Grounded Lithium Announces June Oil Sales and Secures Loans to Fund Oil & Gas Facility Improvements
Grounded secures a C$106,000 loan to fund oil and gas facility upgrades, aiming to boost netbacks at its operations.
Grounded Lithium Corp. (GRD) reported June oil sales averaging 123 barrels per day, a figure consistent with prior monthly reports. The company secured a C$106,000 unsecured loan at 12% interest to fund C$263,000 in oil and gas facility improvements. These upgrades are targeted for completion in early August 2026 to improve operating efficiencies and accelerate payout timelines.
The working interest structure consists of Analogy Capital holding 40%, Grounded Lithium holding 30%, and an unrelated third party holding 30%. Processing fee income from the upgraded facility will be allocated first to debt repayments. Management reiterates the investment thesis of low-decline production profiles and improving netbacks driven by crude oil fundamentals.
Grounded Lithium Corp. (GRD) released a routine operational update that aligns with its previously disclosed oil and gas diversification strategy announced in January 2026. The company secured a C$106k loan, a figure financially immaterial to its overall balance sheet, which confirms execution on its facility optimization plan.
Production stability ranging from approximately 114 to 123 barrels per day supports the company’s low-decline narrative, though it does not represent a step-change in cash flow generation. The primary value driver for Grounded Lithium Corp. remains the Kindersley Lithium Project (KLP) and the Denison Mines earn-in agreement; this oil and gas update serves as a secondary, supportive cash flow stream. There is no material deviation from prior expectations, as the market likely priced in these facility upgrades and loan requirements when the initial oil and gas acquisition was announced.
Grounded Lithium Corp. (GRD) is a resource exploration company focused on the Kindersley Lithium Project (KLP) in Saskatchewan, Canada. The project targets lithium via Direct Lithium Extraction (DLE) from brine in the Leduc/Duperow formations. The company reports a resource base of approximately 1.0 million tonnes of Measured and Indicated lithium carbonate equivalent (LCE) and approximately 3.2 million tonnes of Inferred LCE.
A preliminary economic assessment (PEA) completed in November 2023 indicates that Phase 1 of the project yields an after-tax net present value (NPV8) of US$1.0 billion and an internal rate of return (IRR) of 48.5%. To support project development, Grounded Lithium has entered into a strategic partnership with Denison Mines Corp. for project funding and technical execution under an earn-in structure. Additionally, the company has recently diversified into oil and gas to generate near-term cash flow.