Grid Metals Corp. (TSXV:GRDM) has entered into a Memorandum of Understanding (MoU) with Tantalum Mining Corporation of Canada Limited.
The agreement covers the forthcoming metallurgical tests on lithium spodumene ore from Grid’s Donner Lake Lithium Property at the Tanco Mine which is located at Bernic Lake in southeastern Manitoba, which will serve as basis for further collaboration.
The Tanco Mine is currently the only North American based producer of lithium spodumene concentrate. The Donner Lake Lithium Property is a 75%/25% joint venture between Grid Metals Corp and Lithium Royalty Corp. (LRC).
Under the Agreement Grid will supply samples from Donner Lake to Tanco for metallurgical testing at the Tanco Mine in order to test their amenability to produce a quality lithium spodumene product.
Following successful initial testwork and obtaining an Advanced Exploration Permit Grid will submit a bulk sample to Tanco for testing. Upon the approval of both parties and obtaining the required regulatory consents and permits, Grid and Tanco will enter into a binding agreement to split the costs and profits of mining, processing and selling lithium spodumene concentrate to the global market based on prevailing spot prices for lithium spodumene concentrate.
“The arrangement between Tanco and Grid to collaborate on the potential for toll milling Grid ore at the Tanco Mine is designed to add to the production resource base of Tanco and facilitate and enable a profitable mining venture between Tanco and Grid to be developed,” President and CEO, Robin Dunbar, said.
“With record lithium spodumene prices we see an opportunity to establish a profitable lithium joint mining operation and thereby grow the economy of south-eastern Manitoba. We are of the opinion that southeast Manitoba will become an important hub for lithium production in the future to supply the North American market.”
Grid acquired its Donner Lake Lithium Property from Tanco in 2016 return for granting a 2% Net Smelter Return Royalty and the right of Tanco to acquire products from the property at commercial terms whether ore or concentrate.
The collaboration between Grid and Tanco will provide a basis to formalize a binding commercial structure and create a path to production for Grid while Grid continues its efforts to expand its resource base. Lithium Royalty Corp. also has a 2% Net Smelter Return Royalty on the Property.
About Tantalum Mining Corporation
The Tantalum Mining Corporation of Canada Limited operates the Tanco Mine located at Bernic Lake in south-eastern Manitoba. It was acquired by Sinomine Resource Group Co., Ltd. which is a listed company on the Shenzhen stock exchange and has a market capitalization of approximately US$7 billion.
The Tanco Mine has operated since 1968 with operations focused on mining the world famous Tanco pegmatite which is one of the most evolved lithium bearing pegmatites known globally. In previous years tantalum and cesium formate have been produced at the mine. Tanco currently employs approximately 150 workers most of whom are residents of south-eastern Manitoba.
For further information please visit: https://gridmetalscorp.com
