Water

Water

Western Sierra Resource Corporation (WSRC), formerly Western Sierra Mining Corporation (WSRA), is a 111-year-old publicly traded Company. In addition to its mining interests, WSRC owns 4000 acre-feet of deeded water rights near the world-class resort of Steamboat Springs in northwest Colorado which have been appraised at $10,000 per acre-foot, or $40.5 million in total. As an example, 4000 acre-feet is sufficient to service between 8,000 and 12,000 dwelling units.

“Beneficial uses” of these water rights as defined under Colorado Water Law are as follows:
A. Agriculture; and
B. Residential, commercial and light industrial development; and
C. Recreation, and;
D. Storage

Each of these “beneficial use” categories represents the opportunity for monetization and expansion of WSRC’s Water Rights—and to increase value per acre-foot. Water Rights in the immediate market have been recently valued between $22,000 and $33,000 per acre-foot.

WSRC owns two deep artesian wells, (3000 feet and 1300 feet deep respectively); delivery and storage infrastructure—including approximately 8 miles of redundant underground 8” and 4” high pressure pipe; and underground and above-ground storage (in-ground tank, lake and ponds) which have been servicing 3 residential subdivisions (encompassing 1340 acres) for over eight years.

The value of water per acre-foot may be increased through a strategic blend of beneficial uses. Water rights become more valuable over time and with use, especially given diminishing supplies and increasing demand in the Colorado River Basin States. In Colorado, water rights are considered real property and are owned in perpetuity unless abandoned through declaration or by disuse over an extended period of years. Like real estate, they may be bought, sold, leased, and mortgaged.

The volume of water rights WSMC may adjudicate is limited only by the amount of land WSMC acquires and places into approved beneficial use; and by its continuing good stewardship of that water resource. The land is available in the immediate service area of WSRC’s existing infrastructure in denominations of up to 50,000 acres, and at “dry land” prices averaging $1000-$1500 per acre.

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