CALGARY,
AB, Aug. 28, 2023 /CNW/ - (TSXV: GRD) (OTCQB:
GRDAF) - Grounded Lithium Corp. ("GLC" or the
"Company") announces our financial and operating results for
the three month period and six month period ended June 30, 2023. Selected financial and operational
information is set out below and should be read in conjunction with
the Company's June 30, 2023 financial
statements and the related management's discussion and analysis,
which are available for review at www.sedarplus.com or the
Company's website at www.groundedlithium.com.
Second Quarter 2023 Financial and
Operational Highlights
- On May 25, 2023, the Company
selected Koch Technology Solutions ("KTS"), a Koch
Engineered Solutions Company, and it's proprietary
Li-Pro™ technology as the direct lithium technology
of choice for implementation in a future field pilot. Assuming the
proposal from KTS is agreed upon by all parties, we would be
responsible for work associated with preparations of a functional
field pilot, including but not limited to, provision of sufficient
feedstock, job site and associated facility requirements such as
permits, civil works, buildings, storage tanks, access to
utilities, manpower and brine disposal. KTS would provide the pilot
extraction equipment, and the right to use the
Li-Pro™ technology together with complimentary
field support during construction and operations of the specific
extraction unit;
- During the quarter, the Company completed the Preliminary
Economic Assessment ("PEA") on the Company's Kindersley
Lithium Project ("KLP") – Phase 1. The robust economics were
announced on July 26, 2023, and
included:
-
- After-tax net present value of US$1.0
billion using an 8% discount rate and a capital investment
of US$335 million, implying an
after-tax profitability index ("PI") of nearly 4X. A PI of
nearly 4X suggests a highly accretive project with further torque
to the upside if current spot prices for battery grade lithium
material were modeled;
- After-tax internal rate of return ("IRR") of 48.5%;
and
- Payout of only 3.7 years, inclusive of a 1.5 year design and
construction phase. This is extremely rapid given a project of this
magnitude and scope.
- The full KLP development involves a phased approach which
provides several benefits stemming from economies of scale as each
phase drives the funding, performance learnings, capital
efficiencies and torque in rates of return. Prudent development of
sub-surface resource bases is critical to maximize shareholder
value.
Second Quarter 2023 Financial
& Operational Results
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(CAD$, except per share
amounts and common shares
outstanding)
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Three Months Ended June 30,
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Six Months Ended June 30,
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2023
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2022
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2023
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2022
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FINANCIAL RESULTS
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Net comprehensive
loss
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944,463
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602,545
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2,626,751
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1,192,966
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Per share - basic and
diluted
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0.01
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0.02
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0.04
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0.04
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Cash flow used in
operating activities
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407,588
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315,680
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2,138,424
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1,035,597
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Per share - basic and
diluted
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0.01
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0.01
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0.03
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0.04
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Funds flow used in
operations
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684,960
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533,556
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2,158,016
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1,060,568
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Per share - basic and
diluted
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0.01
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0.02
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0.03
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0.04
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Capital expenditures
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Capital
expenditures
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7,210
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21,498
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450,847
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678,216
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Liquidity
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Working capital
surplus
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166,415
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1,829,712
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166,415
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1,829,712
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Common shares outstanding
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Weighted average -
basic and diluted
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69,656,423
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28,119,114
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69,132,779
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27,367,204
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Outstanding, end of
period
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69,656,423
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28,119,114
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69,656,423
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28,119,114
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Operational and Corporate
Update
During the quarter the Company achieved several
operational accomplishments. This momentum will continue with a
commensurate funding strategy. The Company is evaluating a number
of alternative strategies to allow it to execute on its stated
business goals. In addition to traditional methods of raising
capital in which insiders will continue to participate, we actively
pursue strategies which include:
- Seeking funds under various government programs which could
defray the cost of both drilling and field pilot operations;
and
- Seeking funding and partnerships with one or more strategic
partners. A strategic partner provides multiple benefits including
experience in either responsible resource development or
technologies related to our emerging industry, an interest in
realizing the robust value identified in our PEA, and/or a desire
to support energy transition. The Company maintains current
dialogue with a number of qualifying strategic partners.
About Grounded Lithium
Corp.
GLC is a publicly traded lithium brine
exploration and development company that controls approximately 4.2
million metric tons of lithium carbonate equivalent of inferred
resource over our focused land holdings in Southwest Saskatchewan as of the effective
date of the PEA. The PEA, titled "NI 43-101 Technical Report:
Preliminary Economic Assessment Kindersley Lithium Project – Phase
1" dated August 9, 2023 and
effective as of June 30, 2023,
reports a Phase 1 NPV8 after-tax of US$1.0 billion with an after-tax IRR of 48.5%.
GLC's multi-faceted business model involves the consolidation,
delineation, exploitation and ultimately development of our
opportunity base to fulfill our vision to build a best-in-class,
environmentally responsible, Canadian lithium producer supporting
the global energy transition shift. U.S. investors can find current
financial disclosure and Real-Time Level 2 quotes for the Company
on https://www.otcmarkets.com/.
Qualified Persons and Technical
Report
Scientific and technical information contained in
this press release has been prepared under the supervision of
Doug Ashton, P.Eng., Suryanarayana Karri, P. Geoph., Alexey Romanov, P. Geo., Meghan Klein, P. Eng., Dean Quirk, P.Eng., Jeffrey Weiss, P.Eng., Chad Hitchings., P.L. Eng., and Michael Munteanu, P.Eng., each of whom is a
qualified person within the meaning of NI 43-101.
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 proposal from KTS to provide the direct lithium
extraction technology for the Company's field pilot project, the
future price of lithium, seeking funding under government programs,
seeking funding and partnership opportunities, 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 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 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.
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SOURCE Grounded Lithium Corp