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CALGARY,
AB, Sept. 29,
2022 /CNW/ - (TSXV: GRD) - Grounded Lithium Corp.
("GLC" or the "Company") is pleased to announce it
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
(the "Offering") through the issuance of up to 20,000,000
units (the "Units") at a price of $0.25 per Unit. Red
Cloud will have an option (the "Agent's Option") to
offer for sale up to an additional 10% of the number of Units sold
in the Offering, which Agent's Option is exercisable, in whole or
in part, at any time up to 48 hours prior to the closing of the
Offering.
Each Unit will be comprised of one common share of the Company
(a "Common Share") and one-half of one Common Share purchase
warrant (each whole warrant, a "Warrant"). Each Warrant
shall be exercisable to acquire one Common Share (a "Warrant
Share") at a price of $0.50 per
Warrant Share for a period of 24 months from the closing of the
Offering.
The Company intends to use the net proceeds from the Offering
for its ongoing operations both in the field and in the lab as the
Company works toward the completion of two important short-term
objectives: (1) engagement of an internationally recognized
engineering firm to assist and ultimately recommend selection of
the chosen extraction technology for GLC's brine resources, and (2)
completion of a preliminary economic assessment on the Company's
Kindersley Lithium Project. Attainment of these two
short-term objectives sets the stage for further operational and
valuation milestones as the Company measurably moves towards our
goal of commercial production.
The Offering is scheduled to close on or about the week of
October 17, 2022, or such date as
agreed upon between the Company and the Agent (the
"Closing") and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals
including the approval of the TSX Venture Exchange ("TSXV").
The Units and the underlying securities of the Units to be issued
under the Offering will have a hold period of four months and one
day from the respective date of issuance.
At Closing, the Company will pay to the Agent a cash commission
equal to 7.0% of the aggregate gross proceeds arising from the
Offering (including in respect of any exercise of the Agent's
Option) other than in respect of any Units issued to purchasers on
a president's list for which no commission will be paid. The
Company will also grant the Agent, on the date of Closing, a
non-transferable broker warrant (the "Broker Warrant") equal
to 7.0% of the total number of Units sold pursuant to the Offering
(including in respect of any exercise of the Agent's Option) other
than in respect of any 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 the
Closing.
GLC advises that certain insiders of the Company may participate
in the Offering, which will be completed pursuant to available
related party exemptions under Multilateral Instrument 61-101. The
Offering is subject to TSXV approval.
Grant of Stock Options
The Company also announces the intention to grant upon Closing,
an additional 2,000,000 stock options to certain officers,
employees, directors and consultants of the Company at a strike
price of $0.25. Options granted
will be pursuant to the Company's approved stock option
plan. The grant of the options is subject to approval by 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 over its focused land holdings in Southwest
Saskatchewan. GLC's multi-faceted business model involves the
consolidation, delineation, exploitation and ultimate development
of its opportunity base to fulfill our vision to build a
best-in-class, environmentally responsible, Canadian lithium
producer supporting the global energy transition shift.
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 the Offering including the
number of Units sold, the gross proceeds from the Offering, use of
proceeds of the Offering, the timing and ability of the Company to
satisfy the conditions of the TSXV and completion of the Offering,
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; risks relating to
the ability of the Company to obtain required approvals to complete
the Offering on the terms announced; 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
