Dominion Water Reserves (CSE: DWR) has formally acquired a 100% interest in the St Jospeh de Coleraine water source in Quebec. The water reserve accounts for 0.7% of the total volume under permit within Quebec. The closing of the acquisition brings the number of spring water sources owned by Dominion Water to a total of ten.
Dominion Water now has over 3 billion litres of spring water acquired and under permit within the province of Quebec. The current portfolio of the company includes the largest well in the province, which includes over 2.0 billion litres of water than are permitted to be extracted on an annual basis. The portfolio also contains two deep seaport sources of water.
With the closing of the recent acquisition, Dominion Water now currently holds a 30.4% share of the spring water sources within Quebec, with the company having a path to secure over 50% of the natural underground reserves of freshwater in the province. This amounts to over 7.5 billion litres of potential extraction volume on an annual basis and over 1000 acres of land.
The recently acquired St Joseph de Coleraine water source in Quebec is unique in that it contains 13 ppm silica, making it a specialty water source. The water comes from one of only two permitted esker reserves in the province, and is the second largest source of water at 9.4% of the permitted extraction volume in the province.
In connection with the acquisition, Dominion Water has secured a 25 year water sale contract with the seller of the asset, Aquanor. The water is to be sold in recyclable packaging at local retailers. The arrangement provides for Dominion to receive $0.005 for every litre of water sold to Aquanor, opening the company up to near term revenues.
Dominion Water last traded at $0.12 on the CSE.
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