P2 Gold Secures 2,500 Acre-Feet of Water Rights for Nye County Gabbs Project

With water rights secured for the Gabbs Project we have achieved a major de-risking milestone," said Joe Ovsenek, president and CEO of P2 Gold, after his company's subsidiary signed a letter agreement March 19 to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin of Nye County from an arm's-length private vendor.

The agreement, announced March 25, was entered into by P2 Gabbs Inc., a wholly owned subsidiary of P2 Gold Inc. (TSXV: PGLD; OTCQB: PGLDF). It remains subject to execution of a definitive agreement and approval by the TSX Venture Exchange. P2 also disclosed it agreed to settle outstanding shareholder working-capital loans with certain company insiders, though the amounts and identities of those insiders were not disclosed.

The 2,500 acre-feet-per-year figure is meaningful because it exceeds what the Gabbs Project actually needs. According to a preliminary economic assessment with an effective date of October 7, 2025, total makeup water requirements for the Gabbs process facilities are estimated at 215 cubic meters per hour, roughly 1,500 acre-feet per year, at a processing rate of 9 million tonnes annually. The additional capacity is intentional: P2 described the surplus as ensuring "upside capacity in anticipation of potential project expansion."

The water rights transfer requires approval from the Nevada Division of Water Resources, a process P2 anticipates will take six to twelve months. Ovsenek noted the timeline aligns with the company's broader development schedule: "Approval of the transfer of the water rights is expected by year end, which fits well with the expected completion of the Gabbs feasibility study in the fourth quarter of this year."

That feasibility study is running concurrently with an active infill and expansion drill program at Gabbs. Once drilling wraps up, P2 expects to complete an updated mineral resource estimate in the third quarter of this year.

The Gabbs Project sits on the Walker Lane Trend in Nye County, accessible via paved Highway 361. Its 2025 preliminary economic assessment outlined average annual production of 109,000 ounces of gold and 15,000 tonnes of copper over a projected mine life of 14.2 years. The full NI 43-101 technical report is available through SEDAR+ and at p2gold.com.

P2 originally acquired the Gabbs assets in 2021 from Borealis Mining Company, a subsidiary of Waterton Precious Metals Fund II Cayman, LP, for US$10 million in staged payments plus 15 million shares and a 2% net smelter return royalty, of which P2 retains repurchase rights. Waterton became an insider of the company following that transaction.

The purchase price for the water rights was not disclosed in the company's announcement, nor was the legal identity of the private vendor.