Grounded Lithium Executes Strategic Investment With Denison Mines Whereby Denison Has The Option To Earn Up To A 75% Working Interest In The Kindersley Lithium Project By Funding In Aggregate Up To $15.15M
Portfolio Pulse from Benzinga Newsdesk
Grounded Lithium Corp. (GLC) has entered into a strategic investment agreement with Denison Mines Corp (Denison), where Denison can earn up to a 75% interest in the Kindersley Lithium Project (KLP) by funding up to CAD$15.15M. The funds will advance the KLP, including a field pilot and other project expenditures. Denison will also become the KLP operator and has purchased a 5% gross overriding royalty on the KLP for CAD$800,000, which may reduce to 2% and be eliminated under certain conditions. The agreement includes three earn-in options, with Denison funding 100% of KLP expenditures during the earn-in period. The deal is subject to TSX Venture Exchange approval and GLC shareholder consent.
January 16, 2024 | 3:05 pm
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POSITIVE IMPACT
Denison Mines Corp. has the option to earn up to a 75% interest in the KLP by funding up to CAD$15.15M, becoming the operator, and has purchased a 5% royalty which may reduce to 2% and be eliminated under certain conditions.
The strategic investment and potential increase in working interest in the KLP project could be seen positively by investors as it expands Denison's portfolio into lithium, a critical mineral for clean energy. The funding commitment and operatorship indicate a significant stake in the project's success, which could lead to future revenue streams if the project is successful.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Grounded Lithium Corp. has secured a strategic investment from Denison Mines, with Denison funding up to CAD$15.15M for up to a 75% interest in the KLP and purchasing a 5% royalty on the KLP for CAD$800,000.
The agreement with Denison provides Grounded Lithium with significant funding to advance the KLP without corporate dilution, which is a strong positive for the company. The partnership with a reputable company like Denison could also enhance investor confidence in the project's prospects and GLC's future growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100