Nevada Sunrise Receives Extension of Time for Water Rights in Clayton Valley, Nevada
Nevada Sunrise Receives Extension of Time
for Water Rights in Clayton Valley, Nevada
TSX Venture Exchange: NEV
VANCOUVER, BC
,
Nov. 3, 2021
/CNW/ -
Nevada Sunrise Gold Corp. ("Nevada Sunrise",
or the
"
Company
") (TSXV: NEV) (OTC: NVSGF) is pleased to announce that the Nevada Division of Water
Resources ("NDWR") has granted a one-year extension of time for the Company's
Nevada
water
right Permit 44411 (the "Permit"). The Permit is owned by a subsidiary company of Nevada Sunrise
and is currently the subject of a purchase and sale agreement with Cypress Development Corp. of
Vancouver, BC
,
Canada
(TSXV: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) ("Cypress").
The extension of time granted by the NDWR to
August 28, 2022
supports a successful closing of the
purchase of the Permit by Cypress, projected to occur in
December 2021
(the "Transaction"). The
Permit allows for the beneficial use of 1,770 acre/feet of water for mining, milling and domestic use
per year and will form an essential component of Cypress' plans for the development of a new
lithium mine in
Esmeralda County
.
The agreed purchase price for the Permit is
US$3.0 million
to be paid in a combination of cash and
Cypress' common shares (see Nevada Sunrise news release dated
May 10, 2021
). The purchase
price includes an initial non-refundable cash payment of
US$150,000
(paid), and a final payment of
US$2.85 million
on receipt of all necessary approvals and transfer of the Permit to Cypress (the
"Closing Payment"). The Closing Payment comprises
US$2.0 million
in cash and the issuance of
Cypress' common shares to the value of
US$850,000
(the "Share Issuance").
The Agreement is subject to terms and conditions customary for a transaction of this nature,
including TSX Venture Exchange approval of the Share Issuance. Net proceeds received by the
Company from the Transaction upon closing will be used to retire legal liabilities totaling
approximately
US$500,000
incurred during the water rights litigation from 2016 to 2019 (see Nevada
Sunrise news releases dated
May 16, 2016
and
September 30, 2019
), and payment of the balance
owing to the underlying vendor of the Permit of approximately
US$800,000
(for details of the
Company's purchase of the Permit see Nevada Sunrise news release dated
March 21
, 2016).
About the Permit
Nevada Sunrise, through its wholly-owned
Nevada
subsidiary company, Intor Resources Corporation
("Intor"), acquired the Permit from an underlying vendor in 2016. The Permit represents the largest
volume of permitted water available in the Clayton Valley, which is a fully-appropriated
hydrogeographic basin. With the exception of a single limited use permit, the NDWR has maintained
that no new water is available within the Clayton Valley basin for appropriation. Nevada Sunrise has
successfully defended the validity of the Permit in recent years, including negotiating a 2019
settlement agreement with Albemarle Corporation.
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, copper, cobalt and lithium exploration projects
located in the
State of Nevada, USA
.
The Company's key gold asset is a 20.01% interest in a joint venture with New Placer Dome Gold
Corp. (TSXV: NGLD) at the Kinsley Mountain Gold Project ("Kinsley Mountain") near
Wendover
where an extensive exploration program, including drilling and ground geophysics, concluded in late
November 2020
.
Kinsley Mountain
is a Carlin-style gold project hosting a National Instrument 43-101
compliant gold resource consisting of
418,000 indicated ounces of gold grading 2.63 g/t Au (4.95
million tonnes), and 117,000 inferred ounces of gold averaging 1.51 g/t Au (2.44 million
tonnes), at cut-off grades ranging from 0.2 to 2.0 g/t Au
1
.
1
Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A., dated June 21, 2021 with an effective date of May 5, 2021 and prepared by Michael M. Gustin, Ph.D., and
Gary L. Simmons, MMSA and filed under New Placer Dome Gold Corp.'s Issuer Profile on SEDAR (
www.sedar.com
).
Nevada Sunrise has right to earn a 100% interest in the Coronado VMS Project, located
approximately 48 kilometers (30 miles) southeast of
Winnemucca
. The Company owns a 15%
interest in the historic Lovelock Cobalt Mine and the Treasure Box copper properties, each located
approximately 150 kilometers (100 miles) east of
Reno
, with Global Energy Metals Corp. (TSXV:
GEMC) holding an 85% participating interest.
Nevada Sunrise owns 100% interests in the Jackson Wash and Gemini lithium projects, both of
which are located in
Esmeralda County
. The Company owns Nevada water right Permit 44411,
located within the Clayton Valley basin near Silver Peak,
Nevada
, and water permit 86863, located
in the Lida Valley basin, near Lida,
Nevada
.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking
information" with respect to Nevada Sunrise within the meaning of applicable Canadian securities
laws, including statements that address the potential sale of the Company's water rights, and the
potential for future development of a lithium resource and mineral production by Cypress. 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 sale of the Company's water
rights (the "Transaction"), reliance on technical information provided by third parties on the
Company's water rights or on Cypress' Clayton Valley lithium project, including access to historical
information on exploration, current exploration and development activities; changes in Cypress'
project parameters as its 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 due to pandemic; delays in obtaining governmental approvals,
financing or in the completion of the Transaction, as well as those factors discussed in the section
entitled "Risk Factors" in the Company's Management Discussion and Analysis for the Nine
Months Ended
June 30, 2021
, 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 07:30e 03-NOV-21