Grid Battery Metals Inc. V.CELL

Capitalizing on the North American EV Metal Boom

[sdhaka]

Hi everyone,

I’ve been keeping an eye on Grid Metals Corp. (TSXV: GRDM / OTCQB: MSMGF) and thought I’d share some key updates and insights as we resume coverage on this promising company. I’d love to hear your thoughts and questions!

Highlights:

• We’re resuming coverage on Grid Metals, which is advancing two lithium projects (Donner and Falcon West) and an advanced-stage MM nickel-copper-PGM project in southeastern Manitoba. Lithium, nickel, and copper are essential for EV batteries. Notably, Manitoba was ranked among the top three mining jurisdictions in Canada in 2023 by the Fraser Institute’s Survey of Mining Companies.
• The Donner project hosts a high-grade hard-rock (pegmatite) lithium resource (6.8 Mt at 1.39% Li2O). A significant advantage is its proximity to two processing facilities within trucking distance, enabling Grid to expedite production with lower CAPEX.
• Donner can produce 75 Ktpa of spodumene concentrates for over 10 years, with milling costs of C$316/t (excluding mining and transportation) compared to the current spodumene spot price of US$1,150/t. Initial CAPEX is estimated at $50M for mill reconfiguration, significantly lower than projects requiring their own processing facilities costing hundreds of millions. Management expects to receive a mining permit next year.
• The MM project hosts two open-pittable nickel-copper-PGM deposits, with indicated resources of 263 Mlbs nickel, 317 Mlbs copper, and 450+ Koz of precious metals. A drill program targeting prospective copper-rich targets is planned for this fall.
• We have a positive outlook on juniors focused on EV metals, as battery/EV manufacturers and miners are actively seeking stable, long-term supply sources. The lithium sector has seen considerable M&A activity over the past year. In the nickel sector, Sumitomo Metal Mining (TSE: 5713) acquired a 10% interest in FPX Nickel (TSXV: FPX) earlier this year.
• Upcoming catalysts include drilling at MM, permitting, and overall positive sentiment towards juniors focused on EV metals. Government initiatives across North America to secure reliable domestic supplies of critical minerals like lithium, copper, and nickel align perfectly with Grid’s development strategy.

Discussion Points:

1. What are your thoughts on the Donner project’s proximity to processing facilities? How significant is this advantage for Grid?
2. How do you view the potential of the MM project, particularly with the upcoming drill program targeting copper-rich areas?
3. With the lithium sector’s recent M&A activity and Sumitomo’s investment in FPX Nickel, do you think Grid is poised for similar strategic partnerships or investments?
4. How do you feel about the government initiatives aimed at securing domestic supplies of EV metals? Will this boost Grid’s prospects in the near term?

Looking forward to your insights and any additional information you might have on Grid Metals!

 

Link: https://www.researchfrc.com/content/reports/post/114/leveraging-north-american-push-for-domestic-ev-metal-production

[WobblyChart]

Wrong board. This is Grid BATTERY Metals (TSXV: CELL)