SANDFIRE RESOURCES AMERICA INC. The permits issued by the DNRC authorize the Company to divert groundwater for use in the mining of the Johnny Lee copper deposit and to store high-water flows for stream flow maintenance. The DNRC also approved the Company's change applications to use six existing water rights to mitigate surface water flow reductions resulting from the groundwater diversion. Water right permits and change applications are issued by the DNRC in accordance with the Montana Water Use Act (Title 85, chapter 2, MCA).
The Company, as the applicant, was required to prove the following criteria for issuance of the new water right permits: There is water physically available at the proposed point of diversion in the amount that the applicant seeks to appropriate; Water can reasonably be considered legally available during the period in which the applicant seeks to appropriate, in the amount requested; The water rights of a prior appropriator will not be adversely affected by the proposed new use; The proposed means of diversion, construction, and operation of the appropriation works are adequate; The proposed use of water is a beneficial use and The applicant has a possessory interest or the written consent of the person with the possessory interest in the property where the water is to be put to beneficial use.
While the Company received objections to the water use permits and the mitigation changes, the Company was able to resolve all but one of the objections through negotiated settlements, which may not be challenged as agreed upon by the parties. The one remaining objection to the groundwater permit, which is pending before the
Senior Vice President
One other regulatory hurdle to
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Email: nschlepp@sandfireamerica.com
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this document constitute 'forward looking information' within the meaning of Canadian securities legislation, including statements regarding the Agreement, the Company's financing options and expected outcomes. In making these forward-looking statements, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will receive required regulatory approvals, and that the Company will be able to secure additional funding to execute its plans. However, the forward-looking statements in this document are subject to numerous risks, uncertainties, and other factors, including delays in obtaining or inability to obtain required government or other regulatory approvals or financing. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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