TSXV: NEV
VANCOUVER, Jan. 28, 2019 /CNW/ - Nevada Sunrise Gold
Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is pleased to announce that the Fifth Judicial District Court of
Nevada (the "Court") has issued an order vacating a ruling of forfeiture against the Company's
water right made in 2016 by the State Engineer's office of the Nevada Division of Water Resources ("NDWR"). The matter has been
remanded back to the State Engineer for a full administrative hearing on the question of forfeiture that is scheduled for
April 1, 2019 (the "Hearing"). At the Hearing, Nevada Sunrise intends to present historical
evidence of beneficial use of its water right Permit 44411 (the "Permit") located in the Clayton Valley basin, and present
arguments that the State Engineer did not provide the required notice prior to declaring the Permit forfeited.
"Nevada Sunrise has persevered for over two years against the surprise forfeiture of the Permit by the State of Nevada," said Warren Stanyer, President and CEO of the Company.
"Other water rights forfeitures in Nevada similar to our case have recently been reversed on
appeal or remand, and we look forward to receiving equal application of the law."
In June 2016, Albemarle Corporation of Charlotte, North
Carolina, USA ("Albemarle") (NYSE: ALB), 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 in April and May of 2018, after which the Court ordered that the forfeiture ruling be
vacated and the matter remanded for the Hearing. Members of the public are invited to attend the Hearing, which is scheduled for
8:30 AM (Pacific Time) on April 1, 2019 at the offices of 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$392,500 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$317,500 of cash
payments made by the Company.
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. (TSX: LGD) 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,
which are currently under option to Global Energy Metals Corp. (TSXV: GEMC), who can earn up to an 85% participating
interest. In September 2018, the Company 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., (TSXV: KORE), formerly Eureka Resources Inc., holds a 50%
interest), and a 100% interest in the Atlantis lithium project, currently under option to American Lithium Corp. (TSXV: LI), all
of which are located in Esmeralda County.
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 Year Ended
September 30, 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.
SOURCE Nevada Sunrise Gold Corporation
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