Frontier Lithium Closes $1,101,500 in Financing Oversubscribed by 120%
SUDBURY, January 8, 2019 - Frontier Lithium Inc. (TSX-V: FL) (the "Company") announces the closing of a non-brokered Flow Through private placement offering for a total of 2,622,619 units ("Units") of the Company priced at $0.42 per Unit, for total gross proceeds of $1,101,500. The Flow Through private placement was oversubscribed from the initial offering by $601,500, issuing an additional 1,432,143 common shares of the Company. 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 $0.50 for a period of thirty (30) months from the date of issuance.
In connection with the CDN $1,101,500 Offering, the Company issued finder's fees of CDN $61,578 and 146,614 finder warrants. Each finder option will be exercisable at a price of $0.48 into one common share for a period of thirty (30) months from the date of issuance.
All of the shares issued pursuant to the Flow Through private placement are subject to a minimum 4-month hold period. 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 Canadian junior mining company and have the largest land position in the Electric Avenue, a newly emerging premium lithium-metal district hosted in the Canadian Shield of northwestern Ontario. Frontier is implementing a phased approach to development for becoming a producer of technical grade lithium concentrates required to produce premium glass/ceramics as well as supplying a by-product of chemical grade concentrates for the production of lithium hydroxide required for the burgeoning lithium battery industry.
Frontier's goal is to become a low-cost, fully integrated lithium 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. The deposit boasts its lithium in a rare, high-purity, low-iron spodumene and is analogous to the Greenbushes' Deposit in SW Australia, which supplies approximately 40% of the world's lithium demands. Frontier has recently discovered a new LCT Pegmatite showing that called the Spark showing, which at surface has displayed a channel cut with similar grade and composition to PAK Lithium Deposit. The surface exposure is 3 times larger than the PAK pegmatite which widths greater than 100m and a strike length of more than 300m. The showing is the focus of project exploration as it appears that it is the easiest way to increase resource tonnage on the property. Currently the company is awaiting results of an additional 200m of channels.
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.
The PAK lithium deposit remains open in all directions and Company Management is working towards developing a viable operation. The Company has completed a pre-feasibility study to assess the economic viability and technical feasibility of producing lithium concentrates.
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 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 technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3).
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.
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
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.