Western Sierra Resource Corp (OTCMKTS:WSRC) is up more than 40% on volume of approximately $1 million after the company announced its recently acquired subsidiary Mitigation Solutions, LLC (MSL) and the Conservation District of Santa Maria Valley Water (SMVWCD) in Santa Barbara County, California. A final contract was ratified by all parties on October 19, 2022. Under this final contract, MSL will mitigate damages and restore the Twitchell Dam and Reservoir to their original retention capacities at a cost of $1.5 at $2 billion. The contract allows for adjustment in the scope and duration of the project – over an expected completion schedule of 7 to 10 years. The Company’s gross revenues are estimated to average $200 million per year. Two additional projects are currently on hold.
WSRC has a history of large moves from $0.05 to $0.50 during the summer of 2021. Earlier this month, the company acquired 100% of the shares and assets of Mitigation Solutions, LLC ( MSL) to carry out one of its natural resource management projects. and development goals. In a stock and cash transaction, MSL became a wholly owned subsidiary of WSRC, providing the company with the ability to mitigate water contamination, stabilize dams and remediate large-scale water supply affected by sedimentation for municipalities and special districts across the country. These anticipated revenues enhance the Company’s ability to finance its other natural resource projects without debt or dilution.
Western Sierra Resource Corp. (OTCMKTS: WSRC) Founded in 1907, Western Sierra Resource Corporation has a 115-year history as a gold and silver mining company with projects in Arizona, Nevada, California and Mexico. WSRC currently has six precious metal reserves in Arizona. In 2014, the Company broadened its focus to include natural (and renewable) resources with its acquisition of water rights and associated infrastructure assets in Colorado for irrigation and industrial hemp cultivation; processing of hemp for the manufacture of various construction products; and for building affordable homes using hemp-based materials, among other beneficial uses. WSRC’s intention is to become a large-scale resource company with high-value, revenue-generating assets that include water conservation projects, real estate, agriculture, precious metals, helium and associated “green” technologies.
Earlier this year, the WSRC announced, in accordance with its May 11, 2022 press release, that the final review and acceptance by the WSRC of a $25 million funding agreement was completed on May 16. 2022; and subsequently executed by all Parties. This financing agreement with Beton Inc. represents $25 million in a combination of non-dilutive debt and equity financing for the shareholders of the Company.
The Company announced the acquisition of 100% of the shares and assets of Mitigation Solutions, LLC (MSL) in order to achieve one of its natural resource management and development objectives. In a stock and cash transaction, MSL became a wholly owned subsidiary of WSRC, providing the company with the ability to mitigate water contamination, stabilize dams and remediate large-scale water supply affected by sedimentation for municipalities and special districts across the country.
MSL’s first mitigation agreement as a WSRC company was accepted by the Santa Maria Valley Water Conservation District (SMVWCD) Board of Directors and executed on Saturday, September 17, 2022. This mitigation agreement relates to Federal Emergency Management Agency (“FEMA”) funding, as well as other Federal Agency funding, of which SMVWCD is a recipient for immediate use at the Dam Mitigation Project site and from Twitchell’s reservoir. The project is expected to take 7-10 years to complete and involves the emergency removal of ash-contaminated sediment to stabilize the Twitchell Dam; restoring the Twitchell Reservoir to its original operational capabilities; and mitigation of tributary contaminated sediments, water contamination and soil deposition from upstream drainages. The Twitchell Dam and Reservoir site is the first of several California sites where these contracted services can be performed by MSL. Details of the mitigation agreement will follow. MSL directors join the WSRC leadership team.
Massive income? ✅ (200 million)
Massive assets? ✅ (40+ million)
Massive contracts? ✅ (1.5 BILLION)
No dilution? ✅
I will always be there at 0.50. https://t.co/T4zIBF6tHO
— Zalmy (@greatstockpicks) October 25, 2022
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As outlined in this final contract, MSL will mitigate the damage and restore the Twitchell Dam and Reservoir to their original retention capacities at a cost of $1.5-2 billion. The contract allows for adjustment in the scope and duration of the project – over an expected completion schedule of 7 to 10 years. The Company’s gross revenues are estimated to average $200 million per year. Two additional projects are currently on hold. Ratification of the final contract precipitates the start of Phase I operations within seven (7) days and the ramp-up continues over the coming months. The Company secured $40 million in equipment financing and a $150 million line of credit for phased mobilization immediately available through institutional vendors.
MSL will obtain federal reimbursement funding for SMVWCD from the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and the 2022 Omnibus Appropriations Bill through various federal agencies and state, primarily the Federal Emergency Management Agency (FEMA), the United States Department of Agriculture (USDA), and the United States Department of Transportation (USDOT). Additional funding from other federal and state agencies is expected.
Federal funding for SMVWCD (as recipient) applies first to the stabilization of the Twitchell Dam and the restoration of the Twitchell Reservoir of approximately 224,300 acre-feet (~73.07 billion gallons). MSL will remove and reuse approximately 40 to 60 million cubic meters of ash-contaminated and uncontaminated sediment from the reservoir basin. These sediments have accumulated in the reservoir over the past four decades and have significantly reduced the reservoir’s ability to recharge local groundwater and aquafer upon which local agriculture and food production depend. Returning the reservoir to its original holding capacity also allows the Twitchell Dam and Reservoir to operate effectively as an essential flood control structure and a source of water to fight wildfires.
Second, the scope of the project encompasses the mitigation of tributary contaminated sediments, water contamination and preemptively addresses the deposition of eroded soils from upstream drainages to mitigate future adverse effects to the reservoir and damage to the dam that supports it. Global Clean Water, Inc. (GCW) has contracted with WSRC and MSL to handle functions in each of the four (or more) phases of the Twitchell project.
With the acquisition of MSL by WSRC, MSL executives have joined the WSRC management team and bring 200 years of combined experience in disaster response/relief, mitigation and restoration to the company. This experience specifically includes, but is not limited to, natural disaster damage assessment, response and recovery activities; restoration of flood-contaminated streams; mitigation of factors compromising the integrity of lakes, reservoirs and municipal water storage facilities; and the failure of the reconstruction of the water distribution system. Global Clean Water, Inc., with its specialized protocols for mitigating contamination in potable water supplies, will be an integral part of these and other project requirements.
Photographic recordings, video and written materials will be made available throughout the duration of the Twitchell Project (and as specific on-site objectives are achieved) for the benefit of the Valley Water Conservation District. Santa Maria, its residents and the shareholders of the company.
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— Western Sierra Resource (@WSRCorp) October 25, 2022
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Currently trading in a $12 million market Evaluation WSRC OS is 312 136 648 and there is 111,263,126 shares in the float. The Corporation increases its water rights to $49 million on the balance sheet and $9.7 million on Passives. WSRC is an exciting story that thrives in small caps. They Just Secured $25 Million in Funding, Acquired Mitigation Solutions, LLC, and Signed an Agreement with the Santa Maria Valley Water Conservation District (SMVWCD) in Santa Barbara County, California , for Twitchell Dam mitigation. and reservoir. The agreement has a value of $1.976 billion payable over the project life of 7 to 10 years, representing an estimated average annual gross revenue of $200 million. These anticipated revenues enhance the Company’s ability to finance its other natural resource projects without debt or dilution. We’ll be updating WSRC daily, so make sure you’re subscribed to microcapdaily.com so you know what’s going on with WSRC.
Disclosure: We do not hold any position in WSRC, long or short, and we have not been compensated for this article.