Grid Metals Corp. (TSXV:GRDM) – Notable News

October 18, 2022

Grid Metals Corp. (TSXV:GRDM, BUY, C$0.40 target, Taylor Combaluzier) has signed an MOU with Tantalum Mining Corp. of Canada Ltd. (Tanco). Under the agreement, Grid will supply samples from its Donner Lake Li JV property in Manitoba for metallurgical testing at the Tanco mine to assess the production of a quality Li spodumene concentrate. Donner Lake is currently under a 75%/25% JV between Grid and Lithium Royalty Corp. (LRC), and both Tanco and LRC hold a 2% NSR royalty on the property. Additionally, the Tanco mine is currently the only North American producer of Li spodumene concentrate. Upon approval and receipt of regulatory permits, both companies are expected to enter into a binding agreement to split the costs and profits of mining, processing and selling Li spodumene concentrate. We view this announcement positively as Grid continues to advance the Donner Lake property. Recent drilling results from its Phase 1 program (read more) have also demonstrated consistent grades along 600m of strike drilled to date. With drill results returning up to 1.49% Li₂O from the Northwest dyke, we believe this compares favourably to other Li peer company resource grades, including Critical Elements (TSXV:CRE, Not Rated) at 0.85% Li₂O, Rock Tech Lithium (TSXV:RCK, Not Rated) at 1.1% Li₂O and Foremost Lithium (CSE:FAT, Not Rated) at 0.9% Li₂O. Read more

Company Specific Disclosure Details

Grid Metals Corp. – TSXV:GRDM – 3,4,6

1. The analyst has visited the head/principal office of the issuer or has viewed its material operations.
2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.   
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration. 
5. An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly.
6. Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities.
7. A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer.
8. Red Cloud Securities Inc. is a market maker in the equity of the issuer.
9. There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.