Frontier Lithium Closes $3.35 Million Convertible Loan and Completes Land Acquisition in Thunder Bay
Frontier Lithium Closes $3.35 Million
Convertible Loan and Completes Land
Acquisition in Thunder Bay
SUDBURY, ON
,
Feb. 28, 2025
/CNW/ - Frontier Lithium ("Frontier" or "the Company") (TSXV: FL) is
pleased to announce that, further to its
press release dated
February 25, 2025
,
the Company has
closed (i) the previously disclosed unsecured convertible loan for aggregate proceeds of
$3,350,000
("Convertible Loan") (the "Financing") and (ii) the acquisition of a vacant industrial site on Mission
Island in
Thunder Bay, Ontario
("Mission Island Lands"). The Mission Island Lands, located at 1900
108th Street in
Thunder Bay, Ontario
, were formerly home to a coal-fired electricity generating
station operated by Ontario Power Generation.
Mission Island Lands
The Mission Island Lands comprise 183 acres of heavy industrial property, including a 50-acre water
lot, making it an ideal site for the Company's proposed lithium conversion facility. The site boasts
existing high-voltage infrastructure, proximity to utilities, rail and access to water transportation
networks, ensuring connectivity to provincial, national, and international markets.
"Securing land for Frontier Lithium's future plans in the
City of Thunder Bay
marks a pivotal moment
for
Northern Ontario
," said
Trevor Walker
, Chief Executive Officer of Frontier Lithium. "This
investment reinforces
Ontario's
strength as a critical hub for
Canada's
battery materials sector and
the global clean energy transition. In addition to housing our planned lithium processing facility,
regional office, and innovation centre,
Thunder Bay
is ideally positioned to support the broader
regional lithium supply chain as new resources come online."
"
Thunder Bay
has long been a hub for
Ontario's
mining industry. With Frontier as an anchor, we
believe
Thunder Bay
will become a center for critical mineral processing," said
Ken Boshcoff
, Mayor
of
Thunder Bay
. "We're excited about what Frontier is planning and for the economic opportunities
they'll help create."
As part of its commitment to sustainable resource development, Frontier Lithium is working closely
with community partners, industry stakeholders, and government agencies to ensure the successful
execution of this transformative project in Thunder Bay—reinforcing
Canada's
position as a global
leader in battery materials production.
Financing
The Financing has closed on the terms disclosed in the press release dated
February 25, 2025
. It
was provided by a lender that is a related party to the Company under Multilateral Instrument 61-
101 and TSXV Policies due to its affiliation with Mr.
Reginald (Rick) F. Walker
, Chairman of the
Board of Directors.
The net proceeds from the Financing were used to purchase the Mission Island Lands. The
convertibility of the Loan into common shares of the Company remains subject to receipt of final
approval from the TSX Venture Exchange.
Image: "Aerial view of the Mission Island Lands, a 183-acre industrial property in Thunder Bay,
Ontario.” (CNW Group/Frontier Lithium Inc.)
About Frontier Lithium
Frontier Lithium Inc. is a pre-production mining company with an objective to become a strategic and
integrated supplier of premium spodumene concentrates as well as battery-grade lithium salts to the
growing electric vehicle, and energy storage markets in North America. The Company's PAK Lithium
project maintains the largest land position and resource in a premium lithium mineral district located
in
Ontario's
Great Lakes region.
About the PAK Lithium Project
The PAK Lithium Project is a fully integrated lithium development initiative, developing
North
America's
highest-grade lithium reserves. A joint venture between Frontier Lithium Inc. (92.5%) and
Mitsubishi Corporation (7.5%), the project involves the extraction of lithium ore, advanced processing
to produce high-purity lithium concentrates, and downstream refining facility to manufacture battery-
grade lithium salts. A 2023 Pre-Feasibility Study by BBA E&C Inc., titled
"National Instrument 43-
101 Technical Report PFS PAK Lithium Project"
, estimates a 24-year project life with a post-tax
NPV (8%) of
US$1.74
billion and an IRR of 24.1%. These results were disclosed in a May 31,
2023, press release and filed on SEDAR+ (
www.sedarplus.ca
).
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often, but not always, identified by the
use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective",
"continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar
words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties, and other
factors, many of which are beyond the control of the Company, that may cause the actual results,
level of activity, performance, or achievements of the Company to be materially different from those
expressed or implied by such forward looking statements. Forward-looking statements and
information are based on plans, expectations and estimates of management at the date the
information is provided and are subject to certain factors and assumptions. The Company is making
forward looking statements, with respect to, but not limited to: the Financing, including the proceeds,
the use of proceeds, final approvals, the terms of the Convertible Loan and the Mission Island Lands
and plans thereof , including any notice/announcements to be made in connection therewith.
Investors should continue to review and consider information disseminated through news releases
and filed by the Company on SEDAR+. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those contained in forward looking
statements, there may be other factors that cause results not to be as anticipated, estimated or
intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks
and uncertainties, some of which are described herein. Such forward-looking statements necessarily
involve known and unknown risks and uncertainties, which may cause the Company's actual
performance and results to differ materially from any projections of future performance or results
expressed or implied by such forward-looking statements. Any forward-looking statements are made
as of the date hereof and, except as required by law, the Company assumes no obligation to
publicly update or revise such statements to reflect new information, subsequent or otherwise.
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.
SOURCE
Frontier Lithium Inc.
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%SEDAR: 00008434E
For further information:
Company Contact Information: Bora Ugurgel, Senior Manager, Investor
Relations, 2614 Belisle Drive, Val Caron, Ontario, P3N 1B3, CANADA, T. +001 705.897.7622, F.
+001 705.897.7618
CO: Frontier Lithium Inc.
CNW 19:43e 28-FEB-25