Frontier Lithium Reports First Quarter Results
FRONTIER LITHIUM REPORTS FIRST
QUARTER RESULTS
SUDBURY, ON
,
Aug. 25, 2022
/CNW/ -
Frontier Lithium Inc.
(TSXV: FL) (FRA: HL2) (OTCQX:
LITOF) ("Frontier" or the "Company") has reported financial results for the first quarter ended
June
30, 2022
.
The financial statements and the related management's discussion and analysis have been filed on
SEDAR and can be viewed under the company's profile on SEDAR.
The company continues to advance its plans to develop a lithium salts refining plant in
North
America's
Great Lakes region. Frontier is targeting the delivery of a preliminary feasibility study
("PFS") by the end of calendar 2022, assessing the viability of constructing and operating a fully
integrated lithium mining and chemicals company to deliver battery-grade lithium carbonate and
lithium hydroxide for the burgeoning lithium-ion battery market in
North America
.
Highlights for the quarter ended
June 30, 2022
, and recent developments:
On
May 2, 2022
, the Company announced its planned exploration program for the fiscal year
ended
March 31, 2023
. Exploration targets for the PAK Lithium project include infill and step out
drilling on the Spark deposit and detailed and regional mapping and prospecting in areas
proximal to known spodumene-bearing pegmatites and in under-explored areas within its
approximately 27,000 hectare land tenure. The Company plans to continue evaluating the Spark
pegmatite with a 15,000 metre drill program which began in
May 2022
utilizing two diamond
drills. It is anticipated that the measured and indicated resource categories of the deposit will be
substantially increased. Concurrently, during the drilling program, regional and detailed
geological mapping and prospecting will also be carried out;
At
June 30, 2022
, the company had cash and cash equivalents of
$16.7 million
, leaving it well
positioned to execute on its plan mentioned above to complete the PFS and planned 15,000
metre drill program. The Company also transferred approximately
$13 million
cash to high
interest rate Guaranteed Investment Certificate accounts to generate higher interest income to
contribute towards operating costs;
On
June 7, 2022
, the Company announced the results from the drilling completed during the
Phase XI drill program on the Spark pegmatite. The Phase XI drill program was completed in
March 2022
with a total of 1,342.5 metres in five holes. The drilling confirmed that the deposit
remains open to the west and a new zone to the NW was discovered which will require further
investigation in the future. The detailed results have been released by the Company and are
available on SEDAR (
www.sedar.com
).
The Phase XII drill program is in progress and the Company now anticipates that this drill
program will be completed by
mid-October 2022
. On
July 25, 2022
, the Company announced
the results for four of the drill holes completed during the Phase XII drill program on the Spark
pegmatite. Subsequently on
August 17, 2022
, the Company announced the results of four
additional drill holes completed during the Phase XII drill program on the Spark pegmatite. The
detailed results have been released by the Company and are available on SEDAR (
www.sedar.com
). The Company has completed 8,000 metres of drilling in 24 holes and has
reported analysis from 8 drill holes as of
August 17, 2022
. The initial drill holes were designed
to convert Inferred material to Indicated for the planned open pit at the Spark deposit. The
drilling was focussed on the Inferred resource within the central portion of the Spark deposit at
depth. These results will be included in the upgraded Measured-Indicated Resource for Spark
that will become part of the PFS.
Lithium Chemical Test Work Development:
For the purpose of the PFS, the Company is
exploring more conventional processes such as the sulphate process at the lithium chemicals
conversion plant which is low-risk and used extensively in
East Asia
for manufacturing lithium
carbonate and hydroxides from hard-rock spodumene sources. Lithium chemicals piloting is
progressing and the Company expects the program to be completed by the end of September,
2022.
Strengthened the Company's management team with the appointment of
Tony Zheng
as Chief
Financial Officer, bringing extensive experience in finance matters.
The comparative figures for three months ended
June 30, 2021
have been restated. The restated
comparative figures replace and supersede the corresponding information contained in the previously
filed financial statements and management's discussion and analysis of the Company which should
no longer be relied upon.
For further information regarding the restatement of the comparative figures contained in the
June
30, 2022
Unaudited Condensed Interim Financial Statements, please refer to the details in Note 13
of the quarter ended
June 30, 2022
Unaudited Condensed Interim Financial Statements which are
summarized as follows:
Change in Accounting Policy – During the year ended
March 31, 2022
, the Company changed
its accounting policy for exploration and evaluation expenditures to expense them as incurred.
Management considered that this change in accounting policy will result in clearer, more
relevant and reliable financial information by reducing financial reporting complexity. Under the
previous accounting policy, exploration and evaluation expenditures were capitalized.
Related Party Disclosures – It was determined that there were additional related party
transactions in the prior year financial statements that had not been disclosed. The comparative
disclosures in Note 11 have been revised accordingly.
Prior Period Adjustment – In the process of preparing the Company's unaudited condensed
interim financial statements for the first quarter ended
June 30, 2022
, management determined
that there were some adjustments that need to be made on the Statements of Cash Flows for
the comparative period three months ended
June 30, 2021
, in addition to the adjustments
resulting from "Change in Accounting Policy" mentioned above. These adjustments on the
Statements of Cash Flows for the comparative period three months ended
June 30, 2021
are
summarized below:
1
.
There was a clerical error when adding the subtotal for the "total cash used in operations";
2
.
The Company purchased a 2.5% net smelter royalty ("NSR") on the Pakeagama Lake Property
during the three months ended
June 30, 2021
for a total cash proceeds of
$4.0 million
and
1,000,000 common shares valued at
$1.0 million
. The "additions to exploration and evaluation
assets" has been corrected to
$4.0 million
which only includes the cash portion of the additions;
3
.
$1.4 million
was presented incorrectly as "cash restricted for flow-through expenditures" and it's
now presented as "cash and cash equivalents".
About Frontier Lithium
Frontier Lithium is a preproduction business with an objective to become a 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 maintains the largest land position and resource in a new premium lithium mineral
district located in
Ontario's
Great Lakes region.
About PAK Lithium Project
The PAK Lithium Project is one of the highest quality known lithium mineral resource in
North
America
due to its high-grade and low impurity properties in the pegmatite ore material and the
spodumene mineral. The Company published a Preliminary Economic Assessment ("PEA") in
April
2021
that indicated an after-tax Net Present Value ("NPV") at an 8% discount rate of US
$974 million
and a 21% after-tax Internal Rate of Return ("IRR") through a fully-integrated lithium operation
utilizing spodumene concentrate generated from the PAK Lithium Project to achieve downstream
conversion for production of battery-quality lithium chemicals and concentrate for the glass and
glass-ceramics market. For details, please refer to the NI 43-101 Technical report by BBA
Engineering Ltd. issued on
April 9, 2021
and filed under the Company's profile on SEDAR on
April
14, 2021
.
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 news release includes certain statements that constitute "forward-looking
information" or "forward-looking statements". All statements in this release, other than statements of
historical fact, including but not limited to statements that address future production, reserve
potential, exploration drilling, exploitation activities and events or developments that the Company
expects are forward-looking statements. Forward-looking statements are based upon the
expectations and assumptions that, while considered reasonable by the Company are subject to
uncertainties and contingencies. As such, the 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. The Company does not
undertake any obligation to update or revise any forward-looking information, except as required by
law. For more information on the risk factors that could cause actual results to differ materially from
the forward-looking statements readers should review the risk factors contained in the Company's
most recent Annual Information Form available at www.
sedar.com
.
SOURCE
Frontier Lithium Inc.
View original content:
http://www.newswire.ca/en/releases/archive/August2022/25/c5290.html
%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 08:21e 25-AUG-22