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).
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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