Grid Metals Corp. (TSXV: GRDM | OTCQB: MSMGF) has received conditional approval from the TSX Venture Exchange (TSXV) for the private placement financing, royalty sales and asset sales entered into with leading pure play battery royalty and streaming company Lithium Royalty Corp.
Total funding to Grid in connection to the proposed Transaction is approximately C$6.3 million.
Under the terms of the TSXV conditional approval, the private placement, royalty sales and asset sales which together comprise the Transaction, will be required to be closed concurrently after satisfactory review of all documentation by the TSXV. The targeted closing date for the Transaction of January 12, 2022 will require an extension of the normal period for closing a private placement and this extension has been granted by the TSXV.
The final closing of the proposed Transaction remains subject to final documentation and due diligence by LRC.
The Transaction
- The company will issue 13,962,404 shares in the private placement at an issue price of $0.1182 per share for proceeds of C$1,650.356.
- The company will also receive aggregate proceeds of US$1.5 million from the sale of a 25% interest its two lithium projects to LRC. The company will receive US$1,250,000 for the 25% interest in the Mayville Property and US$250,000 for the 25% interest in the Campus Creek Property. A joint venture for each project will be formed thereafter with each party funding their respective interest
- The company will receive on closing US$2.25 million from the sale of a 2% gross overriding royalties on the two lithium projects.
Grid will form a dedicated lithium subsidiary with the intent to list or sell the subsidiary in the future depending on market conditions and exploration results.
Grid Metals Corp. has a portfolio of exploration and development stage properties focused on battery metals which are located in the Provinces of Manitoba and Ontario, Canada. Grid’s lithium assets are the Mayville Lithium property which covers Donner Lake lithium pegmatites located on the north arm of the Bird River Greenstone Belt and in Ontario the Company has an option on the Campus Creek Lithium Property near Ignace Ontario.
Grid also has several other properties including the Makwa-Mayville Ni-Cu-PGM-Cobalt project in Manitoba which has a NI 43-101 compliant nickel copper PGM cobalt resource included in a 2014 PEA; the East Bull Lake Palladium Project near Sudbury Ontario and the Bannockburn Nickel Project south of Timmins Ontario.
For further information please visit: https://www.gridmetalscorp.com/
