Frontier Lithium closes oversubscribed flow through private placement
Frontier Lithium closes oversubscribed flow
through private placement
SUDBURY, ON
,
Nov. 18, 2020
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (the
"Company") announces the closing of a non-brokered Flow Through private placement offering for a
total of 3,025,710 units ("Units") of the Company priced at
$0.35
per Unit, for total gross proceeds
of
$1,058,998
. Each Unit consists of one (1) Common Share of the Company and one-half (½) share
purchase warrant (the "Warrant"). Each full Warrant entitles the holder thereof to purchase one (1)
additional common share of Frontier Lithium at an exercise price of
$0.45
for a period of twenty-four
(24) months from the date of issuance. In connection with the CDN
$1,058,998.55
offering, the
Company issued finder's fees of CDN
$ 48,391
and 138,261 finder warrants.
All of the Shares and Warrants issued pursuant to the private placement are subject to a minimum 4-
month and one day statutory hold period. The Company is relying on the exemption from minority
shareholder approval requirements under MI 61-101 as the fair market value of the participation in
the Offering by the Insiders does not exceed 25% of the market capitalization of the Company. 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 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 65 km 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 Bolt pegmatite, between PAK and Spark deposits and the Pennock Lake
pegmatite occurrence a further 30 km along the Project. Frontier's premier Great Lakes location is
advantaged by favorable geology, proven metallurgy with access to intermodal hubs, infrastructure,
power, and mining along with downstream lithium processing expertise and auto OEM's.
The PAK deposit has a mineral reserve in the proven and probable categories of 5.77 MT averaging
2.06% Li
2
O and hosts a rare technical/ceramic grade spodumene with low inherent iron (below
0.1% Fe
2
O
3
). The Spark Deposit, 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.
Additional information regarding Frontier Lithium is available on SEDAR at
www.sedar.com
under
the Company's profile and on its website at
www.frontierlithium.com
, including various pictures of
ongoing work at the project.
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:
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 15:20e 18-NOV-20