Cypress Development Corp. (TSX.V: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) (â€œCypressâ€ or â€œthe Companyâ€) is pleased to report that it has entered into a Water Rights Purchase and Sale Agreement (the â€œAgreementâ€) with Intor Resources Corporation (â€œIntorâ€), a wholly owned U.S. subsidiary of Nevada Sunrise Gold Corporation (â€œNevada Sunriseâ€), for the purchase of Intorâ€™s Water Rights Permit in Clayton Valley, Nevada (the â€œPermitâ€). The Permit allows for 1,770 acre-feet of water per year for mining, milling, and domestic use.
â€œWith the completion of the Agreement, Cypress is a big step closer to securing water rights for our Clayton Valley Lithium Projectâ€, stated Bill Willoughby, President & CEO of Cypress. â€œCypress and Nevada Sunrise are now moving forward to complete the partiesâ€™ obligations under the Agreement. For Cypressâ€™ lithium project, this is a meaningful development because water is a vital resource to the project. This purchase has the potential to secure the Projectâ€™s future water requirements.â€
Terms of the Agreement
The purchase price for the Permit is US$3 million to be paid in a combination of cash and Cypress common shares. The purchase price includes an initial non-refundable cash payment of US$150,000 (paid), and a final payment of US$2.85 million on receipt of all necessary approvals and transfer of the Permit to Cypress (â€œClosing Paymentâ€). The Closing Payment comprises US$2 million in cash and the issuance of Cypress common shares to the value of US$850,000 (â€œShare Issuanceâ€).
The Agreement is subject to terms and conditions customary for a transaction of this nature, including TSX Venture Exchange approval of the Share Issuance. The Parties are now working towards obtaining the approvals required for the transfer of the Permit, expected during the fourth quarter of 2021.
About Cypress Development Corp:
Cypress Development Corp. is a Canadian advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America’s only lithium brine operation. The results of a positive Pre-Feasibility Study for the Clayton Valley Lithium Project were announced by Cypress Development in June 2020. Cypress Development trades on the TSX Venture Exchange under the symbol CYP, and on the OTCQB under the symbol CYDVF.
ON BEHALF OF CYPRESS DEVELOPMENT CORP.
WILLIAM WILLOUGHBY, PhD., PE
President & CEO
For further information, please contact:
Spiros Cacos | Vice President, Investor Relations
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Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration, and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.