Grid Metals signs pre-production MOU with Tanco Lithium Mine

Grid Metals Corp. has entered into a Memorandum of Understanding (MOU) with Tantalum Mining Corporation of Canada Ltd. for the forthcoming metallurgical tests on lithium spodumene ore from Grid’s Donner Lake Lithium Property at the Tanco Mine.

The mine, which is located at Bernic Lake in southeastern Manitoba (aerial view above), 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 percent joint venture between Grid Metals Corp and Lithium Royalty Corp.

Under the agreement, Grid Metals will supply samples from Donner Lake to Tanco for metallurgical testing at the Tanco Mine to test their amenability to produce a quality lithium spodumene product.

Following successful initial test work 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.

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.