/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
SUDBURY,
ON, Nov. 10, 2022 /CNW/ - Frontier
Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) (the "Company")
is pleased to announce that it has closed its previously announced
bought deal prospectus offering (the "Offering"). Pursuant to the
Offering, the Company issued 10,465,000 units (the "Units") of the
Company, including 1,365,000 Units issued in connection with the
exercise in full of the over-allotment option granted to the
Underwriters (as defined below) in connection with the Offering, at
a price of C$2.20 per Unit (the
"Offering Price"), representing total gross proceeds of
C$23,023,000.
The Offering was completed through a syndicate of underwriters
co-led by RBC Capital Markets and Goldman Sachs Canada Inc. (the
"Joint Bookrunners"), and including 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 (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 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, located in Northwestern
Ontario, as well as general administration and corporate
purposes, as further described in the Prospectus.
The Units were 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
"Prospectus"). The Units were also 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 (the "U.S.
Securities Act"), and such other jurisdictions as agreed between
the parties. The Offering remains subject to the final acceptance
of the TSXV.
The Units have not been and will not be registered under the
U.S. Securities Act or any state securities laws and may not be
offered or sold within the United
States or to, or for the account or benefit of, U.S. Persons
(as such term is defined in Regulation S under the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available. This news release does not constitute an offer to sell
or a solicitation of an offer to buy any of the Units in
the United States or to, or for
the account or benefit of, U.S. Persons.
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 "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 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 the use of proceeds of the Offering
and the receipt of final acceptance from the TSXV. 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.