Cypress Development Corp. entered into a water rights purchase and sale agreement with Intor Resources Corp., a subsidiary of Nevada Sunrise Gold Corp., for the purchase of Intor’s Water Rights Permit in Clayton Valley, Nevada. The permit allows for 1,770 acre-feet of water per year for mining, milling and domestic use.

“With the completion of the agreement, Cypress is a big step closer to securing water rights for our Clayton Valley lithium project,” President and CEO Bill Willoughby said. “Cypress and Nevada Sunrise are now moving forward to complete the parties’ obligations under the agreement. For Cypress’ lithium project, this is a meaningful development because water is a vital resource to the project. This purchase has the potential to secure the project’s future water requirements.”

The purchase price for the permit is $3 million to be paid in a combination of cash and Cypress common shares. The purchase price includes an initial non-refundable cash payment of $150,000, and a final payment of $2.85 million on receipt of all necessary approvals and transfer of the permit to Cypress. The closing payment consists of $2 million in cash and $850,000 in Cypress common shares. The agreement is expected to close during the fourth quarter of 2021.

Intor’s Nevada water Permit 44411 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 Corp.