Frontier Lithium announces $2,000,000 Flow- Through Financing
Frontier Lithium announces $2,000,000 Flow-
Through Financing
SUDBURY, ON
,
March 25, 2021
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (OTCQX: LITOF) (FSE:
HL2) ("Frontier" or "the Company") is pleased to announce a non-brokered private placement for
gross proceeds of
$2,000,000
(the "
Offering
") for a total of 1,538,462 flow through share units (the
"FT Units") at a price of
$1.30
per FT unit.
Each FT Unit will consist of one common share in the capital stock of Frontier ("
Common Share
")
issued on a flow-through basis and one-half (½) Common Share purchase warrant ("
FT Warrant
").
Each full FT Warrant shall entitle the holder thereof to purchase one additional Common Share of
Frontier Lithium at an exercise price of $1.50 for a 24-month period following the closing date of the
Offering. All warrants issued at this financing are subject to an accelerated expiry of warrants at the
sole discretion by the Company within set terms.
Frontier Lithium reserves the opportunity to grant to eligible persons a finder's fee of a maximum 6%
of the gross proceeds of the Offering and finder warrants of a maximum of 6% of the total number
of Units sold under the Offering. Each finder warrant will be exercisable at an exercise price of
$1.50 CDN
into one common share for a period of 24 months from the date of issuance.
All of the Shares and Warrants issued pursuant to the private placement are subject to a minimum 4-
month and one day statutory hold period. The Offering is subject to certain conditions including, but
not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture
Exchange ("
TSX-V
") and applicable securities regulatory authorities. Proceeds from the financing will
be used to advance exploration and the pre-feasibility study of Frontier's 100% owned PAK Lithium
Project located in northwestern
Ontario
.
About Frontier Lithium
Frontier Lithium (TSX.V: FL) (OTCQB: LITOF) (FSE: HL2) is an emerging pure play lithium company
with the largest land position in the Electric Avenue, an emerging premium lithium mineral district
located in the Great Lakes region of northern
Ontario
. The company maintains 100% ownership in
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 has significant upside
exploration potential. Frontier is a pre-production business that is targeting the manufacturing of
battery quality lithium hydroxide in the Great Lakes Region to support electric vehicle and battery
supply chains in
North America
. Frontier maintains a tight share structure with management
ownership approximately 30% of the Company.
About the PAK Lithium Project
The PAK Lithium Project encompasses 26,774 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 km of the Avenue length and remains largely unexplored; however, since 2013 the
company has delineated two premium spodumene bearing lithium deposits (Pak and Spark) located
2.3 km from each other. A 2021 Preliminary Economic Assessment (2021 Preliminary Economic
Assessment, Fully Integrated PAK Lithium Project" by BBA Engineering Ltd. report to be released
by
April 5, 2021
) resulted in a post-tax NPV8% of USD
$974M
with a 21% IRR. Considerable
exploration upside is supported on the PAK Lithium Project through two other spodumene bearing
discoveries; Bolt pegmatite located between PAK and Spark deposits, as well as Pennock
pegmatite, a further 30 km northwest of PAK 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, that address
future production, reserve potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements. 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
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 12:51e 25-MAR-21