SUDBURY, ON, May 15, 2019 /CNW/ - Frontier Lithium Inc.
(TSX.V: FL) (the "Company") is announcing that it has received
interest above the previously announced $1,500,000, and accordingly intends to increase
the amount to be raised under its non-brokered private placement
offering to $2,000,000, subject to
TSXV approval. All other terms of the offering remain as set out in
the Company's April 29, 2019 news
release. The company also closed its first tranche of the
non-brokered private placement for a total of $1,000,000 of flow-through funding.
The company now proposes to issue 5,000,000 units ("FT Unit") at
a price of $0.40 each. 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 purchase one Common Share a price of $0.50
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 $0.50
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.
Other business
The company announces that it entered into an employment
contract with Bora Ugurgel effective November 1, 2018. Mr. Ugurgel will lead the
investor relations and communication activities for Frontier and
serve as the point of contact for investor engagement to the
financial community and with current and potential
shareholders.
Under the terms of the employment, Frontier granted Mr. Ugurgel
an option to purchase 500,000 common shares at an exercise price of
$0.40 per share under the terms of
the stock option plan of Frontier, for a period of five (5) years
from the date of grant. The options were disclosed on November 7, 2018 press release.
About Frontier Lithium
Frontier is a pure play
Lithium junior mining company with the highest quality hard rock
deposit in North America. It also
has the largest land position on the Electric Avenue, Ontario's emerging premium lithium-metal
district hosted in the Canadian Shield of northwestern Ontario. The Company's objective is to is to
participate in a fully integrated North American Battery Ecosystem.
Our goal is to become a near term producer and scale up to 30,000
tonnes LCE (~3% of the world Lithium demand) by 2025. Frontier is
implementing a phased methodology to development for becoming a
rare producer of premium technical lithium concentrates required to
produce high quality glass and ceramics as well as supplying
chemical grade concentrates for the production of lithium chemicals
required for the burgeoning lithium battery industry.
Frontier maintains a tight share structure with management
ownership of 30% of the Company.
About the PAK deposit
The PAK Deposit is located at
the south end of Ontario's
Electric Avenue, 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.