Grounded Lithium Announces Private Placement of $500,000 With Insider Commitment of $250,000 /NOT FOR DISSEMINATION IN
Grounded Lithium Announces Private
Placement of $500,000 With Insider
Commitment of $250,000
/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. 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 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 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
View original content:
http://www.newswire.ca/en/releases/archive/September2023/07/c1230.html
%SEDAR: 00054333E
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 07-SEP-23