Business
Grid Metals Corp. Provides Update on CAD $6.3 Million Funding Agreement with Lithium Royalty Corp
TORONTO, ON / ACCESSWIRE / January 4, 2022 / GRID METALS CORP. (TSXV:GRDM)(OTCQB:MSMGF) ( "Gr...
About this update from Grid Metals Corp.
Grid Metals Corp. Provides Update on CAD $6.3 Million Funding Agreement with Lithium Royalty CorpTORONTO, ON / ACCESSWIRE / January 4, 2022 / GRID METALS CORP. (TSXV:GRDM)(OTCQB:MSMGF) ( "Grid " or the "Company") today announced it has received conditional approval from the TSX Venture Exchange ("TSXV") for the private placement financing, royalty sales and asset sales ( the "Transaction") entered into with Lithium Royalty Corp. ( "LRC") ( a leading pure play battery royalty and streaming company ). The Transaction was announced on November 17, 2021. Total funding to Grid in connection to the proposed Transaction is approximately CAD$6.3 million.Under the terms of the TSXV conditional approval, the private placement, royalty sales and asset sales which together comprise the Transaction, will be required to be closed concurrently after satisfactory review of all documentation by the TSXV. The targeted closing date for the Transaction of January 12, 2022 will require an extension of the normal period for closing a private placement and this extension has been granted by the TSXV. The final closing of the proposed Transaction remains subject to final documentation and due diligence by LRC.The TransactionTerms of the proposed private placement portion of the Transaction remain unchanged from those announced on November 17, 2021. The Company will issue 13,962,404 shares in the private placement at an issue price of $0.1182 per share for proceeds of $1,650.356. There are no warrants or finders fees issuable as part of the private placement.The Company will also receive aggregate proceeds of US$1.5 million from the sale of a 25% interest its two lithium projects to LRC. The Company will receive US$1,250,000 for the 25% interest in the Mayville Property and US$250,000 for the 25% interest in the Campus Creek Property.. A joint venture for each project will be formed thereafter with each party funding their respective interestThe Company will receive on closing US$ 2.25 million from the sale of a 2% gross overriding royalties on the two lithium projects.Grid will form a dedicated lithium subsidiary with the intent to list or sell the subsidiary in the future depending on market conditions and exploration results.ABOUT LITHIUM ROYALTY CORPLRC is a dedicated battery material investor partnering with battery material companies whose assets exhibit high grade, low cos...