Frontier Lithium Reports Results FOR the Three and Six Months Ended
FRONTIER LITHIUM REPORTS RESULTS FOR
THE THREE AND SIX MONTHS ENDED
SEPTEMBER 30, 2022
SUDBURY, ON
,
Nov. 29, 2022
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX:
LITOF) ("Frontier" or the "Company") has reported financial results for the three and six months
ended
September 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.
Highlights for the quarter ended
September 30, 2022
and recent developments:
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 deposit. Subsequently on
August 17
,
September 20
,
October 11
, and
November 16
of 2022, the Company announced the results for
seventeen additional drill holes and one channel, completed during the Phase XII drill program
on the Spark pegmatite deposit. The detailed results from this drilling have been released by the
Company and are available on SEDAR (
www.sedar.com
). As of
November 16, 2022
, the
Company has completed 14,641.1 metres of drilling in 45 holes and has reported analysis from
21 drill holes. The initial objective for the Phase XII drill program was focused on converting the
inferred resource within the Spark deposit to the indicated category in preparation for a Pre-
Feasibility Study on the PAK Lithium Project. The latter half of the program included
geotechnical drilling for ground control and pit design purposes as well as step out drilling to
define the eastern and western extents of the ore body.
On
October 11, 2022
, the Company announced that it has elected to introduce a phased
approach in the PFS currently being prepared by the Company through the advancement of a
mine and mill development to initially produce premium spodumene concentrates in Phase 1.
The Phase 2 plan would increase mine and mill production to feed a downstream refinery to
produce lithium chemicals for the energy storage and electric vehicle battery market.
Due to the proposed phase approach abovementioned and delays on receiving the assay
results from the recent Phase XII drill program, the Company anticipates that the PFS will be
completed in Spring of 2023.
On
November 10, 2022
, the Company closed a bought deal prospectus offering and issued
10,465,000 units of the Company, including 1,365,000 units issued to underwriters for over-
allotment option at a price of
$2.20
per unit, representing total gross proceeds of
$23.0 million
(the "Offering").
The Offering was completed through a syndicate of underwriters co-led by RBC Capital Markets
and Goldman Sachs Canada Inc. (the "Joint Bookrunners"), and included BMO Nesbitt Burns Inc.,
Canaccord Genuity Corp., Cormark Securities Inc. and Stifel Nicolaus Canada Inc. (collectively with
the Joint Bookrunners, the "Underwriters"). The Underwriters received a cash commission equal to
5.5% of the gross proceeds of the Offering.
Each Unit consists of one common share of the Company and one-half of one common share
purchase warrant of the Company totaling to 10,465,000 common shares and 5,232,500 warrants.
Each warrant entitles the holder thereof to purchase one common share of the Company at a price
of
C$2.75
for a period of 36 months following the closing of the Offering.
The net proceeds of the Offering will be used by the Company to fund exploration and development
activities at the PAK Lithium Project for work related to delivery of a potential definitive feasibility
study, as well as general administration and corporate purposes.
The comparative figures for the three and six months ended
September 30, 2021
have been
restated. The restated comparative figures replace and supersede the corresponding information
contained in the previously filed financial statements and management 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
September 30, 2022
Unaudited Condensed Interim Financial Statements, please refer to the details
in Note 13 of the quarter ended
September 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 three months and six months ended
September 30, 2022
, management determined that
there were clerical adjustments that needed to be made for the comparative period three and
six months ended
September 30, 2021
.
About Frontier Lithium Inc.
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 premium lithium mineral district
located in
Ontario's
Great Lakes region.
About PAK Lithium project
The PAK lithium project contains one of
North America's
highest-grade lithium resources. 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 2021
preliminary economic assessment (National Instrument 43-101 technical report titled "NI 43-101
Technical Report, Pak Property, PAK, Red Lake Mining District,
Ontario, Canada
" by BBA E&C Inc.,
with an effective date of
April 5, 2021
) delivered a fully integrated lithium operation, including the
mine and mill and the conversion plant for production of battery-quality lithium salts.
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 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 20:00e 29-NOV-22