Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) said it has struck an amicable deal to terminate a previously announced sale of water rights, which will further allow the advance of its MacArthur and Yerington assets in Nevada, USA.
As a result, Lion Copper and Gold will recover the water permit designated for mining and milling use and will return a US$1 million deposit to Desert Pearl Farms, it said in a statement.
It also follows the announcement in May this year of a final agreement between the company and Rio Tinto America Inc on the scope of the stage one work program at the firm's Mason Valley assets in Nevada, which will see Rio Tinto provide $3.5 million in funding to advance the assets.
"We appreciate Desert Pearl Farms' support in allowing us to put these water rights back to their original intended use for mining and milling, as we pursue development of the MacArthur and Yerington projects with Rio Tinto," said Travis Naugle, CEO of Lion Copper and Gold in a statement.
READ: Lion Copper and Gold says Rio Tinto to provide $3.5M funding for Mason Valley development after companies reach agreement on work program
"We recognize our role as a steward of natural resources in the Mason Valley and are working closely with Rio Tinto on leading sustainability approaches on water use and consumption," he added.
The company also announced a financing of up to US$2 million in convertible debentures with final terms yet to be determined and that it has agreed to settle US$61,366 of debt (for services provided) with a creditor by issuing 915,910 shares at a deemed price of US$0.067 (C$0.085) each.
Lion CG is a Canadian-based company advancing its flagship MacArthur Copper project in Nevada, in addition to advancing its exploration projects including the Chaco Bear and Ashton properties in highly prospective regions in British Columbia, Canada, and the Blue Copper prospect in Montana, USA
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