Grid Metals Announces Non-Brokered Private Placement to Advance Donner Lake Lithium Project

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TORONTO, ON / ACCESSWIRE / November 29, 2023 / Grid Metals Corp. (TSXV:GRDM)(OTCQB:MSMGF) ("Grid" or the "Company") is pleased to announce a non-brokered private placement (the "Offering") to raise gross proceeds of up to C$ 5,400,000. The proceeds of the financing will be used for resource drilling at the Companys' Donner Lake Lithium Project and for exploration at Donner Lake and the Falcon West Lithium Property. Approximately twenty million shares of the financing will be purchased by two current institutional shareholders of the Company. ( Waratah Capital Advisors and AMCI Group ) The financing is expected to close on or about December 21, 2023.

The financing will consist of a total of:

• up to 30 million special flow-through common shares of the Company to be sold by way of a charitable flow-through offering (the "Special Flow-Through Shares") at a price of C$0.18 for gross proceeds of up to C$5,400,000.

Robin Dunbar, CEO of Grid Metals, commented, "This financing will enable both the planned resource drilling at Donner Lake and exploration drilling on exciting new targets we have developed at Donner Lake and Falcon West. We view the recent announcements of a maiden NI 43-101 resource ( 6.8 Mt @ 1.39% Li2O - see July 18, 2023 press release) and our True North Mill lease agreement as important milestones in our ongoing push toward production at Donner Lake - and on a condensed timeline compared to peer projects in other parts of Canada. This financing will allow us to continue to advance the project on an uninterrupted timeline. Grid remains focused on becoming one of the next producing lithium mines in North America in an area with excellent mineral potential."

Financing Terms

Each Special Flow-Through Share will be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada).

The proceeds from the issuance of the Special Flow-Through Shares will be used for exploration of the Company's property portfolio in Manitoba and will be used to incur "Canadian exploration expenses" ("Qualifying Expenditures") as defined in subsection 66.1(6) of the Income Tax Act. The Special Flow-Through Shares will be eligible for the 30% Manitoba Mineral Exploration Tax Credit and will also qualify for the federal 30% Critical Mineral Exploration Tax Credit announced in the federal budget on April 7, 2022. All proceeds will be renounced in favour of the subscribers with an effective date not later than December 31, 2023, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of Special Flow-Through Shares.