Vancouver, BC, September 25, 2018 - Mason Resources Corp. (TSX:MNR; OTCQB: MSSNF – “Mason” or the “Company”) is pleased to announce that it has entered into a binding term sheet (the “Term Sheet”) with Rightway Investments Smith Valley, LLC (“Rightway”), pursuant to which Rightway will grant to Mason an exclusive seven-year option to purchase approximately 8,168 acre-feet per year (“AFA”) of primary groundwater rights (the “Water Rights Option”) and certain real property known as the “Artesia Ranch”, located six kilometres south-west from the Ann Mason copper deposit in Douglas County, Nevada.
Stephen Scott, Mason’s President & CEO commented, “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.”
In order to maintain the Water Rights Option in good standing, Mason must pay to Rightway 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.
Mason may exercise the option at any time during the first year by paying a purchase price of US$3,350 per AFA. The purchase price will escalate by 2% in year two, 3% in year three, 4% in year four, and 5% in each of years five, six and seven. The water rights are currently designated for agricultural use and will eventually require Nevada Division of Water Resources approval to be converted to mining use.
Mason may terminate the option at any time in its sole discretion without obligation beyond the termination date.
Robert Cinits, P.Geo., Mason’s Chief Operating Officer, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), has approved the technical information in this release.