TRER Signs Agreements with GLO on Land Purchase, Water Rights
by Kevin Lynch
Texas Rare Earth Resources (TRER) Signs Agreements With the Texas General Land Office
October 29, 2014, SIERRA BLANCA, TX:
TRER has signed an option to purchase surface rights covering 5,670 acres, and signed a ground water lease covering all anticipated water needs
Texas Rare Earth Resources Corp. (TRER), an exploration company specializing in the heavy rare earths, is pleased to announce that it has executed agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top project mine and plant areas and, separately, a lease to develop the water necessary for the potential Round Top project mine operations.
The option to purchase the surface rights covers approximately 5,670 acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. TRER may exercise the option for all or part of the option acreage at any time during the sixteen year primary term of the mineral lease. The option can be kept current by an annual payment of $10,000. The purchase price will be the appraised value of the surface at the time of exercising the option.
The ground water lease secures TRER’s right to develop the ground water within a 13,120 acre lease area located approximately 4 miles from the Round Top deposit. The lease area contains five existing water wells. It is anticipated that all potential water needs for the Round Top project mine operations would be satisfied by the existing wells covered by this water lease. This lease has an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production TRER will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains effective as long as the mineral lease is in effect.