Grid Metals Corp. (TSXV: GRDM | OTCQB: MSMGF) has signed a cesium supply agreement with the Tantalum Mining Corporation of Canada Limited (Tanco). The agreement provides funding for Grid to drill for this rare critical element at its Donner Property. If sufficient resources are delineated by drilling, the agreement provides access for 10,000t of cesium material to be processed at the Tanco Cesium Plant which is the only processing plant in the western world of its kind.
The drill target at Donner is the high-grade dyke which is a highly fractionated pegmatite dyke with documented high grade cesium values in the mineral pollucite. The HG dyke is located approximately 35km from the Tanco Cesium plant at Bernic Lake.
There are several key terms involved in the Grid Metals / Tanco Agreement including:
- An initial prepayment advance of C$300,000 will be provided by Tanco to Grid for drilling at Donner
- If drilling is deemed successful (by the parties), a follow up prepayment advance of C$900,000 will be provided by Tanco to Grid for project development activities
- In exchange, Tanco will have the right to purchase 10,000 tonnes of cesium-bearing material from Grid at a predetermined price
- Pricing for cesium material grading at least 5% Cs2O will be US$1,500/t (set price of US$300/t per 1% Cs2O) with deductions applied for transport
- The prepayment advances are repayable from the proceeds of future cesium or lithium sales to Tanco. Benefits of Agreement to Grid Shareholders
Robin Dunbar, Grid’s CEO & president, stated, “Consistent with our focus on our Bird River property portfolio and partnering with industry leaders, we are excited to announce this agreement with Tanco, the world’s leading producer of cesium products. This agreement provides the foundation to kickstart cesium exploration with the objective of near-term cash flow generation through toll milling. Our proximity to the only cesium operation in the western world is a unique feature of the Tanco collaboration. We note that we have a second cesium property (Falcon West) where we have obtained significant cesium results in drilling including 3.3m at 10.3% Cs2O and 3.2 m at 4.6% Cs2O.”
To read more about this, please visit www.gridmetalscorp.com
To read more news like this, please visit www.theassay.com/news
