Frontier Closes C$23 Million Bought Deal Prospectus Offering
FRONTIER CLOSES C$23 MILLION BOUGHT
DEAL PROSPECTUS OFFERING
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
SUDBURY, ON
,
Nov. 10, 2022
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX:
LITOF) (the "Company") is pleased to announce that it has closed its previously announced bought
deal prospectus offering (the "Offering"). Pursuant to the Offering, the Company issued 10,465,000
units (the "Units") of the Company, including 1,365,000 Units issued in connection with the exercise in
full of the over-allotment option granted to the Underwriters (as defined below) in connection with the
Offering, at a price of
C$2.20
per Unit (the "Offering Price"), representing total gross proceeds of
C$23,023,000
.
The Offering was completed through a syndicate of underwriters co-led by RBC Capital Markets
and Goldman Sachs Canada Inc. (the "Joint Bookrunners"), and including BMO Nesbitt Burns Inc.,
Canaccord Genuity Corp., Cormark Securities Inc. and Stifel Nicolaus Canada Inc. (collectively with
the Joint Bookrunners, the "Underwriters"). The Underwriters received a cash commission equal to
5.5% of the gross proceeds of the Offering.
Each Unit consists of one common share of the Company (a "Common Share") and one-half of one
common share purchase warrant of the Company (each whole common share purchase warrant, a
"Warrant"). Each Warrant will entitle the holder thereof to purchase one common share of the
Company (a "Warrant Share") at a price of
C$2.75
for a period of 36 months following the closing of
the Offering.
The net proceeds of the Offering will be used by the Company to fund exploration and development
activities at the PAK Lithium Project, located in
Northwestern Ontario
, as well as general
administration and corporate purposes, as further described in the Prospectus.
The Units were offered by way of short form prospectus in all of the provinces of
Canada
(except
Quebec
) pursuant to National Instrument 44-101 –
Short Form Prospectus Distributions
(the
"Prospectus"). The Units were also offered in
the United States
on a private placement basis
pursuant to an exemption from the registration requirements of the United States Securities Act of
1933, as amended (the "U.S. Securities Act"), and such other jurisdictions as agreed between the
parties. The Offering remains subject to the final acceptance of the TSXV.
The Units have not been and will not be registered under the U.S. Securities Act or any state
securities laws and may not be offered or sold within
the United States
or to, or for the account or
benefit of, U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act)
unless registered under the U.S. Securities Act and applicable state securities laws or an exemption
from such registration is available. This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Units in
the United States
or to, or for the account or benefit
of, U.S. Persons.
About Frontier Lithium
Frontier Lithium is a preproduction business that is targeting to become a manufacturer of battery-
quality lithium materials to support electric vehicle and battery supply chains in
North America
.
Frontier is developing the PAK Lithium Project which contains one of
North America's
highest-grade,
large-tonnage hard-rock lithium resources in the form of a rare low-iron spodumene. The project
continues to have significant exploration upside with potential to increase the lithium resource. The
Company is a pure-play lithium development opportunity with the largest land position in a premium
lithium mineral district located in
Northern Ontario
.
About the PAK Lithium Project
The PAK Lithium Project contains one of
North America's
highest grade lithium resource. A 2021
preliminary economic assessment (National Instrument 43-101 technical report titled "NI 43-101
Technical Report, Pak Property, PAK, Red Lake Mining District,
Ontario, Canada
" by BBA E&C Inc.,
with an effective date of
April 5, 2021
) delivered a fully integrated lithium operation from the
resource to achieve downstream conversion plan for production of battery-quality lithium salts. The
Project encompasses close to 27,000 hectares at the south end of
Ontario's
Electric Avenue, the
largest land package hosting premium lithium-bearing pegmatites in
Ontario
. The Project covers 65
kilometres of the Electric Avenue's length and remains largely unexplored; however, since 2013, the
company has delineated two premium spodumene-bearing lithium deposits (PAK and Spark),
located 2.3 kilometres apart. Exploration is ongoing on the Project through two other spodumene-
bearing discoveries: the Bolt pegmatite (located between the PAK and Spark deposits), as well as
the Pennock pegmatite (25 kilometres northwest of PAK Deposit within the project claims).
Forward-looking statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release. This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of historical facts are forward-
looking statements. Examples of certain forward looking statements relate to the use of proceeds
of the Offering and the receipt of final acceptance from the TSXV. Although the Company believes
the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward looking statements include market
prices, exploitation and exploration successes, continued availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned that any such statements
are not guarantees of future performance and those actual results or developments may differ
materially from those projected in the forward-looking statements. For more information on the
Company, Investors should review the Company's registered filings available at
www.sedar.com
.
SOURCE
Frontier Lithium Inc.
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For further information:
Bora Ugurgel, Manager, Investor Relations, 2736 Belisle Drive Val Caron,
ON. P3N 1B3 CANADA, T. +001 705.897.7622, F. +001 705.897.7618
CO: Frontier Lithium Inc.
CNW 08:38e 10-NOV-22