SUDBURY,
ON, July 24, 2024 /CNW/ - Frontier
Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF)
("Frontier" or the "Company") today announced the filing of its
audited financial statements for the year ended March 31,
2024 (the "Annual Financial Statements"). The Annual Financial
Statements, related management's discussion and analysis and
management certifications have been filed on SEDAR+ and can be
viewed under the Company's profile at (www.sedarplus.ca) and
on the company's website at www.frontierlithium.com
The Company continues to advance its PAK Lithium Project and
assess the viability of constructing and operating a
fully-integrated lithium mine and chemicals processing facility to
deliver battery-grade lithium carbonate and lithium hydroxide for
the burgeoning lithium-ion battery market in North
America.
Highlights for the Year Ended March 31, 2024 and
Recent Developments
Exploration
The Company's Phase XIII drill program included four holes at
Spark, extending the deposit and delineating the Bolt pegmatite. As
of March 2024, a total of 11,364
meters were drilled across 46 holes by the Company. At the PAK
Deposit, 2,033 meters of geomechanical and hydrogeological drilling
was completed in preparation for the Company's proposed definitive
feasibility study ("DFS"). At the Bolt Pegmatite, 3,805 meters were
drilled in 15 holes, confirming an extension of over 600 meters
along strike, with widths up to 75 meters. Results from these
further drill holes indicate high-grade intersections in the
southwest and northwest lobes of the project.
Regional Mapping Program (Spark & Pennock)
The Company has completed detailed and regional mapping and has
identified a new spodumene-bearing pegmatite zone discovered near
Spark, averaging 3.1% lithium oxide (Li2O). Channel sampling
confirmed significant lithium presence, and additional detailed
prospecting, mapping, and sampling has also revealed promising
results at the Company's Pennock pegmatite area.
Pre-Feasibility Study
Strong results from the Company's pre-feasibility study ("PFS")
were announced in May 2023, with the
full technical report published and filed on SEDAR+ on July 14, 2023. The PFS confirmed the potential
for the Company to be one of the largest, lowest-cost lithium
hydroxide producer's in North
America, that may be essential for the electric vehicle
("EV") industry. The economic indicators in the PFS included a
pre-tax net present value ("NPV") of US$2.59
billion, post-tax NPV of US$1.74
billion, pre-tax internal rate of return ("IRR") of 28.6%,
and post-tax IRR of 24.1%.
Definitive Feasibility Study
On November 1, 2023, DRA Americas
Inc., a international multi-disciplinary engineering, project
delivery and operations management company, was selected by the
Company for assistance and preparation of the mine and mill portion
of the DFS. Environmental Baseline Studies are ongoing to support
project permitting and infrastructure works are being completed to
continue to support the DFS in relation to stockpiles, tailing
management, the mill, and related facilities.
Lithium Chemical Test Work Development
On November 9, 2023, a
$2 million grant from the Northern
Ontario Heritage Fund Corporation was announced. This grant will
support the construction of a small-scale facility that will focus
on developing internal reagent recycling technology
required for the sustainable commercial production of lithium
chemicals.
Mitsubishi Joint Venture Partnership
In March 2024, a joint venture
agreement between the Company and Mitsubishi Corporation was
entered into ("JV"). Under the JV, Mitsubishi acquired a 7.5%
equity interest in the Company's assets in exchange for
$25 million, with an option for
Mitsubishi, post-DFS, to increase their equity position to 25% in
the JV. This JV partnership supports the significance the PAK
Lithium Project may have to the North American EV supply chain. The
JV transaction closed in April 2024
and the Company completed the structuring and transfer of the
related mineral interests and accompanying assets to subsidiaries
of the JV at that time.
Corporate Leadership Changes
The Company strengthened the corporate leadership team with the
addition of Gregory Da Re as Vice
President of Corporate Development in June
2023, bringing extensive EV battery supply chain experience,
and in August 2023, Erick Underwood was appointed as Chief Financial
Officer of the Company. Mr. Underwood brings over 25 years of
experience to the Company in finance and project development in the
mining industry.
The Company had approximately $12
million in cash as at March 31,
2024, and this cash position does not reflect the investment
by Mitsubishi from the JV which closed in April 2024.
About Frontier Lithium
Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is a
preproduction business with an objective to become an integrated
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's sole project maintains the largest land position and
resource in a premium lithium mineral district located in
Ontario's Great Lakes
region.
About the PAK Lithium Project
The PAK lithium project contains North
America's highest-grade lithium resource and is the largest
in Ontario by size. 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 2023 Pre-Feasibility Study "National
Instrument 43-101 Technical Report PFS PAK Lithium Project" by BBA
E&C Inc., delivered a 24-year project life, delivering a
post-tax NPV(8%) of US$1.74 billion
and IRR of 24.1% as per the press release disseminated on
May 31, 2023, and was filed on SEDAR+
(www.sedarplus.ca)
Forward-looking statements
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact constitute forward-looking
statements. Forward looking statements contained in this news
release include, but are not limited to, statements with respect
to: estimated mineral resources, estimated capital costs to
construct mine facilities, estimated operating costs, the duration
of payback periods, estimated amounts of future production,
estimated cash flows, net present value, the PFS and DFS and
statements that address future production, resource and reserve
potential, exploration drilling, exploitation activities and events
or developments that the Company expects.
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 may differ materially from those expressed in the
forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. Risk factors that could cause actual results to
differ materially from those in forward looking statements include:
market prices for commodities, increases in capital or operating
costs, construction risks, availability of infrastructure including
roads, regulatory and permitting risks, exploitation and
exploration successes, continued availability of capital and
financing, financing costs, 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, please review the Company's public filings
available at www.sedarplus.ca.
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.
