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General Market Commentary
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General Precious Metals
Nevada Sunrise, Albemarle reach agreement on Clayton Valley water rights
Vancouver-headquartered junior Nevada Sunrise Gold has negotiated a settlement agreement with NYSE-listed Albemarle over a water right permit in the Clayton Valley, Nevada, bringing an end to three years of litigation.
Permit 44411’s good standing status has been restored and Nevada Sunrise will now be able to create partnerships with companies to use water from the permit for their mining operations.
Nevada Sunrise, however, has agreed not to drill water wells in certain areas of the Clayton Valley that could impact on Albemarle’s lithium brine operations at Silver Peak.
"This agreement is a landmark moment for Nevada Sunrise," said president and CEO Warren Stanyer. "After three years of litigation, the company is now able to create partnerships with other companies active in Esmeralda county that can use fresh water from our permit for their mining operations."
Nevada Sunrise subsidiary Intor Resources in March 2016 exercised an option to earn into permit 44411, which allows for the withdrawal of 1 770 acre/feet a year of water for mining and milling, but three months later, lithium producer Albemarle filed a motion of forfeiture, alleging nonuse of water rights.