Grounded Lithium Announces Non-Core Acquisition of Oil and Gas Rights
Grounded Lithium Announces Non-Core Acquisition of Oil
and Gas Rights
CALGARY, AB
,
Jan. 14, 2026
/PRNewswire/ -- (
TSX.V: GRD OTCQB: GRDAF
) - Grounded Lithium Corp. ("
GLC
",
"Grounded"
,
or the "
Company
") announces we have entered into a definitive agreement dated
December 30, 2025
(the "
Purchase
Agreement
") to acquire (the "
Acquisition
") a minority interest in oil and gas mineral rights in
Saskatchewan
with the strategic
rationale to supplement cash flow and working capital reserves as the Kindersley Lithium Project ("
KLP
") continues to advance
with our partner, Denison Mines Corp ("
Denison
"). Under the Purchase Agreement, Grounded will remit approximately
$25,000
in
cash consideration to a related company and will receive a 30% mineral interest in approximately four sections located in south-
central
Saskatchewan
near
Lloydminster
, an area with a history of low-risk, conventional, shallow, medium to heavy oil targets (the
"
Lands
"). The related company, Analogy Capital Advisors Inc. ("
Analogy Capital
") is an entity co-owned and controlled by Mr.
John D. Wright
, Chairman of GLC. As such, the Acquisition is a non-arm's length transaction. Analogy Capital controls a 70%
working interest in these sections, therefore, post-Acquisition, Analogy Capital will retain a 40% working interest in the Lands. The
remaining 30% is owned by an unrelated third-party corporate entity (the "
Third Party
"). No finders fees were paid on the
Acquisition.
Figure 1:
Deal Structure Map (CNW Group/Grounded Lithium Corp.)
As a second and immediate step, Grounded and the Third Party will farm-out (the "
Farmout
") their combined 60% interest to a
newly created Limited Partnership
,
the Saskatchewan Renewal Drilling Limited Partnership #1 ("
SRDLP
"), which successfully
raised
$900,000
from various subscribers to invest in oil and gas opportunities. Key terms of the Farmout involve the recovery of
capital by SRDLP through a share of net operating income ("
NOI
"). Until SRDLP has recovered its eligible capital and operating
costs associated with various drilling activities, described in greater detail below, from its share of NOI ("
Payout
"), SRDLP will
retain 95% of the 60% share of NOI. Post-Payout, this percentage will drop to 55% of NOI. From a Grounded perspective, we
receive 1.5% of NOI pre-Payout and 13.5% of NOI post-Payout. Grounded will provide the operatorship of the drilling and
production activities associated with the Lands. Time and effort spent managing oil and gas activities as the operator will be
formalized through standard joint operating agreements and charged back to the SRDLP and Analogy Capital. under such
agreements.
The combined group, comprised of Grounded, Analogy Capital and the Third Party has collectively agreed to drill up to two
exploratory/development wells into a multiple zone
Mannville
sequence on the Lands. Wells drilled will be to a shallow depth of less
than 700 meters, minimizing capital expenditures. The wells to be drilled offset older legacy wells which never produced but
provide evidence supporting future success. It is anticipated that we may encounter up to three separate zones with oil potential.
At these shallow depths and current commodity pricing, it is possible to drill, complete, equip and commence production from these
wells, which could generate payback periods of less than one year. We believe the Lands can support wells beyond the two wells
initially contemplated. Pending government well licensing approval, we anticipate operations to commence early in 2026.
The Acquisition constitutes a "related party transaction" as such term is defined in Multilateral Instrument 61-101 –
Protection of
Minority Security Holders in Special Transactions
("
MI 61-101
"). In completing the Acquisition, Grounded is relying on exemptions
from the formal valuation and minority shareholder approval requirements set out in sections 5.5(a) and 5.7(1)(a) of MI 61-101,
respectively, as neither the fair market value of the interests acquired, nor the fair market value of the consideration therefore,
exceeds 25% of Grounded's market capitalization.
"Grounded is opportunistically leveraging off our internal oil and gas technical expertise to diversify the resource portfolio of the
Company and in doing so, provide a supplemental source of NOI to advance our interests in the KLP," stated
Gregg Smith
,
President & CEO. "We see this low-risk oil and gas venture as complimentary to our lithium business. Post-Payout, we expect
noteworthy cash flows which will be used to satisfy future working capital requirements, and, should this venture continue and
grow, proceeds from it have the potential to fund, in part, our share of future joint venture commitments for the KLP. We fully
appreciate our primary public purpose is to provide exposure to critical minerals, and that has not changed – this transaction
however provides more certainty that Grounded will have a material seat at the table as the KLP continues to advance through the
various project execution states."
The Acquisition and the Farmout has been conditionally approved by the TSX Venture Exchange. Closing of the transaction is
expected to occur pending minor filing requirements.
About Grounded Lithium Corp.
GLC is a publicly traded lithium brine exploration and development company that controls approximately 1.0 million metric tonnes of
Measured & Indicated lithium carbonate equivalent mineral resource and approximately 3.2 million metric tonnes of Inferred lithium
carbonate equivalent resource over our focused land holdings in
Southwest Saskatchewan
as per the Company's updated PEA.
The updated PEA, titled "
NI 43-101 Technical Report: Preliminary Economic Assessment Kindersley Lithium Project – Phase 1
Update
" dated
November 7, 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.,
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 and independent consultants to
the Company.
Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements and forward-looking information within the meaning
of applicable Canadian securities laws. Forward-looking statements or information typically contain statements with words such as
"anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar words suggesting future outcomes or statements.
Forward-looking statements or information in this press release include, but are not limited to, statements regarding: the
anticipated outcomes and benefits of the Acquisition and the Farmout; the entry into joint operating agreements and the terms
thereof; the timing, number, specifications and success of planned exploratory/development wells; the potential to encounter
multiple oil-bearing zones; the ability to drill, complete, equip, and commence production quickly and at minimized capital
expenditures; anticipated payback periods and rates of return; the belief that the Lands can support numerous additional wells; the
expectation that operations will commence late in 2025 or early 2026; the anticipated benefits of diversifying the Company's
resource portfolio; the expectation that the transactions described in this press release will provide a supplemental source of NOI
to advance Grounded's interests in the KLP; the expectation of future cash flows and their potential use for working capital and
future joint venture commitments for the KLP; Grounded having a material seat at the table with respect to the advancement of the
KLP; Grounded's continued focus on critical minerals; Grounded's mineral resources and the value thereof; and Grounded's vision
of becoming a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition. The
forward-looking statements and information contained in this press release are expressly qualified by this cautionary statement.
Forward-looking statements in this press release are based on a number of assumptions, including, but not limited to: the ability of
Grounded to fund, advance, and develop its projects; the presence and recoverability of commercially viable oil reserves/resources
from the acquired interests; the ability to obtain necessary regulatory, environmental, and partner approvals and permits; the
availability and cost of capital, equipment, and personnel; anticipated commodity prices; the ability to successfully drill, complete,
and produce from the planned wells; the ability to realize anticipated payback periods, rates of return, and cash flows; the demand
for Grounded's products; and the ability to execute the Company's business plan as described.
Although Grounded believes that the expectations reflected in such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements and information because Grounded can give no assurance that
such expectations will prove to be correct. Actual results may differ materially from those expressed or implied by such forward-
looking statements due to known and unknown risks, uncertainties, and other factors, including, but not limited to: technical and
operational difficulties; the ability to obtain necessary regulatory approvals and permits; the availability and cost of equipment and
personnel; fluctuations in commodity prices and market conditions; the failure to achieve anticipated drilling results or commercial
production; delays or changes in project execution; the ability to raise sufficient capital on reasonable terms; health, safety, and
environmental risks; and the other risk factors detailed in Grounded's Management's Discussion and Analysis for the periods ended
December 31, 2024
and
September 30, 2025
, and in other documents Grounded files from time to time with securities regulatory
authorities in
Canada
(available on SEDAR+ at sedarplus.ca).
The forward-looking statements and information contained in this press release are made as of the date hereof and except where
required by law, Grounded undertakes no obligation to update or revise any forward-looking statements or information, whether as
a result of new information, future events or otherwise. The fact that this press release remains available does not constitute a
representation by Grounded that the Company believes these forward-looking statements continue to be true as of any
subsequent date.
This press 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 press release.
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For further information:
For more information, please contact: Gregg Smith, President & CEO; Greg Phaneuf, SVP Corporate
Development & CFO, Phone: 587.319.6220, Email: [email protected]
CO: Grounded Lithium Corp.
CNW 07:00e 14-JAN-26