Cypress Development Corp. (TSXV: CYP | OTCQX: CYDVF | FRA: C1Z1 has completed its acquisition of Enertopia Corporation’s Clayton Valley Lithium Claystone Project located adjacent to the Cypress Clayton Valley Lithium Project in Nevada, U.S.
The purchase consideration for the Enertopia Project comprised US$1.1M in cash and the issuance of 3,000,000 common shares in Cypress Development’s capital.
The transaction also included Enertopia entering into an Irrevocable Proxy and Voting Agreement and Lock-Up Agreement with Cypress in relation to the Consideration Shares.
In terms of these agreements, Enertopia inter alia agreed to; (i) vote in favour of shareholder resolutions supported by Cypress’ Board of Directors (ii) certain limitations to the circumstances under which it could sell the Consideration Shares, and (iii) a 12-month standstill in relation to certain corporate activities pertaining to Cypress shares.
In connection with the transaction, Cypress has agreed to pay a finder’s fee of US$105,000 to an arm’s-length party, subject to TSX Venture Exchange approval.
Commenting on the acquisition, Dr Bill Willoughby, Cypress Development’s president and CEO, said, “We are pleased with the addition of Enertopia’s property.”
“The property is a continuation of the lithium-bearing units in Cypress’ project, with Enertopia’s drilling having shown similar values of lithium.
“With this consolidation, the data will be incorporated into our resource model and has the potential to enhance the project through our Feasibility Study underway. We expect this consolidation of Clayton Valley lithium claystone projects to be of significant value for both Enertopia and Cypress shareholders.”
About Cypress Development Corp.
Cypress Development Corp. is a Canadian based advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, U.S. Cypress is in the pilot stage of testing on material from its lithium-bearing claystone deposit and progressing towards completing a Feasibility Study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle and battery storage market.
To find out more, please visit: https://cypressdevelopmentcorp.com/
