Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF) revealed that its plans to develop its Clayton Valley lithium project in Esmeralda County, Nevada, USA have taken a step further as a key water right permit has been granted an extension.
In May this year, the company inked a letter of intent (LOI) with a subsidiary of Nevada Sunrise Gold Corp over acquiring water rights, which would allow for the use of 1,770 acre-feet per annum (AFA) for mining, milling, and domestic use.
The Nevada Division of Water Resources (NDWR) has now granted an extension to Nevada Sunrise Gold for the Nevada Water Right Permit 44411, said Cypress Development
"The extension of time granted by the NDWR to August 28, 2022, was a key condition precedent for the purchase of the permit by Cypress. The parties will now proceed with the closing of the transaction," the company added.
Cypress will buy the permit for US$3 million, of which the company has already paid US$150,000. The remaining US$2.85 million will be paid in cash and shares upon receipt of all necessary regulatory approvals and the transfer of the permit to Cypress.
READ: Couloir Capital repeats 'Buy' on Cypress Development as company reaches "major milestone" with completion of pilot plant
In October, Cypress Development reported a major milestone in that it had now finished assembling its pilot plant at the company's Clayton Valley lithium project in Nevada.
The new pilot plant is inside a metallurgical facility around 100 miles south of the project and includes four main sections - a leaching area, a tailings handling area, a pregnant leach solution (PLS) treatment area, and a Direct Lithium Extraction (DLE) process (in this case, the Lionex process) area.
The wholly-owned Clayton Valley Lithium project is the site of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine - North America's only lithium brine operation.
A positive pre-feasibility study for the property was announced by the company in August 2020.
Contact the author at giles@proactiveinvestors.com