CALGARY, Alta., September 29, 2022 /CNW/ – (TSXV: GRD) – Grounding Lithium Corp. (“CGL“or the”Company”) is pleased to announce that it has entered into an agreement with Red Cloud Securities Inc. (“red cloud“or the”Agent“) to act as sole agent and sole bookrunner in connection with a best efforts private placement for aggregate gross proceeds of up to $5,000,000 (there “Offer“) by issuing a maximum of 20,000,000 units (the “Units“) at the price of $0.25 per unit. red cloud will have an option (the “Agent Option“) to offer for sale up to an additional 10% of the number of Units sold under the Offer, which Agent’s Option may be exercised, in whole or in part, at any time up to 48 hours before the closing of the offer.
Each Unit will consist of one ordinary share of the Company (a “Ordinary share“) and one-half common share purchase warrant (each whole warrant, one “To guarantee“). Each warrant may be exercised to acquire one common share (a “Warrant action“) at the price of $0.50 per Share with Warrant for a period of 24 months from the closing of the Offer.
The Company intends to use the net proceeds of the Offering for its ongoing operations both in the field and in the laboratory as the Company works towards achieving two important near-term goals: (1) l engagement of an internationally renowned engineering firm to assist and ultimately recommend the selection of the chosen extraction technology for GLC’s brine resources, and (2) the completion of a preliminary economic assessment on the Kindersley Project Company lithium. The achievement of these two short-term goals paves the way for further operational and valuation milestones as the Company makes measurable progress towards its commercial production goal.
The closing of the Offer is expected around the week of October 17, 2022or on a date agreed between the Company and the Agent (the “Closing“) and is subject to certain conditions, including, but not limited to, obtaining all necessary approvals, including the approval of the TSX Venture Exchange (“TSXVThe Units and the securities underlying the Units to be issued under the Offer will have a hold period of four months and one day from the respective issue date.
At closing, the Company will pay to the Agent a cash commission equal to 7.0% of the aggregate gross proceeds of the Offering (including in respect of any exercise of the Agent’s Option) other than in respect of any unit issued to purchasers on a Presidential List for which no commission will be paid. The Company will also grant the Agent, on the Closing date, a non-transferable brokerage mandate (the “Broker mandate“) equal to 7.0% of the aggregate number of Units sold under the Offering (including with respect to any exercise of the Agent’s Option) other than with respect to Units issued to purchasers on a President’s list for which no commission will be paid Each Broker Warrant will entitle the holder thereof to purchase one Common Share at an exercise price per Broker Warrant equal to $0.25 for a period of 24 months following Closing.
GLC advises that certain insiders of the Company may participate in the offering, which will be made pursuant to the exemptions available to related parties under Multilateral Instrument 61-101. The Offering is subject to TSXV approval.
Allocation of stock options
The Company also announces its intention to grant, at closing, 2,000,000 additional stock options to certain officers, employees, directors and consultants of the Company at an exercise price of $0.25. Options granted will be granted in accordance with the Company’s approved stock option plan. The granting of options is subject to the approval of the TSXV.
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 on its targeted land holdings in southwestern Saskatchewan. GLC’s multi-faceted business model involves the consolidation, delineation, exploitation and ultimate development of its opportunity base to achieve our vision of building a premier, environmentally responsible Canadian lithium producer. , supporting the global energy transition.
This press release may contain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws. Opinions, forecasts, projections and statements regarding future results events are forward-looking information, forward-looking statements or financial outlook (collectively, “forward-looking statements“) within the meaning of applicable Canadian securities laws. Such 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 that such forward-looking statements continue to be true as of any subsequent date. Although GLC believes that the underlying assumptions and expectations reflected in such forward-looking statements are reasonable, it cannot guarantee that such assumptions and expectations will prove to be correct. Such statements include , but are not limited to statements regarding the offering, including the number of units sold, gross offering proceeds, use of offering proceeds, timing and the Company’s ability to satisfy on the terms of the TSXV and the completion of the Offer, the achievement of project milestones, the commercialization of GLC’s operations and GLC’s vision to become the best in e class, environmentally friendly, Canadian lithium producer serving the global energy transition.
Important factors that could cause actual results to differ materially from those indicated by these forward-looking statements include: GLC’s expectation that our operations will Western Canada, unexpected problems may arise due to technical difficulties and operational difficulties that impact the production, transportation or sale of our products; geographical and weather conditions can have an impact on production; the risk that current global economic and credit conditions could impact commodity prices and consumption more than GLC currently expects; failure to obtain financing on the terms set forth herein or on other reasonable terms; risks related to the Company’s ability to obtain the approvals required to complete the Offer on the terms announced; the volatility of the market price of the Company’s common shares; the risk that unforeseen delays and difficulties in the development of currently owned properties may arise; the failure of drilling to result in commercial projects; unforeseen delays due to limited availability of drilling equipment and personnel; and 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 press release does not constitute an offer to sell or the solicitation of an offer to buy 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 press release.