Frontier Lithium Announces Oversubscribed Flow Through Private Placement
Frontier Lithium Announces Oversubscribed
Flow Through Private Placement
SUDBURY, ON
,
Oct. 30, 2020
/CNW/ -
Frontier Lithium Inc.
(TSX.V: FL)
(the "Company" or
"Frontier")
announces that it has received interest above the previously announced
$500,000
, and
accordingly intends to increase the amount to be raised under its non-brokered private placement
offering to
$1,045,000
; therefore the company now proposes to issue 2,985,714 units at a price of
$0.35
each subject to TSX Venture Exchange ("TSX-V") approval. All other terms of the offering
remain as set out in the Company's
October 22, 2020
news release.
Each FT unit will consist of one common share in the capital stock of Frontier, issued on a flow-
through (FT) basis, and one-half common share purchase warrant. Each full FT warrant shall entitle
the holder thereof to purchase one additional common share of Frontier Lithium at an exercise price
of
45 cents
for a 24-month period following the closing date of the offering.
Frontier Lithium reserves the opportunity to grant to eligible persons a finder's fee of a maximum 6
per cent of the gross proceeds of the offering and finder warrants of a maximum of 6 per cent of the
total number of units sold under the offering. Each finder warrant will be exercisable at an exercise
price of
45 cents
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 a day 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-V and applicable
securities regulatory authorities. Proceeds from the financing will be used to advance exploration of
Frontier's 100% owned PAK Lithium Project located in northwestern
Ontario
.
About Frontier Lithium Inc.
Frontier Lithium is a
Sudbury
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 has recently commenced a Preliminary Economic Assessment study 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, which is the largest land package hosting lithium bearing pegmatites in
Ontario
. The Project
covers 65km 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. Recently, Frontier confirmed the presence of
spodumene with the Pennock Lake pegmatite occurrence a further 30km along Frontier's PAK
Lithium Project. Frontier's premier Great Lakes location is advantaged by favorable geology, proven
metallurgy with access to intermodal hubs, infrastructure, power, and mining and downstream lithium
processing expertise.
The PAK deposit has a mineral reserve in the proven and probable categories of 5.77 MT averaging
2.06% Li
2
O.
The deposit hosts a rare technical/ceramic grade spodumene with low inherent iron (below 0.1%
Fe2O3). The Spark Deposit, winner of the "2019 Discovery of the year award" has a mineral
resource estimate of 3.2 MT averaging 1.59% Li
2
O (indicated) and 12.2 MT averaging 1.36% Li
2
O
(inferred), as per the NI 43-101 Technical Report, "PAK prefeasibility study, Spark resource
estimation" by WSP Canada Inc. and Nordmin Engineering Ltd., updated on
March 23, 2020
. The
Company recently initiated a Preliminary Economic Assessment study for a fully integrated project
producing lithium hydroxide from the PAK Lithium Project.
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 10:11e 30-OCT-20