SUDBURY, ON, July 29, 2020 /CNW/ - Frontier Lithium Inc. (TSX.V: FL) (the "Company" or "Frontier") announces the closing of a non-brokered private placement offering for a total of 10,077,000 units ("Units") of the Company priced at $0.20 per Unit, for total gross proceeds of $2,015,400. Each Unit consists of one (1) Common Share of the Company and one-half (½) share purchase warrant (the "Warrant"). The private placement was oversubscribed from the initial offering by $765,400, issuing an additional 3,827,000 common shares of the Company.
In connection with the CDN $2,015,400 Offering, the Company issued finder's fees of CDN $84,624.00 (totaling 4.2% of the gross proceeds of the Offering) and 423,120 finder warrants. Each finder warrant will be exercisable at a price of $0.27 into one common share for a period of twenty-four (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 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 Frontier's 100% owned PAK Lithium Project located in northwestern Ontario.
About Frontier Lithium Inc.
Frontier Lithium is a Sudbury based, publicly listed, junior mining company with the largest land position in an emerging premium lithium mineral district located in the Great Lakes region of northern Ontario. The company is in late-stage exploration, early-stage development phase with the near-term goal of building a Demonstration concentrator under an advanced exploration permit. The company's PAK Lithium Project contains North America's highest-grade concentration of rare low-iron, lithium bearing mineral spodumene and is Ontario's largest resource with significant upside potential to increase. Frontier Lithium's current objective is to demonstrate the potential of the PAK Lithium Deposit to produce up to 2,000 tonnes Lithium Carbonate Equivalent ("LCE") of premium spodumene concentrates for glass producers and for feedstock to produce lithium chemicals.
Frontier maintains a tight share structure with management ownership exceeding 30% of the Company.
About the PAK Lithium Project
The PAK Lithium Project encompasses 26,774 hectares at the south end of Ontario's Electric Avenue, which is the largest land package hosting lithium bearing pegmatites in Ontario. The Project covers 65km of Avenue length and remains largely unexplored; however, since 2013 the company has delineated two premium spodumene bearing lithium deposits located 2.3 km from each other at the southwestern end of the project. Recently, Frontier confirmed the presence of spodumene with the Pennock Lake pegmatite occurrence a further 30km along Frontier's PAK Lithium Project.
The PAK deposit has a mineral reserve in proven and probable category of 5.77 MT averaging 2.06% Li2O. The deposit hosts a rare technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3). The "2019 Discovery of the year award" winning Spark Deposit has a mineral resource estimate of 3.2 MT averaging 1.59% Li2O in indicated and 12.2 MT averaging 1.36% Li2O in inferred category, as per NI 43-101 Technical Report, "PAK prefeasibility study, Spark resource estimation" by WSP Canada Inc. and Nordmin Engineering Ltd., updated on March 23, 2020.
SOURCE Frontier Lithium Inc.
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