Grounded Lithium Announces Robust $4.5 Million Budget Funded by Denison Mines for the Kindersley Lithium Project
Grounded Lithium Announces Robust $4.5 Million Budget Funded by
Denison Mines for the Kindersley Lithium Project
CALGARY, AB
,
Sept. 10, 2024
/CNW/ - (TSXV: GRD) (OTCQB: GRDAF) – Grounded Lithium Corp. ("
GLC
" or the "
Company
") announces an approved budget
(the "
Budget
") for the Kindersley Lithium Project ("
KLP
") developed in collaboration with Denison Mines Corp (TSX: DML) (NYSE American: DNN) ("
Denison
")
which advances various activities to
June 2025
. The Budget reflects the estimated costs associated with the next stage of rigorous technical de-risking of the KLP
expected to conclude with the completion and filing of a pre-feasibility study ("
PFS
") for a commercial battery grade lithium operation.
The Budget totals
CAD$4.5 million
. Pursuant to the Earn-in Agreement dated
January 15, 2024
(the "
Agreement
") entered into with Denison earlier this year, the
full cost of the Budget will be funded by Denison and is comprised of the following major components:
Development of NI-43-101 compliant PFS report;
Further delineation of the resource base through additional drilling and sampling of multiple reservoir layers within the
Leduc
/Duperow sequence;
Additional brine production for secure storage and extensive testing in various pre-filtering and extraction technologies to assess the optimal technology and
metallurgical process for application at the KLP. Planned trade-off studies will determine the optimum integration of technologies for the production of battery
grade lithium, and will include:
Analysis of direct lithium extraction either by adsorption or ion-exchange; and
Processes for concentrating the eluate to a final product
Creation of an extensive depletion and recovery model to support economic analysis and optimize reservoir development.
The majority of the Budget's cost supports the geological and engineering activities that advance the commercial potential of the KLP. Minor amounts are
allocated to certain regulatory matters, internal administration and compliance costs.
Denison and the Company have commenced a request for proposal ("
RFP
") process with leading engineering service firms to author an independent PFS in
accordance with National Instrument 43-101. The PFS will further de-risk and analyze the technical and economic feasibility of the KLP and builds on the
preliminary economic assessment ("
PEA
") completed in 2023. As part of the RFP process, leading candidates recommended the completion of extensive
metallurgical lab pilot test work to facilitate a comparison between several different extraction technologies as a necessary step to complete a PFS. Based on this
process and the recommendations contained within the PFS, a future field pilot test may be designed, constructed, and operated for a sufficient period of time to
support the further advancement of the KLP.
"These exciting next steps with our technical and financial partner, Denison, represent a significant step in the advancement of the KLP, focusing on developing a
deeper understanding of the resource and its potential economics," commented
Gregg Smith
, President & CEO. "The KLP benefits from a comparatively shallow
position to access such high-quality resource in a relatively clean brine with few hydrocarbons and other deleterious minerals which is expected to support cost
savings due to our minimal prefiltering. Our collaborative stepwise budget developed over the last eight months creates value for both respective shareholder
bases as we progress forward with our next field efforts and reservoir analysis initiatives towards a thoroughly considered and rigorous PFS."
Earn In Agreement Impact
Pursuant to the Agreement, Denison holds an option to earn a working interest ("
WI
") in the KLP by sole funding project expenditures. Should Denison fund
CAD$2.2 million
of project expenditures, it will have fulfilled its Phase 1 conditions and earned a 30% in the KLP. Upon completion of this Budget, Denison will
have incurred in excess of
CAD$5.0 million
, inclusive of pre-Budget expenditures to date, of the
CAD$6.0 million
cumulative project expenditures required to
complete Phase 2 of the Agreement. Should additional expenditures follow post this Budget, subsequent phases may be 'earned' into by Denison. As disclosed in
our press release dated
January 16, 2024
, the Agreement is comprised of the following phases/stages:
(all amounts in CAD$000's except as stated)
Earn-in Option Phase
Phase 1
Phase 2
Phase 3
Investment
WI% at End
of Phase
Investment
WI% at End
of Phase
Investment
WI% at End
of Phase
Royalty Financing Payment
800
Cash Payments to GLC
-
850
1,500
Cumulative Cash Payments
800
1,650
3,150
Project Expenditures
2,200
3,800
6,000
Cumulative Project Expenditures
2,200
6,000
12,000
Total Contributions per Option Phase
3,000
4,650
7,500
Cumulative Total Contributions
3,000
7,650
15,150
Denison Working Interest in the KLP (%)
30 %
55 %
75 %
In order to complete Phase 2, Denison is required to remit a cash payment of
CAD$850,000
to the Company, which would enhance our liquidity and financial
flexibility through 2025.
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.
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 Budget and estimated costs of activities at the KLP; the completion and filing of a pre-feasibility study in respect of the
KLP; the effects of the PFS; the scale of the KLP; delineation of the KLP resource base through additional drilling and sampling; additional brine production from
the KLP; the testing of pre-filtering and extraction technologies; the technical committee's assessment of the process flow sheet; the assessment and selection of
a lithium extraction technology for the KLP; the creation of a depletion and recovery model and its use in future economic analysis and reservoir production; the
commercial potential of the KLP and GLC's understanding thereof; the selection and design of a field pilot; the funding of project expenditures by Denison and the
quantum thereof; the fulfillment of Denison's Phase 1 conditions under the Agreement; Denison's election to enter into subsequent phases under the Agreement;
additional expenditures arising in respect of the KLP; Denison earning into subsequent phases under the Agreement; Denison remitting cash payments to the
Company and the effect thereof on GLC's working capital reserves; GLC's understanding of the KLP resource and the economics thereof; the quality and
characteristics of the brine extracted at the KPL and associated cost savings; creating value for shareholders; trends in the lithium market and their affects on
economic returns; 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; Denison electing to fund project expenditures 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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For further information:
For more information, please contact: Gregg Smith, President & CEO Greg Phaneuf, SVP Corporate Development & CFO, Phone:
587.319.6220, Email: info@groundedlithium.
CO: Grounded Lithium Corp.
CNW 07:00e 10-SEP-24