Grounded Lithium Reports Third Quarter 2023 Financial and Operating Results
Grounded Lithium Reports Third Quarter 2023 Financial and
Operating Results
CALGARY, AB
,
Nov. 22, 2023
/CNW/ - (TSXV: GRD) (OTCQB: GRDAF) - Grounded Lithium Corp. ("
GLC
" or the "
Company
")
announces our financial and operating results for the three month period and nine month period ended
September 30, 2023
. Selected
financial and operational information is set out below and should be read in conjunction with the Company's
September 30, 2023
financial statements and the related management's discussion and analysis, which are available for review at
www.sedarplus.ca
or the
Company's website at
www.groundedlithium.com
.
Third Quarter 2023 Financial and Operational Highlights
On
July 26, 2023
, the Company announced the economic results of our maiden preliminary economic assessment ("
PEA
"). These
results represent arguably top decile results for a lithium from brine operation on a per tonne basis. At a realized sales price of
US$25,000
per tonne of lithium hydroxide monohydrate ("
LHM
"), the after-tax internal rate of return on the first 11,000 tonne LHM
per year phase of the Kindersley Lithium Project ("
KLP
") equates to 48.5% while the after-tax net present value using an 8%
discount rate is
CAD$1.3 billion
, or
US$1.0 billion
. The strong economics directly speak to the extensive geological analysis
conducted at the inception of the Company – resource plays with the lowest cost structure should rank at or near the top
compared to similar operations; and
At the end of the quarter, the Company closed a
$765,000
non-brokered private placement, with a large percentage subscribed
for by insiders of the Company. Proceeds from the offering are being allocated to general corporate purposes. The offering was a
unit offering comprised of one Class A Common Share ("
Common Share
") at a price of
$0.11
together with a ½ warrant, where a
full warrant can be exercised into a Common Share at a price of
$0.18
for a period of two years.
(CAD$, except per share amounts and common shares outstanding)
Three Months Ended Sept 30,
Nine Months Ended Sept 30,
2023
2022
2023
2022
FINANCIAL RESULTS
Net comprehensive loss
783,927
3,539,319
3,410,678
4,732,315
Per share - basic and diluted
0.01
0.09
0.05
0.15
Cash flow used in operating activities
549,952
833,496
2,688,376
1,869,033
Per share - basic and diluted
0.01
0.02
0.04
0.06
Funds flow used in operations
542,677
704,651
2,700,693
1,765,219
Per share - basic and diluted
0.01
0.02
0.04
0.06
Capital expenditures
Capital expenditures
999
1,062,102
451,846
1,740,318
Liquidity
Working capital surplus
385,560
2,394,958
385,560
2,394,958
Common shares outstanding
Weighted average - basic and diluted
70,034,345
40,308,155
69,436,671
31,728,257
Outstanding, end of period
76,613,873
56,872,750
76,613,873
56,872,750
Operational and Corporate Update
The Company's go-forward business plan is robust however relies on external sources of capital to progress. The Company continues
to evaluate a number of alternative strategies to allow us to execute on our stated business goals. In addition to traditional methods of
raising capital in which insiders will continue to participate, we actively pursue strategies which include:
Seeking funds under various government programs which could defray the cost of both drilling and field pilot operations; and
Seeking funding and partnerships with one or more strategic partners. A strategic partner provides multiple benefits including
experience in either responsible resource development or technologies related to our emerging industry, an interest in realizing the
robust value identified in our PEA, and/or a desire to support energy transition. The Company maintains current dialogue with a
number of qualifying strategic partners.
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 regarding the internal rates of return and net present values of the KLP, the KLP
ranking as a top decile project, the future price of lithium, seeking funding under government programs, seeking funding and partnership
opportunities, 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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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 22-NOV-23