SUDBURY, ON, Oct. 28, 2019 /CNW/ - Frontier Lithium Inc. (TSX.V: FL) (the "Company") is pleased to announce a non-brokered private placement to raise gross proceeds of up to $400,000 (the "Offering") by way of the issuance of up to 1,428,571 flow through share units (the "FT Unit") at a price of $0.28 per FT unit.
Each FT Unit will consist of one common share in the capital stock of Frontier ("Common Share") issued on a flow-through basis and a ½ Common Share purchase warrant ("FT Warrant"). Each full FT Warrant will entitle the holder to purchase one Common Share at a price of $0.375 per Common Share until the date which is 24 months following the closing date of the Offering, whereupon the FT Warrants expire. The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period.
Frontier Lithium reserves the opportunity to grant to eligible persons a finder's fee of a maximum 6% of the gross proceeds of the Offering and finder warrants of a maximum of 6% of the total number of Units sold under the Offering. Each finder warrant will be exercisable at an exercise price of $0.375 CDN into one common share for a period of 24 months from the date of issuance.
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 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
Frontier Lithium is a Canadian junior mining company with the largest land position in the Electric Avenue, an emerging premium lithium mineral district located in the Canadian Shield of northwestern Ontario. The company's PAK Lithium Deposit contains North America's highest concentration of rare low-iron spodumene. Frontier Lithium's objective is to firstly become a near term producer of premium technical grade lithium mineral concentrates of 2,000 tonnes of Lithium Carbonate Equivalent ("LCE") for glass producers. Through a phased approach to scale up to 20,000 tonnes by 2025 by ramping up production of concentrates and building a downstream processing facility to produce lithium chemicals required by glass and battery materials producers.
Frontier maintains a tight share structure with management ownership exceeding 30% of the Company.
About the PAK deposit
The PAK Deposit is located at the south end of Ontario's Electric Avenue, a newly emerging premium lithium-metal district which also hosts Frontier's new discovery at Spark showing (2km northwest) and the Pennock Lake pegmatite occurrence a further 30km along Frontier's PAK Lithium Project. The PAK deposit has a current Measured and Indicated Resource of 7.5 million tonnes of 2.02% Li2O and an Inferred Lithium Resource of 1.8 million tonnes of 2.10% Li2O which has a rare technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3) as per its NI 43-101 Technical Report, "Preliminary Feasibility Study" disseminated on April 16, 2018.
Additional information regarding Frontier Lithium is available on SEDAR at sedar.com under the Company's profile and on its website at 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.
For further information: 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