Nevada Sunrise Signs Definitive Agreement for the Sale of Water Rights in Clayton Valley, Nevada
Nevada Sunrise Signs Definitive Agreement for
the Sale of Water Rights in Clayton Valley,
Nevada
TSX Venture Exchange: NEV
VANCOUVER, BC
,
Sept. 9, 2021
/CNW/ -
Nevada Sunrise Gold Corp. ("Nevada Sunrise",
or the
"
Company
") (TSXV: NEV) (OTC: NVSGF) is pleased to announce that it has executed a definitive
water rights purchase and sale agreement (the "Agreement") with Cypress Development Corp. of
Vancouver, BC
,
Canada
(TSX-V:
CYP
) (OTCQB:
CYDVF
) (
Frankfurt
:
C1Z1
) ("Cypress") for the
sale to Cypress of its water rights ("the Permit") in Clayton Valley,
Nevada
(the "Transaction"). The
Transaction represents a major milestone for Cypress' Clayton Valley Lithium Project, near Silver
Peak,
Nevada
and provides an opportunity for Nevada Sunrise to share in future success gained by
Cypress' efforts to develop a new lithium mine in
Esmeralda County
.
Terms of the Agreement
The 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. Nevada Sunrise and Cypress are
now working towards receiving necessary approvals from the
State of Nevada
, including the
extension of time required for the Permit, the receipt of which is projected to occur during the fourth
quarter of 2021.
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 water rights of approximately
US$800,000
(see Nevada Sunrise news release dated
March 21
, 2016).
About the Water Rights
Nevada Sunrise, through its
Nevada
subsidiary company, Intor Resources Corporation ("Intor"),
acquired
Nevada
water Permit 44411 from an underlying vendor in 2016. The Permit allows for the
beneficial use of 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 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 Gold Corporation ("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, 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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%SEDAR: 00026824E
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 09-SEP-21