
Kinsley Mountain
, including a technical
report compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects
entitled "Updated Technical Report and Estimated Minerals Resources for the Kinsley Project" (the
"Report"), effective
October 15, 2015
. The Report dated
December 16, 2015
was subsequently
filed on SEDAR and can be accessed at
http://www.sedar.com
.
Nevada Sunrise has the right to earn a 100% interest in the historic Lovelock Cobalt Mine and
Treasure Box
copper properties, located approximately 150 kilometers (100 miles) east of
Reno
,
which are currently under option to Global Energy Metals Corp. (TSXV: GEMC), who can earn up to
an 85% participating interest. In
September 2018
, the Company acquired the right to earn a 100%
interest in the Coronado VMS Project, located in
Pershing County
, approximately 48 kilometers (30
miles) southeast of
Winnemucca
, which was recently the subject of a diamond drilling program by
the Company (see Nevada Sunrise news release dated
January 10, 2019
).
Nevada Sunrise owns 100% interests in the Neptune,
Jackson Wash
and Aquarius lithium projects, a
50% interest in the Gemini lithium project (Kore Mining Ltd., (TSXV: KORE), formerly Eureka
Resources Inc., holds a 50% interest), and a 100% interest in the Atlantis lithium project, currently
under option to American Lithium Corp. (TSXV: LI), all of which are located in
Esmeralda County
.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking
information" with respect to Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the
meaning of applicable Canadian securities laws, including statements that address the potential
acquisition of water rights, the potential restoration of its water rights, the potential results of the
relocation of water rights, the potential value or importance of the Company's water rights for
mining and milling in the Clayton Valley, future mineral production, reserve potential, potential
results of exploration drilling, the future price of lithium, potential quantity and/or grade of minerals,
potential size of a mineralized zone, potential expansion of mineralization, the timing and results of
future resource estimates, or other study, proposed exploration and development of our exploration
properties and the estimation of mineral resources. Forward-looking information is often, but not
always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate",
"expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar
expressions, or describes a "goal", or variation of such words and phrases or state that certain
actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be
achieved. These statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievement of Nevada Sunrise to differ
materially from those anticipated in such forward-looking information.
Such factors include, among others, risks related to the potential acquisition and/or transfer of
water rights including challenges from third parties; that the result of the scheduled water rights
hearing may not be successful, or if successful, the amount of water allowed for beneficial use
may be reduced; changes in project parameters as plans continue to be refined; current economic
conditions; future prices of commodities; possible variations in grade or recovery rates; failure of
equipment or processes to operate as anticipated; the failure of contracted parties to perform;
labor disputes and other risks of the mining industry; delays in obtaining governmental approvals,
financing or in the completion of exploration, as well as those factors discussed in the section
entitled "Risk Factors" in the Company's Management Discussion and Analysis for the Year Ended
September 30, 2018
, which is available under Company's SEDAR profile at
www.sedar.com
Although Nevada Sunrise has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in forward-looking information,
there may be other factors that cause actions, events or results not to be as anticipated, estimated
or intended. There can be no assurance that such information will prove to be accurate as actual
results and future events could differ materially from those anticipated in such statements. Nevada
Sunrise disclaims any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise. Accordingly, readers should not
place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change
after such date. Except as otherwise indicated by Nevada Sunrise, these statements do not reflect
the potential impact of any non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations or other transactions that may
be announced or that may occur after the date hereof. Forward-looking statements are provided for
the purpose of providing information about management's current expectations and plans and
allowing investors and others to get a better understanding of our operating environment. Nevada
Sunrise does not undertake to update any forward-looking statements that are included in this
document, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of
accuracy of this release. The Securities of Nevada Sunrise Gold Corporation have not been
registered under the United States Securities Act of 1933, as amended, and may not be
offered or sold within
the United States
or to the account or benefit of any U.S. person.
SOURCE
Nevada Sunrise Gold Corporation
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For further information:
Warren Stanyer, President and Chief Executive Officer, Telephone: (604)
428-8028, Facsimile: (604) 684-9365, email: [email protected]
CO: Nevada Sunrise Gold Corporation
CNW 08:30e 28-JAN-19