- Cypress Development (CYP) has announced a letter of intent to purchase water rights in Clayton Valley, Nevada from Intor Resources, a subsidiary of Nevada Sunrise Gold Corporation
- The purchase will be made up of a combination of cash and shares for a total consideration of US$3 million
- Once the agreement is completed, the water rights will partially fulfill Cypress Development’s water supply requirements at its Clayton Valley lithium project
- Cypress Development (CYP) closed trading at $1.11 per share
Cypress Development (CYP) will purchase the water rights in Clayton Valley, Nevada from Intor Resources.
Once the agreement is completed, the water rights will partially fulfill Cypress Development’s water supply requirements at its Clayton Valley lithium project.
The purchase will be made up of a combination of cash and shares for a total consideration of US$3 million, and the closing of the agreement is subject to a satisfactory outcome of due diligence completed by Cypress.
Intor Resources, a subsidiary of Nevada Sunrise Gold Corporation, acquired the water rights in 2016 under a permit that allows for 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, a fully appropriated hydrogeographic basin.
Cypress CEO Bill Willoughby commented,
“Groundwater in the southwest U.S. is a limited resource, and it was known early on that acquiring water rights would be a sensitive and critical step for Cypress’ lithium project.”
He added,
“The water under this permit will provide a significant portion of the fresh water supply called for under our project’s prefeasibility study. We are very conscious, however, of the possible impacts and resources needed to support a new mine and are actively pursuing ways to conserve water. The data collected from our recent testing using a chloride leaching approach, for example, shows a large reduction in water use is possible. This LOI is a major step for Cypress in securing the water needs of the project.”
The Clayton Valley lithium project is a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America’s only lithium brine operation. The size of the resource makes the Clayton Valley Project a premier American source that has the potential to impact the supply of lithium for the fast-growing energy storage battery market.
Cypress Development is a Canadian exploration company engaged in the acquisition, exploration, and evaluation of resource properties.
Cypress Development (CYP) closed trading at $1.11 per share.
