Frontier Lithium Closes $2.3 Million in Private Placement and closes 2.5% NSR Purchase
Frontier Lithium Closes $2.3 Million in Private
Placement and closes 2.5% NSR Purchase
SUDBURY, ON
,
April 21, 2021
/CNW/ - Frontier Lithium Inc. (TSX.V: FL) (OTCQX: LITOF) (FSE:
HL2) ("Frontier" or "the Company") announces the closing of a non-brokered flow-through private
placement. Due to oversubscribed demand, the flow through financing will increase from 1,538,462
units ("Units") (see news release dated
March 25, 2021
) to 1,822,708 Units at a price of
$1.30
per
Unit for gross proceeds of up to
$2,369,520
(the "Offering") subject to TSX Venture Exchange
("TSX-V") approval.
"We were able to exceed our targeted raise in the last two rounds of financings and I wanted to
express my thanks to those investors who participated and provided a strong vote of confidence of
the PAK Lithium Project and our growing team." commented
Trevor Walker
, President and CEO of
Frontier. "The funds will continue in-fill and exploration drilling underway at the Spark Deposit and
support ongoing lithium chemicals piloting and process selection required for delivery of an advancing
pre-feasibility study. Our recent decision to acquire the Net Smelter Royalty on the project
demonstrates confidence and our commitment to all project stakeholders to transform Frontier from
a junior exploration company expanding
Ontario's
largest and
North America's
highest grade
resource to a highly coveted fully-integrated lithium chemical producer strategically located in the
Great Lakes region of
North America
. We are excited about the opportunities that lie ahead".
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
$1.50
for a 24-month period from the
closing (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.
In connection with the Offering, the Company issued finder's fees of
$121,201
and 93,232 finder
warrants. Each finder warrant will be exercisable at a price of
$1.50
into one common share for a
period of twenty-four (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 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
.
Other Matters
The Company announces that the Preliminary Economic Assessment for Fully Integrated Lithium
production is available on its website and on SEDAR. This report titled "PAK Property" can be found
here
.
The Company also announces that further to its press release dated
April 9, 2021
, the Company has
closed the acquisition to acquire the 2.5% Net Smelter Royalty that was outstanding on the
Company's Pakeagama Lake Pegmatite Project for consideration of
$4,000,000
in cash and
1,000,000 common shares of the Company at a price of
$1.00
per share (the "Acquisition").
The Acquisition has been approved by the TSX Venture Exchange (the "Exchange") and the common
shares issued herein will be subject to the Exchange hold periods and applicable securities laws.
About Frontier Lithium
Frontier Lithium (TSX.V: FL) (OTCQX: 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 25% 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 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 of a fully-integrated lithium
operation utilizing spodumene concentrate generated from the PAK Lithium Project resource to
achieve downstream conversion for production of battery-quality lithium chemicals (NI 43-101
Technical report titled "PAK Property" by BBA Engineering Ltd. report issued on
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.
View original content:
http://www.newswire.ca/en/releases/archive/April2021/21/c2004.html
%SEDAR: 00008434E
For further information:
Company Contact 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 14:55e 21-APR-21