Grid Metals Corp. [GRDM-TSXV, MSMGF-OTCQB] said Monday it has raised $8.52 million from a private placement financing with proceeds earmarked for exploration at its property portfolio in Manitoba and Ontario.
The company’s current focus is on the preliminary economic assessment (PEA)-stage Makwa Mayville nickel-copper-platinum-group-metal-cobalt project in Manitoba and the Donner Lake and Campus Creek lithium properties in Manitoba and Ontario.
On Monday, Grid Metals said it had closed a private placement consisting of 56 million shares.
The first $4.2 million tranche consisted of 20 million charitable flow-through common shares (priced at 21 cents each), plus 6.0 million ordinary shares (priced at 12 cents).
The second tranche of the financing consisted of 36 million common shares priced at 12 cents each. All shares issued under the offering are subject to a voluntary one-year-hold period.
The offering included an additional investment from Lithium Royalty Corp., a leading pure play battery royalty and streaming company, and new cornerstone investments by AMCI Group, a globally diversified mining and investment group, Primero Group of Perth Australia, and Waratah Electrification and Decarbonization Fund.
Grid Metals shares eased 3.6% or $0.005 to 13.4 cents. The shares are currently trading in a 52-week range of 23 cents and $0.085.
Grid recently encountered new high-grade lithium mineralization at its Donner Lake property in southeastern Manitoba, where the company is working to outline a NI-43-101-compliant resource. “Together with the Main Dyke, we now have two clear targets for our initial near surface resource delineation drilling,’’ the company has said.
The announcement coincided with the release of three additional holes from a phase one drill program, which targeted the Northwest Dyke, the second drill defined LCT type pegmatite with significant strike length on the Donner Lake property.
Drill intersections from the Northwest Dyke area include 10.3-metres of average 1.0% Li20 in GDL22-04, including a higher-grade section of 5.1 metres averaging 1.8% Li20 from 234.1 metres.
Similar lithium grades were encountered in drill holes that targeted the Main Dyke in 2018. The Main Dyke is located 1.5 kilometres to the east of the Northwest Dyke.
Anomalous cesium and tantalum values were present in three holes, including maximum values of 201 ppm Ta205 and 341 ppm Cs20 over 0.6 metres from the Northwest Dyke in GDL22-08.
The company has since announced results from the final three holes from the February-April, 2022 Northwest Dyke drilling program, with highlights including 7.5 metres averaging 1.17% Li20 (from 239.9 metres), including 2.1 metres averaging 1.92% Li20.
The Donner Lake property is located in the Winnipeg River pegmatite field, which hosts the world-class Tanco pegmatite.
The property is held 75% by Grid Metals and 25% by Lithium Royalty Corp (LRC). LRC has an overriding 2% royalty on the property, which Grid acquired in 2016 from Tantalum Mining Corp. of Canada Ltd. (Tanco). Tanco has the first right to acquire products produced from the property at commercial terms and holds a 2% royalty on certain claims.