Grid Metals Corp. (TSXV:GRDM)(OTCQB:MSMGF) has closed a financing transaction with leading pure play battery royalty and streaming company, Lithium Royalty Corp. (LRC).
The Transaction consists of a private placement financing, royalty sales on two properties pertaining to lithium minerals and asset sales of 25% interests in lithium rights on the two properties ( Mayville Lithium and Campus Creek).
Total funding to Grid in connection to the proposed Transaction is approximately C$6.3 million. The working capital of Grid has increased to approximately C$8.8 million.
Terms of the proposed private placement portion of the Transaction includes:
- The company has issued 13,962,404 shares in the private placement at an issue price of $0.1182 per share for proceeds of $1,650.356. There are no warrants or finders fees issuable as part of the private placement.
- The company has received aggregate proceeds of US$1.5 million from the sale of 25% interests of the two lithium properties to LRC.
- The company received US$1,250,000 for a 25% interest in the lithium rights to the Mayville Property and US$250,000 for a 25% interest in the lithium rights to the newly acquired Campus Creek Property which is located northwest of Thunder Bay. A joint venture for each project has been formed commencing as the date hereof with each party funding their respective ( 75/25 ) interest. A party diluting to less than a 5% interest will convert to a 1% NSR.
- The company has also received US$ 2.25 million from the sale of a 2% gross overriding royalty on lithium and related mineral rights for the two properties.
- The company plans to spend proceeds from the sale of the royalties on lithium exploration. It is the intention of Grid to form a dedicated lithium subsidiary and list or sell the subsidiary later in 2022 (depending on market conditions and exploration results )
The Mayville Lithium Property comprises the Donner Lake pegmatite field and is located immediately south of the company’s Mayville Cu-Ni-PGE deposit located in the Bird River Greenstone Belt in southeastern Manitoba.
There are numerous documented lithium bearing pegmatite dykes on the Grid LRC property including a historical resource of lithium. Part of the Grid/LRC property comprises claims that Grid acquired from Tantalum Mining Corporation of Canada ( the Tanco Claims) who is the current operating of the Tanco Mine, currently Canada’s only lithium concentrate producer. Tanco has a right to purchase lithium products produced from the Grid/LRC Tanco Claims at commercial terms.
The Bird River Greenstone belt hosts multiple lithium bearing pegmatite fields (including the Donner Lake pegmatite field on the Grid/LRC Mayville claims ) and the belt has attracted recent investment and exploration activity including from Mineral Resource Limited, currently the world’s 5th largest lithium producer who together with New Age Metals Inc. recently completed a drill programme adjacent to the Grid/LRC Lithium joint venture.
Grids Base Metal and PGE Assets
The company has pending drill results from its Bannockburn Nickel Project with additional results expected to be released shortly.
The company holds valid exploration permits for drilling at East Bull Lake ( palladium), Bannockburn ( nickel ) and Makwa Mayville ( lithium, nickel, copper and platinum group metals ).
For further information please visit: http://www.gridmetalscorp.com.