Nevada Sunrise (TSXV:NEV) announced today that it has executed a termination agreement (the “Agreement”) with Advantage Lithium Corp. (“Advantage”) (TSXV: AAL) to cancel Advantage’s option to earn an interest in the Company’s water right in the Clayton Valley of Nevada, namely Permit 44411 (“the Water Rights Option”).
In consideration for the termination of the Water Rights Option, Nevada Sunrise will issue to Advantage an aggregate of 1,700,000 common shares of Nevada Sunrise (the “Termination Shares”). In addition to statutory and TSX Venture Exchange (“TSXV”) imposed hold periods, the Termination Shares will be subject to hold periods that expire, as follows:
- 425,000 Termination Shares to be issued upon execution of the Agreement;
- 425,000 Termination Shares on the date that is 6 months from the signing of the Agreement;
- 425,000 Termination Shares on the date that is 12 months from the signing of the Agreement;
- 425,000 Termination Shares on the date that is 18 months from the signing of the Agreement.
During the hold periods described above, Advantage Lithium agrees that it will not sell, assign, transfer, or otherwise trade the Termination Shares without the prior written consent of Nevada Sunrise. Completion of the transactions contemplated by this Agreement are subject to the approval of the TSXV. This Agreement will terminate if Nevada Sunrise does not obtain TSXV approval within 60 days of the execution of this Agreement.
About Permit 44411
Nevada Sunrise entered into an option to purchase a 100% interest in Permit 44411 (the “Permit”) from an underlying vendor in early 2016 (see Nevada Sunrise news release dated March 16, 2016). The Permit was first certificated by the State of Nevada (the “State”) in 1993 and is currently held by Intor Resources Corp. (“Intor”), a wholly-owned Nevadasubsidiary of the Company.
In August 2016, in conjunction with a lithium brine property transaction, Advantage earned the right from Nevada Sunrise to option a 100% interest in the Permit, which allowed for withdrawal of up to 1,770 acre/feet of water for mining and milling per year. However, following a motion to forfeit the water rights made by Albemarle Corp., a lithium producer in the Clayton Valley, the State issued a ruling in November 2016 forfeiting the Permit based on Albemarle’s allegations of non-use of the water rights for a five-year period (the “Forfeiture”). Nevada Sunrise appealed the Forfeiture by filing a Petition for Judicial Review of the Forfeiture in the Fifth Judicial District Court of the State of Nevada (the “Court”). Based upon the legal arguments presented to the Court, the Court has ordered that the matter be remanded back to the State Engineer for a formal administrative hearing to allow for, among other things, the Company to present historical evidence of beneficial use of water from the Permit (the “Hearing”). The terms and conditions of the Court’s order remanding the matter to the State Engineer’s Hearing have not yet been finalized, and the Company will present arguments to the Court relating to the proposed order at a hearing on August 15, 2018, in Reno, Nevada. Once the Court has finalized and issued its remand order, the State Engineer will set a date for the Hearing.
To date, Nevada Sunrise has paid to the underlying vendor US$362,500 of an agreed purchase price of US$1,300,000, issued 750,000 common shares of an agreed 2,000,000 shares to be issued and issued 2,250,000 share purchase warrants exercisable at CAD$0.50, $0.75, and $1.00 over a 4-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, cobalt, copper and lithium exploration projects in the State of Nevada, USA.
The Company’s two key gold assets include a 100% interest in the Golden Arrow project near Tonopah, currently the subject of a transaction with Emgold Mining Corporation (TSXV: EMR), and a 21% interest in a joint venture at Kinsley Mountain with Liberty Gold Inc. (TSX: LGD) near Wendover, with each of the properties subject to certain production royalties.
In November 2017, Nevada Sunrise announced an option to earn a 100% interest in the historic Lovelock Cobalt Mine property, located approximately 100 miles (150 kilometers) east of Reno. In March 2018, the Company announced options to earn 100% interests in the Treasure Box and Boyer Mine copper properties, located approximately 3.6 miles (5.8 kilometers) southwest of the Lovelock Cobalt Mine.
Nevada Sunrise began acquisitions of Nevada lithium properties in 2015, which includes 100% interests in the Neptune, Jackson Wash and Aquarius projects, a 50% interest in the Gemini project (Eureka Resources Inc. (TSXV: EUK) holds a 50% interest), and a 100% interest in the Atlantis project, currently under option to American Lithium Corp. (TSXV: LI).
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 restoration of water rights, future mineral production, reserve potential, exploration drilling, potential quantity and/or grade of minerals, potential size or expansion of a mineralized zone, 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 restoration of water rights, the interpretation and actual results of historical exploration at Nevada Sunrise’s exploration properties,, reliance on technical information provided by third parties on any of our exploration properties, …read more
From:: Investing News Network