Frontier Lithium Files Year-End
FRONTIER LITHIUM FILES YEAR-END MARCH
31, 2024 FINANCIAL RESULTS
SUDBURY, ON
,
July 24, 2024
/CNW/ -
Frontier Lithium Inc.
(TSXV: FL) (FRA: HL2) (OTCQX:
LITOF) ("Frontier" or the "Company") today announced the filing of its audited financial statements
for the year ended March 31, 2024 (the "Annual Financial Statements"). The Annual Financial
Statements, related management's discussion and analysis and management certifications have
been filed on SEDAR+ and can be viewed under the Company's profile at (
www.sedarplus.ca
) and
on the company's website at
www.frontierlithium.com
The Company continues to advance its PAK Lithium Project and assess the viability of constructing
and operating a fully-integrated lithium mine and chemicals processing facility to deliver battery-
grade lithium carbonate and lithium hydroxide for the burgeoning lithium-ion battery market in North
America.
Highlights for the Year Ended March 31, 2024 and Recent Developments
Exploration
The Company's Phase XIII drill program included four holes at Spark, extending the deposit and
delineating the Bolt pegmatite. As of
March 2024
, a total of 11,364 meters were drilled across 46
holes by the Company. At the PAK Deposit, 2,033 meters of geomechanical and hydrogeological
drilling was completed in preparation for the Company's proposed definitive feasibility study ("DFS").
At the Bolt Pegmatite, 3,805 meters were drilled in 15 holes, confirming an extension of over 600
meters along strike, with widths up to 75 meters. Results from these further drill holes indicate high-
grade intersections in the southwest and northwest lobes of the project.
Regional Mapping Program (Spark & Pennock)
The Company has completed detailed and regional mapping and has identified a new spodumene-
bearing pegmatite zone discovered near Spark, averaging 3.1% lithium oxide (Li2O). Channel
sampling confirmed significant lithium presence, and additional detailed prospecting, mapping, and
sampling has also revealed promising results at the Company's Pennock pegmatite area.
Pre-Feasibility Study
Strong results from the Company's pre-feasibility study ("PFS") were announced in
May 2023
, with
the full technical report published and filed on SEDAR+ on
July 14, 2023
. The PFS confirmed the
potential for the Company to be one of the largest, lowest-cost lithium hydroxide producer's in
North
America
, that may be essential for the electric vehicle ("EV") industry. The economic indicators in the
PFS included a pre-tax net present value ("NPV") of
US$2.59 billion
, post-tax NPV of
US$1.74
billion
, pre-tax internal rate of return ("IRR") of 28.6%, and post-tax IRR of 24.1%.
Definitive Feasibility Study
On
November 1, 2023
, DRA Americas Inc., a international multi-disciplinary engineering, project
delivery and operations management company, was selected by the Company for assistance and
preparation of the mine and mill portion of the DFS. Environmental Baseline Studies are ongoing to
support project permitting and infrastructure works are being completed to continue to support the
DFS in relation to stockpiles, tailing management, the mill, and related facilities.
Lithium Chemical Test Work Development
On
November 9, 2023
, a
$2 million
grant from the Northern Ontario Heritage Fund Corporation was
announced. This grant will support the construction of a small-scale facility that will focus
on developing internal reagent recycling technology required for the sustainable commercial
production of lithium chemicals.
Mitsubishi Joint Venture Partnership
In
March 2024
, a joint venture agreement between the Company and Mitsubishi Corporation was
entered into ("JV"). Under the JV, Mitsubishi acquired a 7.5% equity interest in the Company's
assets in exchange for
$25 million
, with an option for Mitsubishi, post-DFS, to increase their equity
position to 25% in the JV. This JV partnership supports the significance the PAK Lithium Project may
have to the North American EV supply chain. The JV transaction closed in
April 2024
and the
Company completed the structuring and transfer of the related mineral interests and accompanying
assets to subsidiaries of the JV at that time.
Corporate Leadership Changes
The Company strengthened the corporate leadership team with the addition of
Gregory Da Re
as
Vice President of Corporate Development in
June 2023
, bringing extensive EV battery supply chain
experience, and in
August 2023
,
Erick Underwood
was appointed as Chief Financial Officer of the
Company. Mr. Underwood brings over 25 years of experience to the Company in finance and project
development in the mining industry.
The Company had approximately
$12 million
in cash as at
March 31, 2024
, and this cash position
does not reflect the investment by Mitsubishi from the JV which closed in
April 2024
.
About Frontier Lithium
Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is a preproduction business with an
objective to become an integrated strategic domestic supplier of spodumene concentrates for
industrial users as well as battery-grade lithium hydroxide and other chemicals to the growing
electric vehicle and energy storage markets in
North America
. The Company's sole 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 contains
North America's
highest-grade lithium resource and is the largest in
Ontario
by size. The project encompasses close to 27,000 hectares and remains largely unexplored;
however, since 2013, the company has delineated two premium spodumene-bearing lithium deposits
(PAK and Spark), located 2.3 kilometres apart. Exploration is continuing on the project through two
other spodumene-bearing discoveries: the Bolt pegmatite (located between the PAK and Spark
deposits), as well as the Pennock pegmatite (25 kilometres northwest of PAK deposit within the
project claims). A 2023 Pre-Feasibility Study "National Instrument 43-101 Technical Report PFS
PAK Lithium Project" by BBA E&C Inc., delivered a 24-year project life, delivering a post-tax
NPV(8%) of
US$1.74 billion
and IRR of 24.1% as per the press release disseminated on
May 31,
2023
, and was filed on SEDAR+ (
www.sedarplus.ca
)
Forward-looking statements
This news release includes certain statements that may be deemed "forward-looking statements".
All statements in this release, other than statements of historical fact constitute forward-looking
statements. Forward looking statements contained in this news release include, but are not limited
to, statements with respect to: estimated mineral resources, estimated capital costs to construct
mine facilities, estimated operating costs, the duration of payback periods, estimated amounts of
future production, estimated cash flows, net present value, the PFS and DFS and statements that
address future production, resource and reserve potential, exploration drilling, exploitation activities
and events or developments that the Company expects.
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 may differ materially from those expressed in the forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. Risk factors that could cause
actual results to differ materially from those in forward looking statements include: market prices for
commodities, increases in capital or operating costs, construction risks, availability of infrastructure
including roads, regulatory and permitting risks, exploitation and exploration successes, continued
availability of capital and financing, financing costs, 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, please review the
Company's public filings available at www.sedarplus.ca.
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, 2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA, T. +001 705.897.7622, F. +001
705.897.7618
CO: Frontier Lithium Inc.
CNW 21:50e 24-JUL-24