/NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW./
CALGARY,
AB, Nov. 23, 2022 /CNW/ - (TSX.V: GRD) -
Grounded Lithium Corp. ("GLC" or the "Company")
announces our financial and operating results for the three and
nine month period ended September 30,
2022. Selected financial and operational information is set
out below and should be read in conjunction with the Company's
September 30, 2022 interim 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.
Third Quarter Financial and
Operational Highlights
- On August 22, 2022, the Company
successfully closed our previously announced reverse takeover 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;
- During the third quarter, the Company completed the drilling of
our very 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 targets key zones determined by the Company's geological model
and highlighted in the Company's National Instrument 43-101
Technical Report. Announcements regarding the results
of the completion activities and associated testing for this well
which are currently underway will be communicated in the near
future;
- On September 7, 2022, the Company
announced we successfully negotiated and executed an additional
freehold mineral right agreement with a significant landowner in
the Company's core area in Southwest
Saskatchewan (the "National Trust Permit"). The
National Trust Permit extended the Company's total landholdings by
34 sections (8,838 ha's);
- Subsequent to the quarter, the Company also added a further 12
sections (3,112 ha's) associated with additional land transactions
with PraireSky Royalty Ltd. This brings GLC's current land
position to 295 sections;
- Subsequent to the quarter, the Company announced on
October 19, 2022 we executed a Direct
Lithium Extraction ("DLE") Test Work Support and Evaluation
contract with Hatch Ltd. (the "Hatch Contract") The Hatch
Contract will span four to five months and will focus on up to four
diverse possible technologies; and
- Subsequent to the quarter, the Company announced on
November 7, 2022 we completed a
$3.0 million non-brokered private
placement of Special Warrants ("Special Warrants") at a
price of $0.25 per Special Warrant.
Each Special Warrant entitles the holder to one Unit
("Unit") of the Company, with each Unit consisting of one
Common Share ("Common Share") of the Company and one Common
Share purchase warrant ("Warrant"). Each Warrant shall
entitle the holder to acquire one Common Share at a price of
$0.50 per Warrant Share for a period
of 24 months from the closing of the offering. In total,
347,725 Finder Warrants were issued, and 12,000,000 Common Shares
and 12,000,000 Warrants will be issued upon the exercise of the
Special Warrants
Financial & Operational
Results
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(CAD$, except per
share amounts and common shares outstanding)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2022
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2021
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2022
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2021
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FINANCIAL
RESULTS
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Net comprehensive
loss
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3,539,319
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14,536
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4,732,315
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32,158
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Per share - basic and
diluted
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0.09
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-
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0.15
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-
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Cash flow used in
operating activities
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833,496
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14,584
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1,869,033
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32,471
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Per share - basic and
diluted
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0.02
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-
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0.06
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0.02
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Funds flow used in
operations
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704,651
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14,536
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1,765,219
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32,158
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Per share - basic and
diluted
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0.02
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-
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0.06
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0.02
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Capital
expenditures
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Capital
expenditures
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1,062,102
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18,123
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1,740,318
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103,819
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Liquidity
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Working capital
surplus
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2,394,958
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1,483
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2,394,958
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1,483
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Common shares
outstanding
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Weighted average -
basic and diluted
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40,308,155
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6,152,924
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31,728,257
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2,123,227
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Outstanding, end of
period
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56,872,750
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6,374,597
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56,872,750
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6,374,597
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Operational and Corporate
Update
GLC continues to advance our business plan with achievements
throughout each quarter. In particular during the third
quarter of 2022, the Company accomplished a number of objectives,
including the drilling of the Company's first 100% owned test well
on the KLP. Completion activities ensued during the fourth
quarter of 2022. Detailed analysis and testing of those
completion activities will aid in the understanding of the
formation's deliverability which is a critical component of a
lithium-from-brine commercial project. These results will be
communicated in the near future.
The Company remains focused on a number of fronts, which will
further drive shareholder value. These include but are not
limited; active operations in the field, technology assessments,
enhancing team capabilities all while maintaining a debt free
balance sheet. These initiatives continue to keep GLC on the
path to eventual commercial operations to produce battery grade
lithium feedstock. DLE technologies will continue
to advance and will be disruptive to the overall lithium
industry. Working with Hatch Ltd., the Company expects to
select a chosen DLE technology over the coming quarters setting the
stage for further project validations such as a preliminary
economic assessment, a lab pilot, feasibility studies and lastly a
field pilot or commercial demonstration facility
("CDF"). Successful conclusions at these earlier
stages are expected to provide support for further corporate
decisions to advance a commercial project.
About Grounded Lithium
Corp.
GLC is a publicly traded lithium brine exploration and
development company that controls 2.9 million tonnes of lithium
carbonate equivalent of inferred resources over our focused
landholdings in Southwest
Saskatchewan. GLC's multi-faceted business model involves
the consolidation, delineation, exploitation and ultimately
development our opportunity base to fulfill our vision to build a
best-in-class, environmentally responsible, Canadian lithium
producer supporting the global energy transition shift.
Qualified Persons
Scientific and technical information contained in this press
release has been prepared under the supervision of Doug Ashton, P.Eng, Idi
Ishaya, P.Eng, Patou Zeleke,
P.Eng and Thomas Jerome, P. Geo,
each of whom are 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 communicating the results
of the completion activities and associated testing for the
Company's first 100 percent owned lithium focused test well in
Western Saskatchewan, the term of
the Hatch Contract and the focus of technologies thereunder, the
Company's understanding of the formation's deliverability, field
operations, driving shareholder value, technology assessments,
enhancing team capabilities, maintaining a debt free balance sheet,
advancement of DLE technologies, expectations that DLE technologies
will disrupt the lithium industry, the timing of the Company
choosing a DLE technology, completing a preliminary economic
assessment, a lab pilot and a field pilot or CDF achieving project
milestones, commercializing GLC's operations, 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 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 the
terms set out herein or other 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.
SOURCE Grounded Lithium Corp