Restriction May Constitute a Violation of United States Securities Law./
Grounded Lithium Announces Closing on
Upsized Private Placement for $765,000
/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. 25, 2023
/CNW/ - (TSXV: GRD) (OTCQB: GRDAF) - Grounded Lithium
Corp. ("
GLC
" or the "
Company"
) announces we closed on an upsized amount from the
$500,000
non-brokered unit offering private placement previously announced
September 7, 2023
(the
"
Financing
"). In total,
$765,320
was raised through a combination of insiders together with third-
parties under the Financing at the offering price of
$0.11
per unit. Each unit includes one Common
Share ("
Common Share
") and one-half of one Common Share purchase warrant ("
Warrant
").
Common Shares issued under the Financing total 6,957,450, bringing the Company's basic shares
issued and outstanding to 76,613,873. 3,478,721 Warrants were also issued under the Financing,
which have a strike price of
$0.18
. The Warrants expire on the date which is two years from the
date hereof, subject to a right exercisable by the Company to accelerate the expiry of the Warrants
upon 30 days written notice if the closing price of the Common Shares on the TSX Venture
Exchange ("
TSXV
") is at or greater than
$0.27
for a period of 20 consecutive trading days. Fully
diluted issued and outstanding Common Shares equals 104,341,440. Insider ownership of the
Company remains at 14% on a basic Common Share outstanding basis. The Common Shares and
Warrants issued under the Financing will be subject to a hold period until the date which is four
months and a day after the date hereof.
No finders fees were paid pursuant to the Financing. Funds raised will be used to fund various
corporate initiatives, inclusive of advancing engineering on our field pilot. The TSXV has conditionally
approved the Financing, including the listing of the Common Shares and Common Shares underlying
the Warrants on the TSXV. The Financing is subject to final approval by the TSXV.
Certain insiders of the Company participated in the Financing pursuant to available related party
exemptions under Multilateral Instrument 61-101 ("
MI 61-101
"). The Company was exempt from the
requirements to obtain a formal valuation or minority shareholder approval in connection with the
insiders' participation in the Financing in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 in
that the fair market value (as determined under MI 61-101) of the consideration for securities of the
Company to be issued to related parties does not exceed 25% of the Company's market
capitalization (as determined under MI 61-101).
Investor Relations Contract
The Company entered into an investor relations contract with 3L Capital Inc. ("
3L
") that combined
with various other shareholder awareness efforts are focused on increasing the profile of the
Company in the public markets and its robust value proposition (the "
3L Contract
"). 3L is
a Toronto based financial services company that provides advisory services to metals & mining, oils
& gas, renewable energy, and technology companies. The 3L Contract is for a period of six months
for total cash fees of
$60,000
. Upon the expiration of the 3L Contract, the Company can elect to
renew on a quarterly basis by providing sufficient notice. 3L provides services such as organizing
and administering road shows, drafting additional marketing materials, providing traditional and
social media support as well as other services as required by the Company.
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 NPV
8
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 has been prepared under the
supervision of
Doug Ashton
, P.Eng.,
Suryanarayana Karri
, P. Geoph.,
Alexey Romanov
, P. Geo.,
Meghan Klein
, P. Eng.,
Dean Quirk
, P.Eng.,
Jeffrey Weiss
, P.Eng.,
Chad Hitchings
., P.L. Eng., and
Michael Munteanu
, P.Eng., each of whom is a qualified person within the meaning of NI 43-101.
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 pertaining to the use of proceeds from the Financing, services to be provided by 3L
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
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For further information:
Gregg Smith, President & CEO, [email protected]; Greg
Phaneuf, SVP Corporate Development & CFO, [email protected] ; Phone:
587.319.6220
CO: Grounded Lithium Corp
CNW 07:00e 25-SEP-23