Cadiz Partners with Lytton Rancheria for $51M Mojave Groundwater Bank Development

Cadiz Inc. Partners with Lytton Rancheria for Groundwater Bank Development

Cadiz Inc. announces a pivotal partnership with Lytton Rancheria, a federally recognized Native American tribe, to secure substantial financing for the Mojave Groundwater Bank project. With an investment potential of up to $51 million, this collaboration represents a significant advancement in water resource management in the Southwest, particularly in a region grappling with persistent drought and water scarcity issues. The agreement, finalized on October 28, 2025, is noteworthy as it marks the first tribal investment in the Mojave Groundwater Bank, a project that aims to become the largest groundwater bank in the Southwest, thereby enhancing water conservation and management strategies.

The partnership is part of a broader capital raise of approximately $450 million, facilitated through the Mojave Water Infrastructure Company, LLC, which Cadiz has established to oversee the project. Cadiz CEO Susan Kennedy underscores the historic nature of this collaboration, describing it as a transformative business model for infrastructure development. Tribal Chairperson Andy Mejia of Lytton Rancheria highlights the critical role of tribal leadership in effective water management, suggesting that this partnership not only addresses immediate financial needs but also fosters collaboration between indigenous communities and private enterprises for sustainable resource management.

Under the terms of the agreement, Cadiz can access unsecured loan proceeds of up to $51 million, with initial funding of around $15 million dedicated to reimbursing development expenses and acquiring essential construction equipment in preparation for project implementation slated for 2026. Lytton's loan is convertible into membership interests in the project entity, thus allowing tribal stakeholders to have a vested interest in the sustainable management of water resources. Cadiz is concurrently engaging with private equity investors to raise an additional $400 million, which, alongside municipal debt and government grants, will help fully finance this ambitious water management initiative.

In addition to the financial aspects of the partnership, Cadiz plans to issue 600,000 shares of common stock as a commitment fee to Lytton Rancheria, with further shares distributed for each million dollars drawn from the loan. This strategic decision not only strengthens the financial foundation of the Mojave Groundwater Bank project but also aligns with Cadiz's objective to innovate water management practices across California and the broader Western region, where water resources are increasingly strained.

As Cadiz moves forward with this partnership, the implications for water management strategies extend beyond financial gains. This initiative exemplifies a vital intersection of indigenous leadership and innovative infrastructure development, which could serve as a model for future collaborations aimed at addressing water resource challenges across the United States.