Canadian firm Denison Mines is strategically expanding its portfolio by venturing into a lithium project, a move characterised by CEO David Cates as a strategic addition that complements the company’s core uranium business.
Denison will earn into Grounded Lithium’s Kindersley Lithium Project (KLP), in Saskatchewan, by funding up to C$15.15-million, comprising cash payments of up to C$3.15-million and funding project expenditures of up to C$12-million through a structured earn-in option.
“Lithium is a complementary mineral to Denison's core uranium business, with both identified as critical minerals needed to support the clean energy transition,” said Cates on Wednesday.
He added that brine extraction also had many similarities to the in-situ recovery mining method that the company had successfully validated for use at its flagship Wheeler River uranium project in northern Saskatchewan.
“Combining our deep local technical capabilities with the Grounded team's experience on KLP has the potential to create an incredible environment to incubate the KLP to emerge as a premier lithium project in a top mining jurisdiction,” said Cates.
The agreement between Denison and Grounded would provide sufficient funding for a field pilot for KLP. Beyond the pilot, Denison may also provide further capital to fund other activities to drive the overall KLP value.
Denison will become the named operator of the KLP during the earn-in period, however, to ensure continuity of site activities, the parties will enter into a two-year site management contract whereby a fee will be paid to the company to effectively manage the day-to-day site activities of the KLP.