Frontier Lithium Announces $3 Million Financing
Frontier Lithium Announces $3 Million
Financing
SUDBURY, ON
,
Feb. 24, 2021
/CNW/ -
Frontier Lithium Inc.
(TSXV: FL) (OTCQB: LITOF)
(FSE: HL2)
("Frontier" or "the Company")
has proposed a non-brokered private placement
offering for a total of 3,000,000 units ("Units") of the Company priced at
$1.00
per Unit, for total
gross proceeds of
$3,000,000
.
Each Unit shall consist of one (1) Common Share of the Company and one-half (1/2) share purchase
warrant (the "Warrant"). Each full Warrant shall entitle the holder thereof to purchase one additional
common share of Frontier Lithium at an exercise price of
$1.25
for a 24-month period from the
closing (the "Offering").
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
.25 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 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
Frontier's 100% owned PAK Lithium Project located in northwestern
Ontario
.
About Frontier Lithium
Frontier Lithium (
TSX.V: FL
) (
OTCQB: LITOF
) (
FSE: HL2
) is a Sudbury Ontario based, publicly
listed, junior mining company with the largest land position in an emerging premium lithium mineral
district located in the Great Lakes region of northern Ontario . The company maintains 100%
interest 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 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 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 located 2.3 km from each other at the
southwestern end of the project. The recent Preliminary Economic Assessment initial results
announced an post-tax NPV(8%) of
USD 974M
with a 21% IRR as per the initial results supporting
an upcoming NI 43-101 Technical Report, "2020 Preliminary Economic Assessment, Fully Integrated
PAK Lithium Project" by BBA Engineering Ltd.
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 what are available at
https://www.sedar.com
SOURCE
Frontier Lithium Inc.
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%SEDAR: 00008434E
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 18:26e 24-FEB-21