SUDBURY,
ON, Nov. 29, 2022 /CNW/ - Frontier Lithium
Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) ("Frontier" or the
"Company") has reported financial results for the three and six
months ended September 30, 2022.
The financial statements and the related management's discussion
and analysis have been filed on SEDAR and can be viewed under the
company's profile on SEDAR.
Highlights for the quarter ended September 30, 2022 and recent developments:
- On July 25, 2022, the Company
announced the results for four of the drill holes completed during
the Phase XII drill program on the Spark pegmatite deposit.
Subsequently on August 17,
September 20, October 11, and November
16 of 2022, the Company announced the results for seventeen
additional drill holes and one channel, completed during the Phase
XII drill program on the Spark pegmatite deposit. The detailed
results from this drilling have been released by the Company and
are available on SEDAR (www.sedar.com). As of November 16, 2022, the Company has completed
14,641.1 metres of drilling in 45 holes and has reported analysis
from 21 drill holes. The initial objective for the Phase XII drill
program was focused on converting the inferred resource within the
Spark deposit to the indicated category in preparation for a
Pre-Feasibility Study on the PAK Lithium Project. The latter half
of the program included geotechnical drilling for ground control
and pit design purposes as well as step out drilling to define the
eastern and western extents of the ore body.
- On October 11, 2022, the Company
announced that it has elected to introduce a phased approach in the
PFS currently being prepared by the Company through the advancement
of a mine and mill development to initially produce premium
spodumene concentrates in Phase 1. The Phase 2 plan would increase
mine and mill production to feed a downstream refinery to produce
lithium chemicals for the energy storage and electric vehicle
battery market.
- Due to the proposed phase approach abovementioned and delays on
receiving the assay results from the recent Phase XII drill
program, the Company anticipates that the PFS will be completed in
Spring of 2023.
- On November 10, 2022, the Company
closed a bought deal prospectus offering and issued 10,465,000
units of the Company, including 1,365,000 units issued to
underwriters for over-allotment option at a price of $2.20 per unit, representing total gross proceeds
of $23.0 million (the
"Offering").
The Offering was completed through a syndicate of underwriters
co-led by RBC Capital Markets and Goldman Sachs Canada Inc. (the
"Joint Bookrunners"), and included BMO Nesbitt Burns Inc.,
Canaccord Genuity Corp., Cormark Securities Inc. and Stifel
Nicolaus Canada Inc. (collectively with the Joint Bookrunners, the
"Underwriters"). The Underwriters received a cash commission equal
to 5.5% of the gross proceeds of the Offering.
Each Unit consists of one common share of the Company and
one-half of one common share purchase warrant of the Company
totaling to 10,465,000 common shares and 5,232,500 warrants. Each
warrant entitles the holder thereof to purchase one common share of
the Company at a price of C$2.75 for
a period of 36 months following the closing of the Offering.
The net proceeds of the Offering will be used by the Company to
fund exploration and development activities at the PAK Lithium
Project for work related to delivery of a potential definitive
feasibility study, as well as general administration and corporate
purposes.
The comparative figures for the three and six months ended
September 30, 2021 have been
restated. The restated comparative figures replace and supersede
the corresponding information contained in the previously filed
financial statements and management discussion and analysis of the
Company which should no longer be relied upon.
For further information regarding the restatement of the
comparative figures contained in the September 30, 2022 Unaudited Condensed Interim
Financial Statements, please refer to the details in Note 13 of the
quarter ended September 30, 2022
Unaudited Condensed Interim Financial Statements which are
summarized as follows:
- Change in accounting policy
During the year ended
March 31, 2022, the Company changed
its accounting policy for exploration and evaluation expenditures
to expense them as incurred. Management considered that this change
in accounting policy will result in clearer, more relevant and
reliable financial information by reducing financial reporting
complexity. Under the previous accounting policy, exploration and
evaluation expenditures were capitalized.
- Related Party Disclosures
It was determined that
there were additional related party transactions in the prior year
financial statements that had not been disclosed. The comparative
disclosures in Note 11 have been revised accordingly.
- Prior period adjustment
In the process of preparing
the Company's unaudited condensed interim financial statements for
the three months and six months ended September 30, 2022, management determined that
there were clerical adjustments that needed to be made for the
comparative period three and six months ended September 30, 2021.
About Frontier Lithium Inc.
Frontier Lithium is a preproduction business with an objective
to become a strategic domestic supplier of spodumene concentrates
for industrial users as well as battery-grade lithium hydroxide and
other chemicals to the growing electric vehicle and energy storage
markets in North America. The
Company maintains the largest land position and resource in a
premium lithium mineral district located in Ontario's Great Lakes region.
About PAK Lithium project
The PAK lithium project contains one of North America's highest-grade lithium
resources. The project encompasses close to 27,000 hectares 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 continuing 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). A 2021 preliminary economic
assessment (National Instrument 43-101 technical report titled "NI
43-101 Technical Report, Pak Property, PAK, Red Lake Mining
District, Ontario, Canada" by BBA
E&C Inc., with an effective date of April 5, 2021) delivered a fully integrated
lithium operation, including the mine and mill and the conversion
plant for production of battery-quality lithium salts.
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.