Grounded Lithium Announces Strategic Land Acquisition in Core Area
- Total consideration -
$425,000comprised of cash consideration of $175,000and the issuance of $250,000of GLC common shares ("Shares") based on the 10-day volume weighted average trading price of the Shares at Closing. For illustrative purposes, if the issuance price was based on the 10-day volume weighted average trading price of the Shares as of the date hereof, the number of Shares issued as consideration would equal 945,500 common shares or 1.4% of the Company's current outstanding Common Shares;
- The Shares issued will be subject to a contractual escrow to be released in equal 1/3rd tranches on the 4, 8 and 12 month anniversaries from Closing;
- The price of the Assets equals
$50per hectare, which is substantially lower than recent land sale processes in the nearby area (see "Rationale and Strategic Benefit of the Acquisition" below), and the Company believes the acquisition is accretive based on current valuation metrics such as enterprise value per tonne; and
- This acquisition directly adjoins and is contiguous with the Company's lands where we previously announced our initial development plan for our first commercial project, and thus represents a strong strategic asset for future growth and development.
Following the Closing, the Company's 300 section land position and development plan for the KLP is depicted in the following map. The Company expects that all of our Crown and freehold land positions can be developed independently while respecting the terms of the individual agreements, and we foresee no need to pool lands between the various mineral rights owners. Our development plans include drilling on both Crown and freehold land holdings to satisfy future work commitments and maintain the lands with all parties.
The acquisition adds 12% to the Company's prospective land base within the KLP, while adding 11% to the Company's overall land position. Pursuant to the terms of the original lease agreement governing the Assets, the Company will have six years to meet capital commitments on the Assets. From a broader field development plan, future work commitments on both Crown and freehold lands will be satisfied by slightly relocating a few locations in our first phase field development plan, with no impact on costs or anticipated outcomes, as communicated in our press release dated
At present, the KLP has been independently assessed by
Further, the acquisition of the Assets is competitive compared to recent Crown land sales in the nearby area where successful bids have exceeded
"As is typical in sub-surface resource development plays, accretive tuck-in acquisitions once a dominant land position is established become excellent vehicles by which to enhance shareholder value," commented
GLC is a publicly traded lithium brine exploration and development company that controls approximately 3.7 million metric tons of lithium carbonate equivalent of inferred resource over our focused land holdings in
Scientific and technical information contained in this press release has been prepared under the supervision of
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 timing of Closing, satisfying conditions precedent to Closing, GLC's landholdings following Closing, GLC's land development plans, operational and infrastructure efficiencies associated with consolidating land positions, the Asset acquisition being accretive to the Company's current price per tonne of inferred LCE, the ability of the Company to enhance shareholder value, the Company's lands supporting multiple commercial projects, commercializing the Company's projects, and GLC's vision of becoming a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition.
Among the important factors, risks, uncertainties and assumptions 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
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
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