Grid Metals Commencing Drilling at Campus Creek Lithium Project Buys Out Joint Venture Partner Option
GRID METALS COMMENCING DRILLING AT CAMPUS CREEK LITHIUM PROJECT
BUYS OUT JOINT VENTURE PARTNER OPTION
Toronto, Ontario, July 5, 2023 – Grid Metals Corp. (the "Company") (TSXV:GRDM OTCQB:MSMGF)
announced the commencement of a drill program at its Campus Creek Lithium Property near Ignace
Ontario and announced the buy out of a joint venture partner option to purchase an effective 15%
additional interest in the Campus Creek and Donner Lake Lithium joint ventures. The option buy out is in
return for 7,142,858 common shares of the Company and is subject to regulatory approval.
Campus Creek Lithium Project Drilling to Commence
Grid has signed a drill contract with Azi Drilling Ltd of Dryden, Ontario to test the Campus Creek Lithium
Project located near Ignace, Ontario which is located approximately 240 km northwest of Thunder Bay,
Ontario. Drilling is expected to commence early to mid July on the Highstone Dyke. The target is a
surface spodumene (Lithium) bearing occurrence that returned an Li2O select grab sample value of
4.35% along with other lower values. ( see GRDM NR Oct 5th, 2021 and table below.) Approximately
1,000 meters of drilling is planned in the first phase of drilling. The phase one drilling at Campus Creek is
designed to understand the orientation of the lithium-bearing dyke and possible extensions.
Highlights from analyses of selected grab samples taken from the initial showing of spodumene-
bearing pegmatite at the Highstone Dyke, Campus Creek Lithium Project:
Sample Easting (m) Northing (m)
Elevation
(m)
Li2O
(%)
Cs2O
(%)
Rb2O
(%)
Ta
(ppm)
Fe
(%)
B419026 599255 5462885 513 4.35 0.01 0.03 88 0.54
B419085 599257 5462880 514 1.50 0.08 0.19 179 0.49
B419088 599255 5462883 482 1.42 0.18 0.45 304 0.45
B419027 599257 5462883 513 0.88 0.12 0.45 71 0.37
B419089 599256 5462882 482 0.68 0.09 0.28 227 0.89
B419103 599256 5462874 516 0.22 0.02 0.11 33 0.53
Above: Campus Creek Project Geological Map
Above: Campus Creek 2023 Drill Location Map
QA/QC, and Analytical Work
All samples referenced in this news release were analysed at Actlabs (Ancaster) using a sodium peroxide
fusion digestion method and a variety of analytical finishes including atomic absorption, XRF, ICP and
ICP-MS. Grid maintains a rigorous QA/QC protocol for all of its exploration programs including inserting
of analytical blanks, duplicates and commercial standards at regular intervals (generally one QA/QC
sample is inserted every ten samples). The results reported herein all passed Grid's QA/QC thresholds
for standard and blank accuracy for the key rare metals of interest on the property, i.e., lithium, cesium
and tantalum.
Carey Galeschuk, P .Geo., has reviewed and approved the technical content of this release.
Buy Out of Joint Venture Partner Option
In 2021, the Company sold a 25% interest in its Donner Lake and Campus Creek lithium projects to
Lithium Royalty Corp. (LRC), which at the time was controlled by investment funds managed by Waratah
Capital Advisors Ltd. The Company entered into joint venture agreements with LRC to develop each of
the projects (the Joint Ventures). Grid retained a 75% interest in the projects and is the operator of the
joint ventures.
Under the terms of the original November 2021 financing and purchase agreement, the Company
created a single purpose subsidiary in order to hold its Joint Venture interests and granted LRC an option
(the Option) to acquire 20% of that subsdiary, which, if exercised, would have increased LRC’s effective
interest in the joint ventures to 40%.
In March 2023, LRC assigned its rights and interests in the Joint Ventures and the Option to Li Equities
Investments LP (LEI), an investment fund managed by Waratah Capital Advisors. Grid and LEI have now
entered into an agreement dated July 3, 2023 (the Termination Agreement) to cancel the Option in
consideration for the Company issuing 7,142,858 common shares of Grid to LEI.
Upon completion of the Termination Agreement, LEI will own a total of 25,105,262 common shares of
Grid. The Termination Agreement is subject to the approval of the TSX Venture Exchange (TSXV) and
other customary closing conditions. If the approval of the TSXV is not obtained within 90 days, LEI has
the right to cancel the Termination Agreement.
Upon completion of the Termination Agreement, Grid will be able to continue to actively advance its
75% project interests through the joint venture structure. The Donner Lake Joint Venture is targeting
near term production through a toll milling agreement with the currently producing Tanco Mine.
About Grid Metals Corp.
Grid Metals is focused on both lithium and Ni -Cu-PGM in the Bird River area approximately 150
km north east of Winnipeg Manitoba. The Donner Lake Lithium Property is a 75% owned property
subject to a joint venture agreement. In addition to activity at Donner Lake the Company has the
Falcon West Lithium Property located southeast of Winnipeg and a PEA stage Ni -Cu-PGM-Co
project (Makwa-Mayville) undergoing exploration and development activity.
On Behalf of the Board of Grid Metals Corp.
For more information about the Company please see the Company website at
www.gridmetalscorp.com or contact:
Robin Dunbar - President, CEO & Director Telephone: 416-955-4773
Email: [email protected]
David Black - Investor Relations Email: [email protected]
We seek safe harbour. This news release contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the
meaning of the Securities Act (Ontario) (together, "forward -looking statements"). Such forward-looking
statements include the Company’s closing of the proposed financial transactions, sale of royalty and
property interests. the overall economic potential of its properties, the availability of adequate financing
and involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements expressed or implied by such forward- looking statements to be materially
different. Such factors include, among others, risks and u ncertainties relating to potential political risk,
uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses,
physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuati ons in the
price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project
parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely
basis, and other risks and unc ertainties, including those described in the Company's Management
Discussion and Analysis for the most recent financial period and Material Change Reports filed with the
Canadian Securities Administrators and available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulations 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.
This news release does not constitute an offer of securities for sale in the United States. The securities
being offered have not been, nor will they be, registered under the United States Securities Act of 1933,
as amended , and such securities may not be offered or sold within the United States absent U.S.
registration or an applicable exemption from U.S. registration requirements.