Frontier Lithium Reports Third Quarter Results
FRONTIER LITHIUM REPORTS THIRD
QUARTER RESULTS
SUDBURY, ON, February 27, 202 3 - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2)
(OTCQX: LITOF) ("Frontier" or the "Company") has reported financial results for the third
quarter ended December 31st, 2022.
The financial statements and the related management's discussion and analysis have
been filed on SEDAR (www.sedar.com) and can be viewed under the company's profile
on SEDAR.
Highlights For The Current Quarter And Recent Developments
Financial Highlights
• 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 was completed through a syndicate
of underwriters co-led by RBC Capital Markets and Goldman Sachs Canada Inc.
(the "Joint Bookrunners"), and including BMO Nesbi tt 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 (a "Common Share")
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 will entitle the
holder thereof to purchase one common share of the Company (a "Warrant
Share") at a price of $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, located in
Northwestern Ontario, as well as general administration and corporate purposes.
• As at December 31, 2022, the Company had cash and cash equivalents of $30 .1
million (March 31, 2022 - $17.7 million) and positive working capital of $30.2 million
(March 31, 2022 - $17.6 million). The Company anticipates having sufficient funds
to meet its corporate and administrative expenses at least until December 31,
2023. The Company reported a net loss and comprehensive loss of $6.8 mi llion
($0.03 per share) for the three months ended December 31, 2022, compared to a
loss of $2.1 million ($0.01 per share) for the comparable period last fiscal year
resulting in an increase of $4.7 million.
• The Company reported $0.3 million interest income during the current quarter from
its investment in Guaranteed Investment Certificate (“GIC”) accounts to further
offset operating costs.
Exploration Highlights
• The Company has completed the previously announced Phase XII drill program in
October 2022 with 14,641.1 metres drilled in 45 holes and has reported analysis
from all drill holes as of February 8, 2023. The detailed results are available on
SEDAR (www.sedar.com). The program was successful in that the in-fill drill hole
intersections were as anticipated in both grades and width and the host rock
appears relatively competent. Drilling also indicates that the Spark pegmatite
remains open at depth and to the west. To the east, the pegmatite is beginning to
pinch out but still remains open.
Between May and August 2022, the Company conducted both detailed and
regional mapping and prospecting in areas both proximal to known spodumene -
bearing pegmatites and in under -explored areas within its approximately 27,000
hectare land tenure. The entire project area was covered at a regional scale and
initial results were released on January 31, 2023. A new spodumene -bearing
pegmatite zone, 10 by 15m, was discovered approximately 1 km west -northwest
of the Spark pegmatite. Grab samples averaged 3.1% Li2O. Prospecting and
mapping in the Pennock pegmatite area discovered additional pegmatite dykes up
to 30m in length and 3 to 5 m in width. Grab samples averaged 1.7% Li2O. Several
other pegmatite veins and narrow dykes were located, however, spodumene was
not confirmed and grab samples indicated background values.
• During September 2022, a UAV (drone) aerial magnetic survey was flown over a
15 km2 area encompassing the region PAK, Bolt, Spark and the new discovery
west-northwest of Spark. Highly magnetic horizons are known to occur in the
metasediments (banded iron formation) at PAK as well as t he flanking
metavolcanics. The data collected from the survey will be used in conjunction with
LiDAR data to assist with the identification of geology and structure and to assess
its usefulness for regional exploration.
• The Company continues to work on e nvironmental baseline studies, a step that
will enable it to advance project permitting.
• In January 2023, the Company entered into an arm’s length purchase agreement
to purchase a camp, together with inventories, for total proceeds of $2.0 million
payable as follows 1) $0.5 million in February 2023 and 2) the remaining $1.5
million on possession of the camp which is anticipated in May 2023.
Corporate Highlights
• In February 2023, the Company appointed Mr. Graeme Goodall as its Vice
President of Operations. Mr. Goodall is a Professional Engineer with a designation
in Metallurgical Engineering. He holds a doctorate degree, master’s degree and
bachelor’s degree in Materials Engineering from McGill University in Montreal,
Quebec. Mr. Goodall brings over twenty years of experience focused on
metallurgy, pyrometallurgy and extractive operations for multi-national mining and
metals producers, including Glencore, Vale, Rio Tinto and Noranda. His most
recent position was Manager, Pyrometallurgy and Furnace In tegrity at Glencore
XPS in Sudbury and prior to that was Interim Technical Director and
Superintendent, Furnace Integrity at Koniambo SAS in New Caledonia.
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 full y integrated lithium
operation, including the mine and mill and the conversion plant for production of battery -
quality lithium salts.
Company Contact 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
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 sta tements 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 in clude 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.