SUDBURY, ON, Nov. 18, 2020 /CNW/ - Frontier Lithium Inc.
(TSXV: FL) (the "Company") announces the closing of a
non-brokered Flow Through private placement offering for a total of
3,025,710 units ("Units") of the Company priced at $0.35 per Unit, for total gross proceeds of
$1,058,998. Each Unit consists of one
(1) Common Share of the Company and one-half (½) share purchase
warrant (the "Warrant"). Each full Warrant entitles the holder
thereof to purchase one (1) additional common share of Frontier
Lithium at an exercise price of $0.45
for a period of twenty-four (24) months from the date of issuance.
In connection with the CDN $1,058,998.55 offering, the Company issued
finder's fees of CDN $ 48,391 and
138,261 finder warrants.
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 Company is relying on the exemption from minority
shareholder approval requirements under MI 61-101 as the fair
market value of the participation in the Offering by the Insiders
does not exceed 25% of the market capitalization of the Company.
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 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 maintains 100% interest
in the PAK Lithium Project which contains one of North America's highest-grade, large tonnage
hard-rock lithium resources in the form of a rare low-iron
spodumene. The Project has significant upside exploration
potential. Frontier is a pre-production business that has recently
commenced a Preliminary Economic Assessment study targeting the
manufacturing of battery quality lithium hydroxide in the Great
Lakes Region to support electric vehicle and battery supply chains
in North America. Frontier
maintains a tight share structure with management ownership
approximately 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 65 km of the 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 Bolt pegmatite,
between PAK and Spark deposits and the Pennock Lake pegmatite
occurrence a further 30 km along the Project. Frontier's
premier Great Lakes location is advantaged by favorable geology,
proven metallurgy with access to intermodal hubs, infrastructure,
power, and mining along with downstream lithium processing
expertise and auto OEM's.
The PAK deposit has a mineral reserve in the proven and probable
categories of 5.77 MT averaging 2.06% Li2O
and hosts a rare technical/ceramic grade spodumene with low
inherent iron (below 0.1% Fe2O3). The Spark
Deposit, has a mineral resource estimate of 3.2 MT averaging 1.59%
Li2O (indicated) and 12.2 MT averaging 1.36%
Li2O (inferred), as per the NI 43-101 Technical Report,
"PAK prefeasibility study, Spark resource estimation" by WSP Canada
Inc. and Nordmin Engineering Ltd., updated on March 23, 2020. The Company recently initiated a
Preliminary Economic Assessment study for a fully integrated
project producing lithium hydroxide from the PAK Lithium
Project.
Additional information regarding Frontier Lithium is
available on SEDAR at www.sedar.com under the Company's profile and
on its website at www.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.