Frontier Announces Exercise of Warrants, Options and Shares for Debt Financing for Proceeds of $943,795.50
Sudbury, Ontario (FSCwire) - Frontier Lithium Inc. (TSX.V: FL) Frontier is pleased to announce that a total of 4,088,725 common shares have been issued as a result of combination of exercise of share purchase warrants and options since May 15, 2017 at a weighted average price of $0.23 per common share. This results in $943,795.50 of aggregate proceeds to Frontier Lithium.
Frontier is pleased to also report that it has received a positive response from creditors concerning a “Shares for Debt Financing” of $197,585.35. $104,791.66 of debt is owed to a company owned by one “non-arm’s length” individual and the balance of $92,793.69 to one arm’s length company. Frontier proposes to issue up to 493,963 common shares at a price of $.40. In addition to the common shares issued to the arm’s length party, Frontier will issue one (1) share purchase warrant (the “Warrant”) that entitles the holder thereof to purchase one additional common share of Frontier at an exercise price of $.64 for an eighteen (18) month period. 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 also announces that it has granted an additional 1,966,667 stock options. The options are to replace stock options that have been exercised by management in 2016 and 2017. The options granted are set for a period of five years, expiring on October 31, 2022. The options are priced at $.40 and are subject to regulatory approval.
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 $6 million of exploration work has been conducted from 2013 to date on the deposit which boasts its lithium in a rare, high-purity, low-iron spodumene. 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.
The PAK lithium deposit remains open in all directions and Company Management believes the resource can be developed into a viable operation. The Company is currently conducting a pre-feasibility study to assess the economic viability and technical feasibility of producing 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.
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.) or 1.58% Li20 and 104 ppm Ta2O5 and an Inferred Resource of 295,600 tonnes of 1.35% Li2O eq. or 1.20% Li2O and 103 ppm Ta2O5 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.
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
Trevor R. Walker
President & CEO
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.897.7622
F. +001 705.897.7618
Media Requests
Joseph Mansourian
Manager, Investor Relations
2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA
T. +001 705.618.0070
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.
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To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Frontier10312017.pdf
Source: Frontier Lithium Inc. (TSX Venture:FL, OTC Bulletin Board:HLKMF, FWB:HL2)
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