TSXV: NEV
VANCOUVER, Sept. 30, 2019 /CNW/ - Nevada Sunrise
Gold Corporation ("Nevada Sunrise" or the "Company") (TSXV:
NEV) is pleased to announce that the State Engineer of the Nevada
Division of Water Resources (the "NDWR") has issued an order
formally dismissing the forfeiture proceedings against the
Company's water right in the Clayton Valley Basin (the
"Order").
The dismissal follows a negotiated settlement agreement with
Albemarle Corporation of Charlotte,
NC ("Albemarle", NYSE: ALB) wherein Albemarle withdrew its motion to forfeit the
Company's Permit 44411 (the "Permit") (see Nevada Sunrise news
release dated July 15, 2019) in
exchange for Nevada Sunrise's agreement not to drill any wells
within certain areas of the Clayton Valley that could impact
Albemarle's lithium brine mining
operations at Silver Peak, NV.
After more than three years of contentious litigation, Nevada
Sunrise's water rights under the Permit are now in good standing
and out from under the threat of forfeiture from Albemarle's allegations of non-use. As part of
the Order, in conjunction with the dismissal of the forfeiture
proceedings, the State Engineer has issued to Nevada Sunrise a
notice letter requiring the Company to make full use of its water
rights for mining and milling purposes within the next twelve
months and file a proof of resumption of use, or apply for an
extension of time requesting additional time to use the water.
About Permit 44411
Nevada Sunrise's wholly-owned subsidiary, Intor Resources Corp.
("Intor") acquired the Permit, which allows for 1,770 acre-feet of
water use for mining and milling per year, from an arms-length
vendor (the "Vendor"). The Permit represents the largest block of
water in the Clayton Valley that is not owned by Albemarle.
All of the groundwater in the Clayton Valley Basin (20,000
acre-feet) has been fully appropriated, and the NDWR has previously
determined that there is no longer any new water available for
appropriation. Accordingly, with the minor exception of a
single application to appropriate 50 acre-feet annually solely for
a temporary five-year period, all applications for new water rights
made in the past three years by other exploration companies in the
Clayton Valley have been denied by the State Engineer for reasons
that there is no unappropriated water available in the basin.
Nevada Sunrise exercised its option for acquisition of the
Permit by executing a purchase agreement with the Vendor (see
Nevada Sunrise news release dated March 20,
2016). As consideration for its purchase of the Permit, to
date Nevada Sunrise has paid to the Vendor US$437,500 in cash by installments toward an
agreed purchase price of US$1.3
million, and has issued to the Vendor 1,100,000 common
shares (of an agreed 2.0 million shares to be issued over a 5-year
period) and a total of 2,250,000 common share purchase warrants
exercisable over a 5-year period.
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 21% interest in a joint
venture with Liberty Gold Inc. (TSX: LGD) at the Kinsley Mountain
Project ("Kinsley Mountain") near Wendover, with the property subject to a 3.0%
net smelter returns royalty. For further information on
Kinsley Mountain, including a
technical report compliant with National Instrument 43-101
Standards of Disclosure for Mineral Projects entitled "Updated
Technical Report and Estimated Minerals Resources for the Kinsley
Project" (the "Report"), effective October
15, 2015. The Report dated December
16, 2015 was subsequently filed on SEDAR and can be accessed
at http://www.sedar.com
Nevada Sunrise has the right to earn a 100% interest in the
historic Lovelock Cobalt Mine and Treasure
Box copper properties, each located approximately 150
kilometers (100 miles) east of Reno, both of which are currently under option
to Global Energy Metals Corp. (TSXV: GEMC), who can earn up to an
85% participating interest from the Company. In September 2018, Nevada Sunrise acquired the right
to earn a 100% interest in the Coronado VMS Project, located in
Pershing County, approximately 48
kilometers (30 miles) southeast of Winnemucca.
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, which was the subject of an
administrative hearing process in Nevada that has now been settled as detailed
above.
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 acquisition of water rights,
the potential restoration of its water rights, the potential
results of the relocation of water rights, the potential value or
importance of the Company's water rights for mining and milling in
the Clayton Valley, future mineral production, reserve potential,
potential results of exploration drilling, the future price of
lithium and other minerals, potential quantity and/or grade of
minerals, potential size of a mineralized zone, potential expansion
of mineralization, the timing and results of future resource
estimates, or other study, proposed exploration and development of
our exploration properties and the estimation of mineral resources.
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 acquisition and/or transfer of water rights including
challenges from third parties; changes in project parameters as
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 in obtaining
governmental approvals, financing or in the completion of
exploration, 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,
2019, 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