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SUDBURY, ON, Nov. 24, 2021 /CNW/ - Frontier Lithium
Inc. (TSXV: FL) (OTCQX: LITOF) (FSE: HL2) ("Frontier" or
the "Company") is pleased to announce that it has entered
into an agreement with Canaccord Genuity Corp. and BMO Capital
Markets (collectively, the "Underwriters"), pursuant to
which the Underwriters have agreed to purchase, on a "bought deal"
basis, 5,377,000 flow-through common shares of the Company (the
"Flow-Through Shares") that will qualify as "flow-through
shares" (within the meaning of subsection 66(15) of the Income Tax
Act (Canada)) at a price of
$1.86 per Flow-Through Share (the
"Offering Price") for gross proceeds of $10,001,200 (the "Offering").
The Company has granted the Underwriters an option, exercisable
in whole or in part at any time up to 48 hours prior to closing of
the Offering, to arrange for the purchase of up to an additional
1,076,000 Flow-Through Shares at Offering Price. The Offering is
expected to close on or about December 15,
2021 (the "Closing Date") and is subject to the
Company receiving all necessary regulatory approvals.
The gross proceeds of the Offering will be used by the Company
to incur eligible "Canadian exploration expenses" that will qualify
as "flow-through mining expenditures" as such terms are defined in
the Income Tax Act (Canada)
(the "Qualifying Expenditures") related to the Company's PAK
Lithium Project located in Ontario,
Canada on or before December 31,
2022. All Qualifying Expenditures will be renounced in
favour of the subscribers effective December
31, 2021.
The Flow-Through Shares will be offered by way of private
placement pursuant to applicable exemptions from prospectus
requirements in each of the provinces of Alberta, British
Columbia, Ontario and in
such other jurisdictions as may be mutually agreed between the
Company and the Underwriters. The securities issues under the
Offering will be subject to a four month hold period under
applicable Canadian securities laws.
The securities to be offered pursuant to the Offering have not
been, and will not be, registered under the U.S. Securities Act of
1933, as amended (the "U.S. Securities Act") or any U.S.
state securities laws, and may not be offered or sold in
the United States or to, or for
the account or benefit of, United
States persons absent registration or any applicable
exemption from the registration requirements of the U.S. Securities
Act and applicable U.S. state securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Frontier Lithium Inc.
Frontier Lithium is a preproduction business that is targeting
to become a manufacturer of battery-quality lithium hydroxide to
support electric vehicle and battery supply chains in North America. Frontier owns 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
continues to have significant exploration upside with potential to
increase the lithium resource. It is a pure-play lithium company
with the largest land position in the Electric Avenue, a premium
lithium mineral district located in Northern Ontario.
About PAK Lithium Project
The PAK Lithium Project a tier one lithium resource in
North America and one of the
global top three premium resources by quality. A 2021 preliminary
economic assessment of a fully integrated lithium operation
utilizing spodumene concentrate generated from the PAK lithium
project resource to achieve downstream conversion for production of
battery-quality lithium chemicals resulted in an after-tax net
present value (discounted at 8 per cent) of $974-million (U.S.) with a 21-per-cent internal
rate of return. The Project encompasses 26,774 hectares at the
south end of Ontario's Electric
Avenue, the largest land package hosting premium lithium-bearing
pegmatites in Ontario. The Project
covers 65 kilometres of the Electric Avenue's length and remains
largely unexplored; however, since 2013, the company has delineated
two premium spodumene-bearing lithium deposits (PAK and Spark),
located 2.3 kilometres apart. The Project supported by a measured
and indicated resource of 10.49 million tonnes (Mt) averaging 1.78
per cent lithium oxide (Li 2 O) and inferred resource of 18.48 Mt
averaging 1.45 per cent Li 2 O. Considerable exploration
upside is supported on the PAK Lithium Project through two other
spodumene-bearing discoveries: the Bolt pegmatite (located between
the PAK and Spark deposits), as well as the Pennock pegmatite (30
kilometres northwest of PAK Deposit within the project claims).
Forward Looking Statements
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. This release includes certain statements
that may be deemed "forward-looking statements". All statements in
this release, other than statements of historical facts, that
address future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the Company
expects are forward-looking statements. Although the Company
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward looking statements
include market prices, exploitation and exploration successes,
continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned
that any such statements are not guarantees of future performance
and those actual results or developments may differ materially from
those projected in the forward-looking statements. For more
information on the Company, Investors should review the Company's
registered filings available at sedar.com.
SOURCE Frontier Lithium Inc.