Grid Metals Corp. Signs Pre-Production MOU with Tanco Lithium Mine
TORONTO, October 17, 2022 - Grid Metals Corp. (the "Company")(TSXV:GRDM)(OTCQB:MSMGF) is pleased to announce that it has entered into a Memorandum of Understanding ("the Agreement") with Tantalum Mining Corporation of Canada Limited ("Tanco") for the forthcoming metallurgical tests on lithium spodumene ore from Grid's Donner Lake Lithium Property at the Tanco Mine which is located at Bernic Lake in southeastern Manitoba, which will serve as basis for further collaboration. The Tanco Mine is currently the only North American based producer of lithium spodumene concentrate. The Donner Lake Lithium Property is a 75%/25% joint venture between Grid Metals Corp. and Lithium Royalty Corp. ("LRC"). Under the Agreement Grid will supply samples from Donner Lake to Tanco for metallurgical testing at the Tanco Mine in order to test their amenability to produce a quality lithium spodumene product. Following successful initial testwork and obtaining an Advanced Exploration Permit Grid will submit a bulk sample to Tanco for testing. Upon the approval of both parties and obtaining the required regulatory consents and permits, Grid and Tanco will enter into a binding agreement to split the costs and profits of mining, processing and selling lithium spodumene concentrate to the global market based on prevailing spot prices for lithium spodumene concentrate.
Robin Dunbar President & CEO of Grid Metals Corp. and Frank Wang President of Tantalum Mining Corporation of Canada Limited issued a joint statement about the proposed arrangement, "The arrangement between Tanco and Grid to collaborate on the potential for toll milling Grid ore at the Tanco Mine is designed to add to the production resource base of Tanco and facilitate and enable a profitable mining venture between Tanco and Grid to be developed. With record lithium spodumene prices we see an opportunity to establish a profitable lithium joint mining operation and thereby grow the economy of southeastern Manitoba. We are of the opinion that southeast Manitoba will become an important hub for lithium production in the future to supply the North American market."
Grid acquired its Donner Lake Lithium Property from Tanco in 2016 return for granting a 2% Net Smelter Return Royalty and the right of Tanco to acquire products from the property at commercial terms whether ore or concentrate. The collaboration between Grid and Tanco will provide a basis to formalize a binding commercial structure and create a path to production for Grid while Grid continues its efforts to expand its resource base. Lithium Royalty Corp. also has a 2% Net Smelter Return Royalty on the Property.
About Tantalum Mining Corporation of Canada Limited
The Tantalum Mining Corporation of Canada Limited operates the Tanco Mine located at Bernic Lake in southeastern Manitoba. It was acquired by Sinomine Resource Group Co., Ltd. which is a listed company on the Shenzhen stock exchange and has a market capitalization of approximately 7 billion US dollars. The Tanco Mine has operated since 1968 with operations focused on mining the world famous Tanco pegmatite which is one of the most evolved lithium bearing pegmatites known globally. In previous years tantalum and cesium formate have been produced at the mine. Tanco currently employs approximately 150 workers most of whom are residents of southeastern Manitoba.
Above: aerial view of the Tanco Mine at Bernic Lake Manitoba Canada.
Above: Location of Donner Lake Lithium Property and Tanco Mine in southeastern Manitoba. The location of the Makwa Mayville Ni-Cu-PGM-Co deposits are also shown.
Dave Peck P. Geo has reviewed the contents of this release and is the Qualified Person for National Instrument 43-101.
About Grid Metals Corp.
Grid Metals Corp. is an exploration and development Company that has a diversified portfolio of projects focused on the nickel-copper-platinum group metals and lithium. Grid's projects are located in the provinces of Manitoba and Ontario Canada. The Donner Lake Property is located on the traditional territory of the Sagkeeng First Nation with whom Grid has an Exploration Agreement. Grid is commencing resource drilling at its Donner Lake in October 2022 with holes to be drilled both on the Main Dyke and Northwest Dyke with the objective being a NI 43-101 resource calculation to be subsequently completed. Several exploration drill holes on new targets will also be completed during the drill program. Grid also has a portfolio of nickel properties including the PEA stage Makwa Mayville Ni-Cu-PGM-Co Property.
To find out more about Grid Metals Corp., please visit www.gridmetalscorp.com.
On Behalf of the Board of Grid Metals Corp.
Robin Dunbar - President, CEO & Director Telephone: 416-955-4773 Email: rd@gridmetalscorp.com
David Black - Investor Relations Email: info@gridmetalscorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
We seek safe harbour. This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its properties, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Not for distribution to United States Newswire Services or for dissemination in the United States
SOURCE: Grid Metals Corp.