Grounded Lithium Unveils Major CAD$4.5 Million Project Budget

Grounded Lithium Corp. Budget Announcement for Kindersley Project

Grounded Lithium Corp. (TSXV: GRD, OTCQB: GRDAF) recently unveiled an ambitious budget of CAD$4.5 million dedicated to the development of the Kindersley Lithium Project (KLP). This substantial funding will be fully provided by their partnership with Denison Mines Corp (NYSE American: DNN). Both companies are focused on advancing the KLP and initiating various technical developments to position it for future success.

Key Components of the Budget

The announced budget is set to support critical activities associated with the next phases of the KLP, including rigorous technical de-risking processes expected to lead to the completion of a pre-feasibility study (PFS). This study will assess the viability of producing commercial-grade lithium from the project.

Technical Strategy Overview

The funding allocated for the project will cover a diverse range of initiatives:

• Development of an NI-43-101 compliant pre-feasibility report.
• Extensive drilling and resource delineation to explore multiple reservoir layers.
• Additional brine production aimed at thorough testing of pre-filtering and extraction technologies.
• Formulation of a comprehensive depletion and recovery model to enhance the economic assessments of the project.

Advancements and Future Plans

Grounded Lithium is actively engaging with leading engineering firms through a request for proposal (RFP) process to develop the independent PFS. This study builds upon a previous preliminary economic assessment completed in 2023, which indicated a highly favorable NPV after taxes. The company aims to perform extensive metallurgical tests comparing various extraction technologies, a crucial step before potentially launching a field pilot test.

Comments from Leadership

Gregg Smith, President and CEO of Grounded Lithium, expressed enthusiasm regarding the partnership with Denison. He highlighted the significant advantages of the project, including the accessibility of high-quality resources. He emphasized the collaborative initiatives that have been created to provide value to shareholders as they advance towards a meticulously considered and rigorous PFS.

Understanding the Earn-In Agreement

The agreement between Grounded Lithium and Denison Mines includes terms where Denison will fund the project’s expenditures in exchange for a working interest in the KLP. By investing CAD$2.2 million in project expenditures, Denison will acquire a 30% interest in KLP and continues striving for further phases to enhance their stake.

Financial Impact and Contributions

As the project progresses, Denison's financial contributions bolstered the project's liquidity and operational flexibility. With escalating cash infusions anticipated, this partnership is set to solidify Grounded Lithium’s financial base while facilitating ongoing geological and engineering evaluations essential for driving the project to completion.

About Grounded Lithium Corp.

Grounded Lithium Corp. is a prominent lithium brine exploration and development entity, controlling significant lithium resources in Canada. Grounded Lithium is committed to responsible mining practices that support the global transition to renewable energy. The company currently holds an expansive land portfolio promising around 1.0 million metric tonnes of lithium carbonate equivalent resource.

Frequently Asked Questions

What is the purpose of the CAD$4.5 million budget?

The budget is allocated for advancing various developmental aspects of the Kindersley Lithium Project, including technical studies.

How will the funding affect the Kindersley Lithium Project?

This funding will support critical assessments and technical developments necessary to optimize lithium production feasibility.

What is Denison’s role in the project?

Denison Mines is the primary funding partner that provides financial support under the agreement to acquire a working interest in the project.

What are the future steps for Grounded Lithium?

Grounded Lithium plans to complete a pre-feasibility study and further explore innovative extraction technologies through research and testing.

What resources does Grounded Lithium currently own?

Grounded Lithium holds approximately 1.0 million metric tonnes of Measured & Indicated lithium carbonate equivalent, enhancing its potential for development.

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