Frontier Lithium and Mitsubishi Corporation Complete Joint Venture Transaction
FRONTIER LITHIUM AND MITSUBISHI
CORPORATION COMPLETE JOINT VENTURE
TRANSACTION
SUDBURY, ON
,
April 25, 2024
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX:
LITOF) ("Frontier" or "the Company"), is pleased to announce the successful closing of Tranche 1 of
the joint venture partnership with Mitsubishi Corporation ("Mitsubishi") (Tokyo Stock Exchange:
8058:JP). This joint venture for the PAK Lithium Project ("Project") marks a significant milestone in
advancing the first fully integrated lithium mining and processing operation in
Ontario, Canada
.
Through the joint venture partnership, as initially announced on
March 4, 2024
, Mitsubishi has
acquired an initial 7.5% interest in the Project for CAD
$25 million
. This strategic investment
underscores the confidence in the size, quality, and strategic importance of the Project to the North
American EV supply chain.
Frontier plans to utilize the funding from Mitsubishi to progress the Project towards a vertically
integrated Definitive Feasibility Study (DFS), which is expected to be completed in 2025.
Trevor Walker
, President, and CEO of Frontier Lithium emphasized the significance of the milestone
achieved today as the company advances its mission to become a leading lithium supplier within the
North American EV battery materials supply chain. "Mitsubishi's investment underscores their trust in
Ontario's
jurisdiction, as well as the caliber and scale of the PAK Lithium Project" stated
Trevor
Walker
. "We warmly welcome Mitsubishi and are honored to have a strategic, and reliable partner
enabling us to focus on generating long-term value for shareholders, communities, and all
stakeholders."
Transaction Details
The joint venture is structured to facilitate the majority of equity funding for the planned mine and mill,
with Frontier being able to reduce its share of development costs for the whole project, while
maintaining at least 75% of future off-take optionality. This partnership aligns with the recent
Memorandum of Cooperation signed between the governments of
Canada
and
Japan
to encourage
value-added investments that will help establish sustainable and reliable battery supply chains
between our two countries.
Key points of the joint venture transaction:
Frontier has contributed all assets pertaining to the Project in exchange for a 92.5% stake in the
JV and has assumed the role of JV manager.
Following the completion of the DFS, Mitsubishi will have the option to increase its interest in the
JV up to a 25% interest at a valuation based upon, among other things, the net asset value of
the Project outlined in the DFS ("Tranche 2").
Mitsubishi will collaborate closely with Frontier in securing debt financing to ensure full funding
for the Project's production.
The completion of Tranche 2 investment is contingent upon certain preconditions, such as
obtaining material infrastructure permits and other customary approvals. Frontier expects these
conditions to be met in 2025.
About Mitsubishi Corporation
Mitsubishi Corporation is a global integrated business enterprise that develops and operates
businesses together with its global network of around 1,800 group companies. Mitsubishi has eight
Business Groups that operate across virtually every industry: Environmental Energy, Materials
Solution, Mineral Resources, Urban Development & Infrastructure, Mobility, Food Industry, Smart-
Life Creation and Power Solution. Through these eight Business Groups, Mitsubishi's current
activities have expanded far beyond its traditional trading operations to include project development,
production and manufacturing operations.
About Frontier Lithium
Frontier Lithium Inc. (TSX-V: FL) is an exploration and development mining company with
headquarters and assets in
Northern Ontario
, a Tier1 mining jurisdiction. The Company's PAK
Lithium Project represents a high-grade, large tonnage, pure lithium resource in a new, premium
lithium mineral district in northwestern
Ontario
. Strategically located in the Great Lakes region near
the United States
border, Frontier is developing the first fully integrated lithium mining and processing
operation in
Ontario
with an aim to become
Canada's
lithium champion and a significant supplier of
spodumene concentrates and battery-grade lithium chemicals to the growing electric vehicle and
energy storage markets across
North America
.
About the PAK Lithium Project
The PAK Lithium Project contains
North America's
highest-grade lithium resource and is the largest
in
Ontario
by size. The claims encompass more than 26,000 hectares and remains largely
unexplored; however, since 2013, the Company has delineated two premium spodumene-bearing
lithium deposits (PAK and Spark), located only 2.3 kilometres apart. Exploration is continuing 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 located 25 kilometres northwest of
PAK deposit within the project claims. A 2023 Pre-Feasibility Study titled ""National Instrument 43-
101 Technical Report PFS PAK Lithium Project"" authored by BBA E&C Inc., delivered a 24- year
project life, at a post-tax NPV(8%) of
US$1.74 billion
and internal rate of return of 24.1% as per the
press release disseminated on
May 31, 2023
, and filed on
www.sedarplus.ca
.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-statements." Such forward looking
statements involve known and unknown risks, uncertainties and other factors that may cause the
Company's actual results, performance or achievements, or developments to differ materially from
the anticipated results, performance or achievements expressed or implied by such forward-looking
statements. Although the Company believes, in light of the experience of its officers and directors,
current conditions and expected future developments and other factors that have been considered
appropriate that the expectations reflected in this forward-looking information are reasonable, undue
reliance should not be placed on them because the Company can give no assurance that they will
prove to be correct. When used in this press release, the words "estimate", "project", "belief",
"anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words
or such variations thereon or comparable terminology are intended to identify forward-looking
statements and information. The forward-looking statements and information in this press release
include information relating to the funding of Tranche 1, the formation and operations of the JV, the
timing of the satisfaction of the conditions to funding of Tranche 2, the prospectivity of the
Company's mineral properties, the mineralization and development of the Company's mineral
properties, the Company's exploration program and other mining projects and prospects thereof.
Such statements and information reflect the current view of the Company. Risks and uncertainties
that may cause actual results to differ materially from those contemplated in those forward-looking
statements and information. By their nature, forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause our actual results, performance or
achievements, or other future events, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. The forward-looking
information contained in this news release represents the expectations of the Company as of the
date of this news release and, accordingly, is subject to change after such date. Readers should not
place undue importance on forward-looking information and should not rely upon this information as
of any other date. The Company undertakes no obligation to update these forward-looking
statements in the event that management's beliefs, estimates or opinions, or other factors, should
change.
Readers are cautioned that any such forward-looking 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, please review the
Company's public filings available on SEDAR+ at www.sedarplus.ca
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 news release.
SOURCE
Frontier Lithium Inc.
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%SEDAR: 00008434E
For further information:
Company Contact Information: Bora Ugurgel, CPIR, Senior Manager,
Investor Relations & Communications, 2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA, T.
+001 705.897.7622, F. +001 705.897.7618
CO: Frontier Lithium Inc.
CNW 17:00e 25-APR-24