Cadiz Inc. (NASDAQ: CDZI) announced it has entered into a funding agreement with the U.S. Bureau of Reclamation to support technical and regulatory review activities for the Mojave Groundwater Bank project.

Under the agreement, Cadiz will provide funding to support Reclamation's review of proposed water exchange agreements, validation of water supply resources and technical work associated with evaluation of potential future federal investment in the project.

The initial tasks are expected to begin immediately and include assessing the appropriate method for implementing and accounting for proposed water exchanges within the Colorado River System, technical work to validate water supply and delivery capability, and evaluation of future steps necessary to support potential federal investment.

The funding agreement stems from a memorandum of understanding executed in September 2025 between Reclamation, Fenner Valley Water Authority and Fenner Gap Mutual Water Company.

The Mojave Groundwater Bank is a conjunctive-use groundwater storage project located in southeastern California near the Arizona and Nevada border. Managed by Fenner Gap Mutual Water Company, the project is designed to interconnect the Colorado River and California State Water Project systems through new pipeline infrastructure.

The bank contains an estimated 30 million acre-feet of groundwater in storage and is approved to provide a reliable annual supply of up to 75,000 acre-feet per year, in addition to one million acre-feet of imported water storage capacity.

"This agreement represents an important step forward in our collaboration with Reclamation and other stakeholders to evaluate the Mojave Groundwater Bank's potential role in augmenting water supplies within the Colorado River system," said Susan Kennedy, Chair and CEO of Cadiz.