Grounded Lithium Reports 2022 Year End Financial and Operating Results
Grounded Lithium Reports 2022 Year End Financial and
Operating Results
CALGARY, AB
,
April 26, 2023
/CNW/ - (TSXV: GRD) (OTCQB: GRDAF) - Grounded Lithium Corp. ("
GLC
" or the "
Company
")
announces our financial and operating results for the three and twelve month period ended
December 31, 2022
. Selected financial
and operational information is set out below and should be read in conjunction with the Company's
December 31, 2022
financial
statements and the related management's discussion and analysis, which are available for review at
www.sedar.com
or the
Company's website at
www.groundedlithium.com
.
2022 Financial and Operational Highlights
On
August 22, 2022
, the Company successfully closed the reverse takeover (the "
RTO
") of VAR Resources Corp. ("
VAR
")
pursuant to the Amalgamation Agreement dated
February 10, 2022
among VAR, VAR Resources (Newco) Corp. and the
Company. GLC's common shares commenced trading on the TSX Venture Exchange ("
TSXV
") on
August 25, 2022
and trading
on the OTCQB Venture Market ("
OTCQB
") on
December 9, 2022
;
Over the course of 2022, the Company increased its land base more than four-fold. GLC's land position as at the end of the
calendar year totaled just over 300 sections (~78,000 hectares), and GLC added a further 33 sections of highly prospective
acreage in the first quarter of 2023, bringing current land holdings to 333 sections (~86,000 hectares);
During the third quarter, the Company completed the drilling of our first 100 percent owned lithium focused test well in
Western
Saskatchewan
on the Company's Kindersley Lithium Project ("
KLP
"), only the second such well in the entire Province of
Saskatchewan
. The well targeted key zones within the Duperow/
Leduc
formation and is highlighted in the Company's most
recent National Instrument 43-101 Technical Report, which is available for review at
www.sedar.com
. During production testing
in the fourth quarter, the well delivered brines free of hydrocarbons and sour gas impurities. At various points during the
production testing, staff collected a number of brine samples which were tested through controlled third-party laboratories and
demonstrated concentrations between 74 and 81 mg/l of elemental lithium and confirmed a potential sustained productivity rate
of 19,500 bbls/d of brine;
On
October 19, 2022
, the Company announced the execution of a Direct Lithium Extraction ("
DLE
") Testwork Support &
Evaluation contract with Hatch Ltd. ("
Hatch
"). Working with GLC's in-house expertise, Hatch advanced the Company's strategy
to evaluate available DLE alternatives and ultimately choose the optimal technology that preferentially extracts lithium from the
Company's brine resources. Subsequent to year-end, the Company announced key developments on this initiative, namely the
selection of the top two candidates and the commencement of KLP brine testing sourced from our first lithium well at the
respective labs of these candidates;
On
December 20, 2022
, the Company filed an updated National Instrument 43-101 Technical Report on the KLP assessing the
inferred resource of lithium carbonate equivalent ("
LCE
") for the KLP at 3.7 million tonnes, representing a 28 percent increase
from the prior report. Subsequent to year-end, a third technical report prepared by certain qualified persons at Sproule
Associates Limited assessed the KLP at 4.2 million tonnes of inferred resources of LCE, which included our tuck-in acquisition
completed during Q1 2023;
The Company initially capitalized its treasury with a
$3.9 million
non-brokered financing in
December 2021
and
January 2022
. A
further
$2.4 million
was received upon completion of the RTO. On
November 4, 2022
the Company completed a
$3.0 million
non-brokered private placement of special warrants. Over the 12 month period, the Company was able to raise an aggregate
of
$9.3 million
to fund our activities to grow and define our resource position
Financial Results
(CAD$, except per share amounts and common shares outstanding)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2021
2022
2021
FINANCIAL RESULTS
Net comprehensive loss
22,46,228
3,44,452
69,78,543
3,76,610
Per share - basic and diluted
0.04
0.04
0.18
0.11
Cash flow used in operating activities
19,65,105
1,52,530
38,34,198
1,85,001
Per share - basic and diluted
0.03
0.02
0.10
0.05
Funds flow used in operations
21,10,192
2,90,453
38,75,411
3,22,611
Per share - basic and diluted
0.04
0.04
0.10
0.10
Capital expenditures
Capital expenditures
5,93,497
55,672
23,33,815
1,59,492
Liquidity
Working capital surplus
25,87,236
21,90,625
25,87,236
21,90,625
Common shares outstanding
Weighted average - basic and diluted
5,68,72,750
80,50,227
3,80,66,047
33,91,220
Outstanding, end of period
5,68,72,750
2,03,48,415
5,68,72,750
2,03,48,415
Operational and Corporate Update
During 2022, we continued to accomplish several corporate, operational, and financial objectives and thereby established the
foundation from which to drive the enterprise forward all on fronts for the benefit of stakeholders. This was partly accomplished by
successively higher capital raising initiatives together with a debt-free balance sheet.
Our immediate tasks ahead of us now involve the validation of the resource base and carrying out feasibility studies with respect to
advancing commercial production. Our dedicated team is motivated to achieve commercial production on our initial project quickly to
take advantage of the compelling macro-economic environment. Our 2023 plans include the submission of our maiden preliminary
economic assessment ("
PEA
") on Phase 1 of the KLP. We expect that our PEA will present an independent economic validation of
an initial 10,000 tonnes/yr project. Following this and the results soon to be obtained from independent lab pilot studies, critical next
steps involve the construction and operation of an appropriately sized field pilot during 2023. This critical operational milestone will
be dovetailed with further capital raising, inclusive of planned non-dilutive government funding programs. At the same time, we will
continue our land acquisition strategy where opportunities meet and exceed our geological and economical thresholds.
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
. 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. 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 choosing a DLE extraction technology, validating
GLC's resource base and carrying out feasibility studies with respect to commercial production, potential productivity rates, filing the
PEA and the results of the PEA, constructing and operating an appropriately sized field pilot during 2023, and GLC's vision of
becoming a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition.
Among the important factors 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 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; volatility in the trading price of
the common shares of the Company; 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.
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For further information:
Please contact: Gregg Smith, President & CEO, [email protected]; Greg Phaneuf, SVP
Corporate Development & CFO, [email protected], Phone: 587.319.6220
CO: Grounded Lithium Corp
CNW 06:00e 26-APR-23