08:01 AM EDT, 03/25/2026 (MT Newswires) -- P2 Gold ( PGLDF ) , which saw its stock jump 12% yesterday, reported earlier Wednesday that its wholly-owned subsidiary, P2 Gabbs Inc., has entered into a letter agreement with an arm's length private vendor to acquire water rights in the Gabbs Basin of Nevada.

A statement noted the agreement remains subject to the execution and delivery of a definitive agreement and the approval of the TSX Venture Exchange.

PGLD said it has also agreed to settle outstanding shareholder working-capital loans with certain insiders of the company.

Under terms in the letter agreement, P2 will acquire 2,500 acre-feet per year of water rights, a water supply that "exceeds the current projected process water requirements" for the Gabbs Project and "ensures upside capacity in anticipation of potential project expansion."

Other key terms of the letter agreement include: the purchase price payable to the vendor for the Water Rights is US$4,250 per acre-foot per year for a total of US$10.625 million, with US$100,000 payable on the signing of the definitive agreement and US$10.525 million payable within 30 days following the Nevada Division of Water Resources approving the transfer of the Water Rights to P2 Gabbs.

Also: US$100,000 will be payable to the vendor each year on the anniversary of the definitive payment if the NDWR has not approved the transfer of the Water Rights to P2 Gabbs at that time; and the vendor shall be responsible for filing the documentation with NDWR for the transfer of the Water Rights to P2 Gabbs for use at the Gabbs Project, the cost of which filing will be paid by P2 Gabbs.

PGLD said the anticipated time frame for NDWR approval of the transfer of the Water Rights to P2 is six to 12 months, coinciding with the projected completion of the Gabbs feasibility study at the end of the fourth quarter.

"With water rights secured for the Gabbs Project we have achieved a major de-risking milestone," said Joe Ovsenek, President and CEO.

"We will now turn our attention to other long-lead items required for production at Gabbs. Approval of the transfer of the water rights is expected by yearend, which fits well with the expected completion of the Gabbs Feasibility Study in the fourth quarter of this year."

Shares in PGLD rose $0.07 to $0.65 yesterday.