/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
SUDBURY,
ON, Oct. 19, 2022 /CNW/ - Frontier
Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) (the "Company")
has today entered into an agreement with a syndicate of
underwriters co-led by RBC Capital Markets & Goldman Sachs
& Co., LLC (the "Underwriters") pursuant to which the
Underwriters have agreed to purchase, on a "bought deal" basis,
9,100,000 units of the Company (the "Units") at a price of
C$2.20 per Unit (the "Offering
Price"), representing total gross proceeds of approximately
C$20 million (the "Offering").
Each Unit shall consist of one common share of the Company (a
"Common Share") and one-half of one common share purchase warrant
of the Company (each whole common share purchase warrant, a
"Warrant"). Each Warrant will entitle the holder thereof to
purchase one common share of the Company (a "Warrant Share") at a
price of $2.75 for a period of 36
months following the closing of the Offering.
In addition, the Company has granted the Underwriters an option
(the "Underwriters' Option"), exercisable in whole or in part, for
a period of up to 30 days after the closing date of the Offering,
to purchase up to 1,365,000 additional Units at the Offering Price.
In the event that the Underwriters' Option is exercised in its
entirety, the aggregate gross proceeds of the Offering will be
C$23,023,000.
The net proceeds of the Offering will be used by the Company to
fund exploration and development activities at the PAK Lithium
development project, located in Northwestern Ontario, as well as general
administration and corporate purposes.
The Units will be offered by way of short form prospectus in all
of the provinces of Canada (except
Quebec) pursuant to National
Instrument 44-101 – Short Form Prospectus Distributions. The
Units may also be offered in the United
States on a private placement basis pursuant to an exemption
from the registration requirements of the United States Securities
Act of 1933, as amended, and such other jurisdictions as agreed
between the parties.
Closing is expected to occur on or about November 8, 2022 and is subject to regulatory
approval including that of the TSX Venture Exchange and the
applicable securities regulatory authorities. 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 Units in any state
in which such offer, solicitation or sale would be unlawful. The
Units have not been registered under the United States Securities
Act of 1933, as amended, and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements.
About Frontier Lithium
Frontier Lithium is a
preproduction business that is targeting to become a manufacturer
of battery-quality lithium materials to support electric vehicle
and battery supply chains in North
America. Frontier is developing 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. The Company is a pure-play lithium
development opportunity with the largest land position in a premium
lithium mineral district located in Northern Ontario.
About the PAK Lithium Project
The PAK Lithium Project
contains one of North America's
highest grade lithium resource. A 2021 preliminary economic
assessment (National Instrument 43-101 technical report titled "Pak
Property" by BBA E&C Inc., issued on April 5, 2021) delivered a fully integrated
lithium operation from the resource to achieve downstream
conversion plan for production of battery-quality lithium salts.
The Project encompasses close to 27,000 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. Exploration is ongoing on the Project through
two other spodumene-bearing discoveries: the Bolt pegmatite
(located between the PAK and Spark deposits), as well as the
Pennock pegmatite (25 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 are forward-looking
statements. Examples of certain forward looking statements
relate to closing of the Offering, use of proceeds of the Offering
and the receipt of all necessary approvals. 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 www.sedar.com.
SOURCE Frontier Lithium Inc.