Grounded Lithium Corp · TSXV:GRD
Grounded Lithium — Investor Presentation (January 2024)
34 slides from Grounded Lithium's investor presentation, January 2024
Slide 1: Corporate Presentation January 2024
Corporate Presentation January 2024 W W W G R O U N D E D L I T H I U M . C O M ` DEFINING OUR PATH TO COMMERCIAL CANADIAN LITHIUM PRODUCTION www.groundedlithium.com | TSX.V: GRD.V | OTCQB: GRDAF
Slide 2: Disclaimer
Disclaimer This presentation material contains forward-looking statements and forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. The opinions
Slide 3: Corporate Vision
Resource quality. Starts and ends with the rock. Corporate Vision: Torque in investment Build a Best-in-Class, Environmentally Responsible, - Top tier resource potential - Significant land base under control in Canadian Lithium Producer friendly jurisdiction (316 sections or ~82,000 hectares) W W W
Slide 4: Macro Economic Critical Mineral Environment
Macro Economic Critical Mineral Environment North America poised for significant growth Lithium global supply/demand forecasted to be in major deficit North America playing catch-up… W W W G R O U N D E D L I T H I U M . C O M Share of worldwide Share of industry worldwide industry Source: Benchmark
Slide 5: Strategic Partnership with Denison Mines
Strategic Partnership with Denison Mines Provides liquidity and funds KLP development over short to medium term (all amounts in CAD$000's) Earn-in Option Phase • Structured as an Earn-in Option with both cash payments to GLC Phase 1 Phase 2 Phase 3 and funding of KLP project expenditures Royalty Fin
Slide 6: Denison Investment Unlocks GRD Value
Denison Investment Unlocks GRD Value Preliminary Economic Assessment NPV8 AT - Phase 1 = CAD$1.35B1 Commercial Commercial Pilot Preparation Pilot Operation Feasibility Exploitation Drilling Development Operations Denison JV Interest 0% 30% 55% 75% 75% 75% Grounded JV Interest 100% 70% 45% 25% 25% 25
Slide 7: Strategic Partnership with Denison Mines: Potential Rerate
Strategic Partnership with Denison Mines Impact and What Does it Mean to GLC Shareholders – Potential Rerate • Provides for a fully funded pilot • Lack of capital for a funded pilot represented a major overhang on public company valuation W W W G R O U N D E D L I T H I U M . C O M • Dilution at the
Slide 8: Grounded PEA – Technical & Economic Vision
Grounded PEA – Technical & Economic Vision Robust Project Economics – 11,000 tonne/yr lithium hydroxide monohydrate (“LHM”) Phase 1 Total Capital = USD$335 Million W W W G R O U N D E D L I T H I U M . C O M NPV(AT) 8% USD$1.0 Billion IRR(AT) 48.5% Capital Intensity per installed tonne capacity/yr U
Slide 9: KLP - Generating Returns For Investors
KLP - Generating Returns For Investors Compelling Project Economics Source: Grounded Lithium filed PEA on August 9, 2023, PHASE 1 ONLY Only a 10 year forward look. PEA goes out to 2046 W W W G R O U N D E D L I T H I U M . C O M Kindersley Lithium Project - Phase 1, US$25,000/tonne realized sale pri
Slide 10: Funds Flow on Equity Investment
Funds Flow on Equity Investment Hard-pressed to find other risk adjusted opportunities Equity Financings Forecasted to Achieve Operations Total Equity Invested (high-end of range) W W W G R O U N D E D L I T H I U M . C O M Commercial Pre-pilot/Pilot Pre-Commercial Round Round Round (equity only) CA
Slide 11: Capitalization
Capitalization| TSX.V – GRD | OTCQB: GRDAF Clean balance sheet with capital structure conducive for growth and returns for all shareholders Capitalization (as at Jan 17'24) TSXV: GRD - Share Price $ 0.09 GLC Ownership 14% Outstanding Common Shares (shrs millions ) 76.6 W W W G R O U N D E D L I T H
Slide 12: Lithium from Brine Playbook
Lithium from Brine Playbook Fully Charged Focus on Commercial Operations GRD Advantage Team Robust Economics W W W G R O U N D E D L I T H I U M . C O M Applied expertise & history of success After-Tax IRR =49% Rate of After-Tax NPV8= US$1B Return Minimal Contaminants Jurisdiction and Access Reduced
Slide 13: GLC Project Area
GLC Project Area The Leduc Formation / AKA the Duperow in Saskatchewan Leduc formation: extensively dolomitized ancient carbonate complex that spans 100s km2 and is over 200 m thick Southern Alberta & Saskatchewan contain massive shallow W W W G R O U N D E D L I T H I U M . C O M water carbonate re
Slide 14: Robust Resource Potential
Robust Resource Potential Proven Deliverability & Low-Cost Development Compelling Geology • Thick porous reservoir with confirmed lithium con • 220 million barrels/square mile W W W G R O U N D E D L I T H I U M . C O M • 14,000 tonnes LCE/square mile • Proven high deliverability/well Low Drilling C
Slide 15: Increasing Economic and Geologic Confidence Phase 1
Strategic Partnership with Denison Mines Increasing Economic and Geologic Confidence Phase 1 Kindersley Lithium Project (“KLP”) – Phase 1 GLC • Other than a 10km Area of Mutual Interest, GLC can explore and develop other lithium from brine operations, pursue M&A, etc W W W G R O U N D E D L I T H I
Slide 16: Payout increases with Drill Depth and Lower Deliverability
Commercial Considerations Deliverability and Depth (Drill costs) Impact Economics Well Program Costs for 11,000 tonne/year LHM Project and Payout increases with Drill Depth and Lower Deliverability $4,000 5 Impact on Payout period $3,750 4.5 W W W G R O U N D E D L I T H I U M . C O M $3,500 Total W
Slide 17: KLP Production Forecast
KLP Production Forecast Multi-stage build-out minimizes risk on several fronts Future Phases Kindersley Lithium Project • Sufficient land holdings to support W W W G R O U N D E D L I T H I U M . C O M 44,000 multiple 11,000 tonne/yr phases LHM • Grounded continues to add to portfolio 33,000 where o
Slide 18: Tier 1 Operating Jurisdiction to Build Business
-Tier 1 Operating Jurisdiction to Build Business Saskatchewan Chose GLC, We Did Not Chose Saskatchewan! Resource Potential Lead GLC Efforts Saskatchewan ranked 3rd in the world for Easy access to infrastructure and services including: investment attractiveness in the Fraser Institute’s • High graded
Slide 19: ESG & Lithium from Brine
ESG & Lithium from Brine DLE delivers improved social and environmental license Environmentally Friendly Current Lithium Sources • Much lower environmental impact (less land disturbance, minimal water consumption and Large Environmental Footprint W W W G R O U N D E D L I T H I U M . C O M emissions
Slide 20: Direct Lithium Extraction - DLE
Direct Lithium Extraction - DLE Deploy capital to resource development, not R&D DLE: Key to Future of Clean Energy in Western Canada • Applies innovative process to Western Canada’s tremendous lithium resource potential while W W W G R O U N D E D L I T H I U M . C O M leveraging oil & gas expertise
Slide 21: Direct Lithium Extraction Technology
Direct Lithium Extraction Technology Potential Game Changer in Battery Supply Chain Industry DLE - Koch Technology Koch Technologies Solutions (Current Status) ➢ Sorption and Ion-exchange based technology (Li-ProTM) ➢ Grounded working with Koch to finalize pilot ➢ Would be first of its kind in Canad
Slide 22: Operational Milestones and Objectives
OPERATIONAL MILESTONES AND OBJECTIVES FINANCING PROJECT FUNDING DEBT & EQUITY POTENTIAL OFFTAKE GOVERNMENT PRE-FID DISCUSSIONS FUNDING FINANCING & AGREEMENT(S) LEGEND IC COMPLETED INMATIVES LC TBC (INFRASTRUCTURE 8 FACILITIES) HE GLC TBC (WELLS & PIPELINES) 1M PROJECT MILESTONES (AV POTENTIAL VALUAT
Slide 23: Operational Milestones and Objectives
OPERATIONAL MILESTONES AND OBJECTIVES FINANCING PROJECT FUNDING DEBT & EQUITY POTENTIAL OFFTAKE GOVERNMENT PRE-FID DISCUSSIONS FUNDING FINANCING & AGREEMENT(S) LEGEND IC COMPLETED INMATIVES IME GICTBC (INFRASTRUCTURE & FACILITIES) GC TBC (WELLS & PIPELINES) 1M PROJECT MILESTONES (AV POTENTIAL VALUAT
Slide 24: Operational Milestones and Objectives
OPERATIONAL MILESTONES Grounded "Lithium Corp AND OBJECTIVES FINANCING TIMING 2026 PROJECT FUNDING DEBT & EQUITY 2025 POTENTIAL OFFTAKE GOVERNMENT PRE-FID DISCUSSIONS FUNDING NM 204 FINANCING & AGREEMENT(S) PRE-FEASABILITY STUDY NEW DRILIS Fist PILOT 2023 LEGEND PRELIMINARY ECONOMIC ASSESSMENT (PEA)
Slide 25: Operational Milestones and Objectives
OPERATIONAL MILESTONES Grounded "Lithium Corp AND OBJECTIVES FINANCING TIMING 2026 PROJECT FUNDING DEBT & EQUITY NM 2025 FEASABILITY STUDY POTENTIAL OFFTAKE GOVERNMENT ADDITIONAL DRILLING PRE-FID DISCUSSIONS ae NM 204 FINANCING & AGREEMENT(S) hea’ WELL LICENSING PRE-FEASABILITY STUDY NEW DRILLS FIEL
Slide 26: D L I T H I U M . C O M
W W W G R O U N D E D L I T H I U M . C O M 11,000 26
Slide 27: Why Invest
Why Invest Robust Value Proposition to Investors • Strategic transaction with Denison de-risks early stages of the KLP but also GRD • Funded and operational field pilot is a critical next step to unlock value for all shareholders W W W G R O U N D E D L I T H I U M . C O M • Re-rate potential even m
Slide 28: Appendix
W W W G R O U N D E D L I T H I U M . C O M APPENDIX 28
Slide 29: PEA Support References
PEA Support References The economic analysis of the PEA is based on the following main assumptions: • realized sales price of USD $25,000 per tonne of LHM; • annual production of 11,000 tonnes per year of LHM; W W W G R O U N D E D L I T H I U M . C O M • commerciality of KTS’ Li-ProTM lithium extra
Slide 30: Leadership Team – We Build
Leadership Team – We Build Disciplined resource development professionals with history of economic success Over 35 years combined technical and managerial Over 28 years of combined experience in finance and Gregg Smith Greg Phaneuf W W W G R O U N D E D L I T H I U M . C O M experience leadership di
Slide 31: Board of Directors & Advisors
Board of Directors & Advisors Wisdom and expertise to guide management and steward shareholder interests Board Member Experience Chair Other Committees John Wright Chairman of GLC, Mr. Wright also serves as the Chairman of two resource Board, development companies in the oil and gas sector (Touchsto
Slide 32: DLE – Noteworthy Industry Progression/Advancement
DLE – Noteworthy Industry Progression/Advancement Grounded – Fast Follower at Low Valuation W W W G R O U N D E D L I T H I U M . C O M Standard Lithium Announces Positive Preliminary Feasibility Study Results for Its South West Arkansas Project “Our team has also been hard at work at our Demonstrat
Slide 33: Lithium from Brine – Low Cost & Sustainable
Lithium from Brine – Low Cost & Sustainable W W W G R O U N D E D L I T H I U M . C O M Lithium from brines dominate low end of the cost curve DEVELOPING SASKATCHEWAN'S UNTAPPED LITHIUM RESOURCES 33
Slide 34: Grounded PEA – Technical & Economic Vision
Grounded PEA – Technical & Economic Vision Robust Project Economics – Resilience to Lithium Hydroxide Price Net Present Value (AT@8%) from PEA (US$,000’s) Resilience and Torque to Lithium Price NPV US$1.6B & % IRR at $35000/tonne $1,600,000 $40,000 Pricing for Lithium Hydroxide (US$/tonne W W W G R
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