January 26, 2024
Grounded Lithium Corp. (TSXV:GRD, BUY, C$0.35 target, Alina Islam and David A. Talbot) announced that it has received consent from over 50% of its shareholders for the previously announced agreement with Denison (TSX:DML, Not Rated), as per which Denison can acquire up to a 75% interest in Grounded’s flagship Kindersley Li brine project in Saskatchewan (read note). With the approvals received, the 5% gross overriding royalty sold to Denison has now been reduced to 2% and is expected to be eliminated 15 months after closing unless Denison elects not to exercise the option. The agreement de-risks the project by providing C$12M in funding for the construction and operation of a pilot plant. We believe Denison has the treasury to advance Kindersley through to production, which bodes well for shareholders even with limited upside. Read more
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Grounded Lithium Corp. – TSXV:GRD – 3
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