Grid Metals Corp. (GRDM.V) today announced that they entered into a Memorandum of Understanding (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 located at Bernic Lake in southeastern Manitoba.
Currently, Tanco Mine is the only North American based producer of lithium spodumene concentrate. The Donner Lake Lithium Project is a 75%/25% joint venture between Grid Metals and Lithium Royalty Corp.
What exactly is lithium spodumene concentrate? Spodumene is an important lithium mineral that is used in the production of ceramics, enamel and glass. It is a high-purity lithium ore with approximately 6% lithium content being produced as raw material for production in lithium-ion batteries.
Under this signed 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. After successful initial test work and obtaining an Advanced Exploration Permit, Grid metals will submit a bulk sample to Tanco for testing.
Upon approval between both parties after obtaining consents and permits, Grid Metals 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 and CEO of Grid Metals and Frank Wang, President of Tantulum Mining Corporation of Canada issued a joint statement:
“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.”
