Cypress Development Corp (TSXV: CYP) has entered into a binding letter of intent to acquire water rights within the Clayton Valley of Nevada. The rights are being purchased from that of Nevada Sunrise Gold Corp (TSXV: NEV).
The transaction will see Cypress pay a total figure of US$3.0 million for the rights, to be paid in both cash and shares. A total of $2.15 million is to be paid via cash, including an initial $25,000 deposit as well as a $125,000 payment after a 45 day due diligence period. The remainder will then be paid in the form of Cypress shares.
The water rights are notable, given that the Nevada Division of Water Resources has stated that no new water is available in Valley for appropriation. Albemarle Corp currently maintains a water permit in the region, with this permit being acquired by Cypress believed to be one of the few permits issued in the region. The permit allows for 1,770 acre-feet of water to be used for mining, milling and domestic use each year.
The permit represents a “significant portion” of the water supply identified as being required under the firms prefeasibility study, and indicates that the company is pushing forward towards production at the property.
Cypress Development last traded at $1.11 on the TSX Venture.
Information for this briefing was found via Sedar and Cypress Developments. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
