/NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW/
CALGARY,
AB, Sept. 7, 2023 /CNW/ - (TSXV: GRD)
(OTCQB: GRDAF) - Grounded Lithium Corp. ("GLC" or the
"Company") announces a non-brokered private placement for a
minimum of $500,000 (the
"Financing") with commitments from certain insiders of
$250,000. The private placement will
be comprised of a unit offering with the underlying Class A common
share ("Common Shares") priced at $0.11 per share, with a ½ Common Share purchase
warrant (the "Warrant") attached to each unit. Each whole
Warrant may be exercised into a Common Share at a strike price of
$0.18 for up to 24 months. The
Warrants also have a forced acceleration clause wherein, if the
trading price of the Common Shares trades at a 50% premium to the
Warrant strike price ($0.27 per
share) for 20 consecutive trading days, the Company can elect to
force conversion on 30 days' notice. The Common Shares will be
subject to a four-month hold period pursuant to securities
regulations. Should the Company close on the minimum Financing
which is expected to be on or around September 20, 2023, insider ownership of the
Company will be approximately 16%.
The proceeds will be used for general corporate purposes and
advancing the engineering design on our field pilot.
"With a recently filed independent preliminary economic
assessment of the Kindersley Lithium Project, Phase 1, concluding
an after-tax net present value of greater than US$1 billion, we are excited to move the Company
forward by executing on the business plan and begin to capture this
intrinsic value in our public valuation," commented Greg Phaneuf, Senior Vice President, Corporate
Development & CFO. "This financing is a continued show of
support and conviction that GLC has the potential to become a
significant lithium resource developer in Western Canada. This capital will be used to
fund ongoing development and corporate expenses as the Company
continues to evaluate other capital raising strategies, as
communicated in our Q2 2023 earnings release on August 28, 2023."
About Grounded Lithium
Corp.
GLC is a publicly traded lithium brine exploration and
development company that controls approximately 4.2 million metric
tons of lithium carbonate equivalent of inferred resource over our
focused land holdings in Southwest
Saskatchewan as of the effective date of the PEA. The PEA,
titled "NI 43-101 Technical Report: Preliminary Economic
Assessment Kindersley Lithium Project – Phase 1" dated
August 9, 2023 and effective as of
June 30, 2023, reports a Phase 1
NPV8 after-tax of US$1.0
billion with an after-tax IRR of 48.5%. 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 pertaining specifically to recent lab extraction results on
our brine from the KES lab were prepared under the supervision of
Dale Shipman, P.Eng, VP Operations,
of the Company, a qualified person within the meaning of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects. All other 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 the timing of future
achievements, the anticipated closing date of the Financing,
statements pertaining to the use of proceeds from the Financing,
the expected gross proceeds from the Financing, the expected
participation in the Financing by insiders of the Company, future
capital raising strategies 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; 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.
SOURCE Grounded Lithium Corp