- Details
- By Tribal Business News Staff
- Energy | Environment
A publicly traded company announced Tuesday that it has secured $51 million in financing from Lytton Rancheria of California, marking the first tribal investment in the Mojave Groundwater Bank, a water supply and groundwater storage project planned as the largest groundwater bank in the Southwest.
Cadiz Inc., a Los Angeles-based water solutions company, reported it is raising the capital through Mojave Water Infrastructure Company LLC, a special-purpose entity formed to construct, own and operate the project. The federally recognized tribe's investment represents the first tranche of approximately $450 million in total equity capital the company is raising for the project.
The company, along with Fenner Gap Mutual Water Company and the Fenner Valley Water Authority, will partner with Native American tribes, public agencies and water districts to build what it describes as the first large-scale, tribal-owned water infrastructure project off tribal lands in U.S. history, according to the Cadiz website.
“For generations, tribes have protected the land and water that sustains us. Today, we are taking a seat at the table to help shape how water is managed across California and the West,” Lytton Rancheria Tribal Chairperson Andy Mejia said in a statement. “This partnership demonstrates that when tribal leadership is part of the solution, every community benefits.”
Under the agreement, Cadiz may draw unsecured loan proceeds up to $51 million to fund development and capital costs. Lytton's loan is convertible into membership interests in the infrastructure company on the same economic terms offered to other equity investors. Initial proceeds of approximately $15 million are expected to reimburse Cadiz for project development expenses, with additional draws anticipated to fund equipment deposits for construction expected in 2026.
Cadiz is completing due diligence with private equity investors for up to an additional $400 million in equity investment. Combined with municipal debt and government grant financing, the capital is expected to fund construction of all project facilities.
As part of the deal, Cadiz will issue 600,000 shares of common stock at closing as a commitment fee and 25,000 shares per $1 million funded on each draw.
The agreement follows a letter of intent executed between Cadiz and Lytton in November 2024.
