Frontier Lithium closes $2.01 Million in Financing
Frontier Lithium closes $2.01 Million in
Financing
SUDBURY, ON
,
Aug. 5, 2020
/CNW/ -
Frontier Lithium Inc.
(TSX.V: FL)
(the "Company" or
"Frontier")
announces the closing of a non-brokered private placement offering for a total of
10,077,000 units ("Units") of the Company priced at
$0.20
per Unit, for total gross proceeds of
$2,015,400
. Each Unit consists of one (1) Common Share of the Company and one-half (½) share
purchase warrant (the "Warrant"), for total of 5,038,500 warrants priced at
$0
.27 for a period of 24
months following the closing date of the issuance. The private placement was oversubscribed from
the initial offering by
$765,400
, issuing an additional 3,827,000 common shares of the Company.
In connection with the CDN
$2,015,400
Offering, the Company issued finder's fees of CDN
$84,624.00
(totaling 4.2% of the gross proceeds of the Offering) and 423,120 finder warrants. Each
finder warrant will be exercisable at a price of
$0.27
into one common share for a period of twenty-
four (24) months from the date of issuance.
A portion of the Private Placement constitutes a "related party transaction" within the meaning of
Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("MI
61-101") as some of the Units were issued to certain directors and officers of the Company. The
issuance of the Units to the insiders of the Company under the Private Placement are exempt from
the formal valuation and minority shareholder approval requirements under MI 61-101 pursuant to
subsections 5.5(b) and 5.7(1)(a), as the Company's common shares are not listed on a specified
market and the fair market value of these Units will not exceed 25% of the Company's market
capitalization.
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 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 is in late-stage exploration, early-stage development phase with the near-
term goal of building a Demonstration concentrator under an advanced exploration permit. The
company's PAK Lithium Project contains
North America's
highest-grade concentration of rare low-
iron, lithium bearing mineral spodumene and is
Ontario's
largest resource with significant upside
potential to increase. Frontier Lithium's current objective is to demonstrate the potential of the PAK
Lithium Deposit to produce up to 2,000 tonnes Lithium Carbonate Equivalent ("LCE") of premium
spodumene concentrates for glass producers and for feedstock to produce lithium chemicals.
Frontier maintains a tight share structure with management ownership exceeding 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 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.
The PAK deposit has a mineral reserve in proven and probable category 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% Fe
2
O
3
). The "2019 Discovery of the year award" winning Spark Deposit has a mineral
resource estimate of 3.2 MT averaging 1.59% Li
2
O in indicated and 12.2 MT averaging 1.36% Li
2
O
in inferred category, as per NI 43-101 Technical Report, "PAK prefeasibility study, Spark resource
estimation" by WSP Canada Inc. and Nordmin Engineering Ltd., updated on
March 23, 2020
.
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 10:43e 05-AUG-20