The Global Resource For Connecting Buyers and Sellers

Two Companies with Nevada Lithium Deposits Plan Joint Venture

The close proximity of two properties offers promise of synergies for these firms.

With an eye toward partnering in a joint venture (JV), Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) signed a nonbinding letter of intent with Dajin Resources Corp. (DJI:TSX.V; DJIFF:OTCPK) concerning Dajin’s Alkali Spring Valley lithium property in Nevada, 12 kilometers from Cypress’ Clayton Valley lithium project.

Under the agreement, Cypress gains the exclusive right and option to acquire a 50% interest in Dajin’s 145 unpatented mining claims at Alkali Spring Valley, as well as its application for 1,000-acre-feet per year of water rights in Nevada’s Esmeralda County.

In exchange, Cypress will give Dajin 150,000 Cypress shares plus $50,000. Cypress has two years to complete its earn-in, which requires issuing another 150,000 Cypress shares to Dajin, and spending $200,000 on exploration at Alkali Spring Valley in year one and $250,000 in year two. Following that two-year period, the two companies will establish the JV.

If Dajin does not want to participate in the JV at that point, it may “dilute to a 10% net profits’ interest on the value of the JV property in Alkali Spring Valley,” a news release explained.

The next steps are for Cypress to perform due diligence on Dajin and draft a definitive agreement for the deal. Once those are done and the TSX Venture Exchange approves the transaction, Cypress will compensate Dajin with the above mentioned shares and cash.

After the JV is in place, Cypress and Dajin will “share proportionally in property development if lithium brine resources are discovered,” according to the release.

“We look forward to working with Dajin on the exploration of the Alkali Spring Valley lithium property, and we appreciate its work to date toward obtaining related water rights,” Cypress’ CEO Bill Willoughby said in the release. “We particularly welcome the prospect to explore synergies with our Clayton Valley lithium project.”


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Cypress Development. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.