Nevada Sunrise Announces New Hearing Date for Nevada Water Right and Stock Option Grants
Vancouver, British Columbia--(Newsfile Corp. - March 27, 2019) - Nevada Sunrise Gold Corporation (TSXV: NEV) ("Nevada Sunrise" or the "Company") announced today that the administrative hearing on the question of forfeiture of the Company's Clayton Valley water right (the "Hearing") that was originally scheduled for April 1, 2019, has been rescheduled. The date of the Hearing was reset due to the appointment by the State of Nevada of a new hearing officer, thereby allowing the new appointee additional time to review the case and to hear certain preliminary motions on the matter.
At the Hearing, Nevada Sunrise intends to vigorously defend its water right Permit 44411 (the "Permit") located in the Clayton Valley basin against the claims of non-use alleged by Albemarle Corporation of Charlotte, North Carolina, USA ("Albemarle") (NYSE: ALB), and present arguments that the State Engineer did not provide the required notice prior to declaring the Permit forfeited in November 2016.
Members of the public are invited to attend the Hearing, which is now scheduled for 8:30 AM (Pacific Time) on July 15-19, 2019 and on July 22-26, 2019 at the offices of the Nevada Division of Water Resources (the "NDWR"), Tahoe Hearing Room, 901 South Stewart, Second Floor, Carson City, Nevada.
About the Permit
Nevada Sunrise 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") prior to commencing exploration for lithium brines in the Clayton Valley. In December 2015, Nevada Sunrise received a written appraisal from an independent appraiser certified in the State of Nevada valuing the Permit at US$1.42 million. According to the appraisal report, the Clayton Valley basin is currently "over-appropriated" and that any new applications to appropriate water in an over-appropriated basin would be carefully reviewed by the NDWR. Consistent with the conclusions of the appraisal report, with the exception of one application to appropriate 50 acre-feet annually for a five-year period, all applications for new water rights allocations made in the past two years by other junior lithium explorers in the Clayton Valley have been denied by the NDWR.
Nevada Sunrise exercised its option for acquisition of the Permit by executing a definitive purchase agreement (the "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$397,500 in cash by installments toward an agreed purchase price of US$1.3 million, and has issued 1,100,000 common shares (of an agreed 2.0 million shares to be issued over a 5-year period) and a series of common share purchase warrants exercisable over a 5-year period. The common shares and unexpired warrants issued by the Company are currently being held in trust for the Vendor until all legal challenges to the validity of the Permit have ceased. Should the Permit ultimately be forfeited, in accordance with subsequent amendments to the Agreement, the Vendor has agreed to forego all of the issued common shares and unexpired warrants and return US$322,500 of cash payments made by the Company.
In June 2016, Albemarle filed a motion with the NDWR to forfeit the Permit held by the Company's wholly-owned subsidiary, Intor Resources Corp. ("Intor"). Albemarle argued that the Permit was automatically forfeited by claiming that it had not been used for a five-year period. Albemarle, the world's largest producer of lithium chemical products, currently operates the only producing lithium mine in the United States at Silver Peak, Nevada, in the northern Clayton Valley.
Intor opposed Albemarle's forfeiture motion, and requested a hearing to present evidence to defend its Permit. Intor argued that the State Engineer must first provide a notice prior to initiating forfeiture proceedings. However, the State Engineer did not give Intor the benefit of a hearing, and on November 30, 2016, granted Albemarle's motion and issued the ruling forfeiting the Permit. Since the NDWR ruling, Intor has methodically gathered evidence of historical water use in order to defend the validity of the Permit. Intor's appeal was heard by the Fifth Judicial District Court of Nevada (the "Court") in April and May of 2018, after which the Court ordered that the forfeiture ruling be vacated and the matter remanded for the Hearing.
Nevada Sunrise also announced today that it has granted a total of 675,000 stock options to directors, officers and consultants of the Company, exercisable at a price of $0.09 per share for a period of five years from the date of grant. The options have been granted in accordance with the Company's stock option plan.
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 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. 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, located approximately 150 kilometers (100 miles) east of Reno, both of which are currently under option to Global Energy Metals Corp., 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, which was recently the subject of a diamond drilling program by the Company (see Nevada Sunrise news release dated January 10, 2019).
Nevada Sunrise owns 100% interests in the Neptune, Jackson Wash and Aquarius lithium projects, a 50% interest in the Gemini lithium project (Kore Mining Ltd., formerly Eureka Resources Inc., holds a 50% interest), and a 100% interest in the Atlantis lithium project, currently under option to American Lithium Corp., all of which are located in Esmeralda County.
For Further Information Contact:
Warren Stanyer, President and Chief Executive Officer
Telephone: (604) 428-8028
Facsimile: (604) 684-9365
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, 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; that the result of the scheduled water rights hearing may not be successful, or if successful, the amount of water allowed for beneficial use may be reduced; 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 Three MonthsEnded December 31, 2018, 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.