Frontier Lithium closes $7.6 Million in Oversubscribed Private Placement
Frontier Lithium closes $7.6 Million in
Oversubscribed Private Placement
SUDBURY, ON
,
March 31, 2021
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (OTCQX: LITOF) (FSE:
HL2) ("Frontier" or "the Company") announces the closing of a non-brokered private placement
offering for a total of 7,636,371 units ("Units") of the Company priced at
$1.00
per Unit, for total
gross proceeds of
$7,636,371
. Each Unit consists of one (1) Common Share of the Company and
one-half (½) share purchase warrant (the "Warrant"), for total of 3,818,186 warrants priced at
$1
.25 for a period of 24 months following the closing date of the issuance. The private placement
was oversubscribed from the initial offering by
$4,636,371
, issuing an additional 4,636,371 common
shares of the Company.
In connection with the Offering, the Company issued finder's fees of CDN
$188,422.15
(totaling
2.47% of the gross proceeds of the Offering) and 185,428 finder warrants. Each finder warrant will
be exercisable at a price of
$1.25
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 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
.
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 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, 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 (2021 Preliminary Economic
Assessment, Fully Integrated PAK Lithium Project" by BBA Engineering Ltd. report to be released
by
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
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 14:03e 31-MAR-21