CALGARY,
AB, March 16, 2023 /CNW/ - (TSXV: GRD) (OTCQB:
GRDAF) - Grounded Lithium Corp. ("GLC" or the
"Company") announces the closing of the previously disclosed
acquisition of an additional 33 sections (8,498 hectares) of
acreage contiguous to the Company's existing landholdings in the
Kindersley Lithium Project ("KLP") in Western Saskatchewan pursuant to a purchase
and sale agreement with Hub City Lithium Corp. The newly acquired
lands will be integral to our future development plans at the KLP,
which now stands at approximately 300 sections (77,477 hectares).
The acquisition brings GLC's total corporate landholdings, both
Crown and freehold, to 333 sections (86,229 hectares).
In conjunction with the closing, the Company commissioned an
updated National Instrument 43-101 – Standards of Disclosure for
Mineral Projects report effective March
15, 2023 by Sproule Associates Limited on the expanded KLP.
Total lithium carbonate equivalent ("LCE") inferred
resources for the KLP now equals 4.2 million tonnes. GLC's resource
is of comparable scale to the resource base of certain other
lithium from brine operators in the Province of Saskatchewan, which have been the subject of
recent corporate activity.
The incremental inferred resource base on the acquired sections
is approximately 482,000 tonnes of LCE. With a purchase price of
$425,000 (the "Purchase
Price"), the transaction is highly accretive to the Company
with an implied metric on the acquisition price of approximately
$1.00/tonne of LCE and is
substantially below the Company's current market metric of
approximately $5.00/tonne of LCE,
based on the Company's recent trading history.
The Purchase Price was comprised of cash consideration of
$175,000 and the issuance of 779,557
Shares based on the 10-day volume-weighted average trading price of
the Shares on the TSX Venture Exchange as of the closing date. The
Shares are subject to a contractual escrow, to be released in equal
1/3 tranches on the 4, 8 and 12 month anniversaries from
closing.
The Company will continue to assess prospective resource
acquisitions provided they meet the Company's internal geological
and economic thresholds and are accretive to the Company's
valuation. In the meantime, the Company remains keenly focused on
achieving our near-term milestones for the KLP which involve, but
are not limited to, technology selection for direct lithium
extraction, the filing of a preliminary economic assessment, both
of which are anticipated in H1 2023, and the design and early
construction efforts of a field demonstration project in H2
2023.
Expanded Role for Chief Financial
Officer
With the Company advancing quickly on the development path, it
was agreed to expand the role of Greg
Phaneuf, the Company's Chief Financial Officer, to include
corporate development activities. Mr. Phaneuf has held senior
corporate development roles for international and domestic
corporations in the energy and industrial service industries during
his career. Mr. Phaneuf's title will change to Senior Vice
President, Corporate Development & CFO. No changes to Mr.
Phaneuf's compensation are associated with this change.
About Grounded Lithium
Corp.
GLC is a publicly traded lithium brine exploration and
development company that controls approximately 4.2 million metric
tonnes of LCE of inferred resource over our focused land holdings
in Southwest Saskatchewan. GLC's
multi-faceted business model involves the consolidation,
delineation, exploitation and ultimately development of our
opportunity base to fulfill our vision to build a best-in-class,
environmentally responsible, Canadian lithium producer supporting
the global energy transition shift. U.S. investors can find current
financial disclosure and Real-Time Level 2 quotes for the Company
on https://www.otcmarkets.com/.
Qualified Person
Scientific and technical information contained in this press
release has been prepared under the supervision of Doug Ashton, P.Eng, Suryanarayana Karri, P. Geoph., Alexey Romanov, P. Geo. and Meghan Klein, P. Eng., each of whom is a
qualified person within the meaning of National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
Forward-Looking
Statements
This press release may contain forward-looking statements and
forward-looking information within the meaning of applicable
Canadian securities laws. The opinions, forecasts, projections and
statements about future events of results, are forward looking
information, forward-looking statements or financial outlooks
(collectively, "forward-looking statements") under the
meaning of applicable Canadian securities laws. These statements
are made as of the date of this press release and the fact that
this press release remains available does not constitute a
representation by GLC that the Company believes these
forward-looking statements continue to be true as of any subsequent
date. Although GLC believes that the assumptions underlying, and
expectations reflected in, these forward-looking statements are
reasonable, it can give no assurance that these assumptions and
expectations will prove to be correct. Such statements include, but
are not limited to, statements regarding near-term milestones for
the KLP and the timing thereof, including technology selection for
direct lithium extraction, the filing of a preliminary economic
assessment and the design and early construction efforts of a field
demonstration project , the ability of the Company to enhance
shareholder value, and GLC's vision of becoming a best-in-class,
environmentally responsible, Canadian lithium producer supporting
the global energy transition.
Among the important factors, risks, uncertainties and
assumptions that could cause actual results to differ materially
from those indicated by such forward-looking statements are: GLC's
expectation that our operations will be in Western Canada, unexpected problems can arise
due to technical difficulties and operational difficulties which
impact the production, transport or sale of our products;
geographic and weather conditions can impact the production; the
risk that current global economic and credit conditions may impact
commodity prices and consumption more than GLC currently predicts;
the failure to obtain financing on reasonable terms; the risk that
unexpected delays and difficulties in developing currently owned
properties may occur; the failure of drilling to result in
commercial projects; unexpected delays due to the limited
availability of drilling equipment and personnel; the failure to
satisfy conditions precedent to Closing; and the other risk factors
detailed from time to time in GLC's periodic reports. GLC's
forward-looking statements are expressly qualified in their
entirety by this cautionary statement.
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy any securities in any
jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
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SOURCE Grounded Lithium Corp