The president and CEO of Mason Resources said acquisition of such a large quantity of primary groundwater rights within the same basin as the Ann Mason project is a major milestone for the company.
Mason Resources (TSX:MNR) has announced that it has entered into a binding term sheet which will grant to Mason an exclusive seven-year option to purchase approximately 8,168 acre-feet per year of primary groundwater rights and certain real property known as the “Artesia Ranch”, located six kilometres south-west from the Ann Mason copper deposit in Douglas County, Nevada.
President and CEO of Mason Resources, Stephen Scott said:
“Acquisition of such a large quantity of primary groundwater rights within the same basin as the Ann Mason project is a major milestone for the company, as it will provide a significant portion of the water required to support copper mining activities and considerably de-risks the project. Primary water rights are highly sought after in Nevada, which is considered one of the worlds most favourable mining jurisdictions. In the Smith Valley where the Ann Mason project is located, water rights are fully allocated.”
According to Mason Resources, in order to maintain the water rights option in good standing, Mason must pay the current owner, Rightway Investments Smith Valley, US$175,000 on the effective date of the term sheet and US$175,000 on or before each anniversary of the effective date. In addition, provided the water rights option has not otherwise been exercised or terminated, Mason must make two milestone payments of US$1.25 million each following the public announcement by Mason of a positive pre-feasibility study and a positive feasibility study on the Ann Mason project. All annual and milestone payments will be credited against the final purchase price.