Frontier Announces Exercise of Warrants, Options and Shares for Debt Financing for Proceeds of $763,809
Sudbury, Ontario (FSCwire) - Frontier Lithium Inc. (TSX.V: FL) Frontier is pleased to announce that a total of 2,508,497 common shares have been issued as a result of combination of exercise of share purchase warrants and options since March 1, 2017 at a weighted average price of $0.18 per common share. This results in $480,309 of aggregate proceeds to Frontier Lithium.
Frontier is pleased to also report that it has received a positive response from a creditor concerning a “Shares for Debt Financing”. $282,500 of debt is owed to a company owned by one “non-arm’s length” individual. Frontier proposes to issue up to 882,813 common shares at a price of $0.32. The financing is subject to regulatory approval and would have a hold period of four months.
The exercise of these warrants and options represent a strong vote of confidence by our shareholder’s with support of the current phase of the PAK Lithium Project. Proceeds from the exercised warrants and options will be used to advance exploration and complete the ongoing pre-feasibility study of Frontier’s 100% owned PAK Lithium Project located in northwestern Ontario. The Company further updates that the pre-feasibility is conservatively anticipated to be completed in the third quarter of calendar 2017.
Company Contact Information
Trevor R. Walker, President
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.897.7622
F. +001 705.897.7618
Media Requests
Joseph Mansourian
Manager, Communications & Branding
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.618.0070
F. +001 705.897.7618
About Frontier Lithium Inc.
Frontier’s goal is to become a low-cost, fully integrated lithium and tantalum producer through development of the PAK lithium deposit in Ontario, Canada. Frontier maintains a tight share structure with management ownership exceeding 30% of the Company. CAD $4 million of exploration work has been conducted from 2013 to 2016 on the deposit which boasts its lithium in a rare, high-purity, low-iron spodumene. The Company has adopted a staged growth approach to exploration and development in order to avoid unnecessary share dilution – a strategic imperative for the Company. The initial target market is the glass-ceramic industry which consumes roughly one-third of global lithium supply and is currently faced with monopolistic conditions, coupled with major lithium producers increasingly directing output toward supporting battery manufacture.
Ceramic/glass customers prefer to source technical-grade (low-iron) spodumene concentrate in excess of 7% lithium oxide (Li2O), if available, to avoid inferior lower grade petalite concentrates, or paying much higher prices for battery grade lithium compounds that require chemical plants costing hundreds of millions of dollars.
The PAK lithium deposit remains open in all directions and Company Management believes the resource can be developed into a world-class operation. The Company is currently conduction pre-feasibility to produce lithium concentrates. If production of lithium concentrates can be established from Frontier, the possible second stage of investment and longer term prospect is to further process some of PAK’s output to produce the higher purity lithium compounds required for lithium battery technologies used in the electrification of transportation and electric grid storage applications.
For additional information, please visit the company website at www.frontierlithium.com
About the PAK Lithium Project
The PAK Lithium Project lies close to the boundary between two geological sub-provinces of the western Superior geologic province in northwestern Ontario and hosts a rare metals pegmatite deposit. The deposit is an LCT (lithium- cesium- tantalum) type pegmatite. These types of pegmatites have been the principal source of hard rock lithium, tantalum, rubidium and cesium ores mined in the world but there are comparatively few commercially-viable deposits.
Frontier is actively exploring its 100% owned project which contains the Pakeagama Lake pegmatite. The PAK deposit is one of the highest grade lithium mineral resources in North America which has a current Measured and Indicated Resource of 7.89 million tonnes of 1.73% Li2O equivalent (eq.) and Inferred Resource of 295,600 tonnes of 1.35% Li2O eq. which has a technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3). The deposit has adjacent zones that are enriched in tantalum and rubidium. Frontier is also evaluating the phased co-production of tantalum and mica-product concentrates once lithium mineral production has been commercialized.
The deposit now has a known 500m strike length with an estimated true width varying from 10m to 125m with a sub-vertical orientation. The resource remains open to depth and along strike to the northwest and southeast.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/FrontierLithium05162017.pdf
Source: Frontier Lithium Inc. (TSX Venture:FL)
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