Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF) announced the completion of the purchase of its permit for water rights in Clayton Valley, Nevada, which is necessary to develop its lithium project in the state.
The Vancouver-based company purchased the water rights from Intor Resources Corp, a subsidiary of Nevada Sunrise Gold Corp, for US$2 million in cash and US$850,000 worth of Cypress shares.
The permit allows for the appropriation of the public waters from the State of Nevada in the amount of 1,770 acre-feet of groundwater per year for mining, milling and domestic applications, according to a statement from Cypress.
READ: Cypress Development reports successful pilot plant start-up at its Clayton Valley Lithium Project in Nevada
The amount is the largest single volume of permitted water available in the Clayton Valley, which is a fully appropriated hydrogeographic basin, the company told shareholders.
"Water resources in Nevada are limited, therefore the acquisition of this permit by Cypress represents a milestone which will secure a majority of the project's future water requirements," CEO Bill Willoughby said.
The company is developing its 100%-owned Clayton Valley lithium project in Nevada, where it discovered a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation.
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