Frontier Lithium Inc. (TSX-V: FL) (OTCQX: LITOF) (FSE: HL2) announces that it has entered into an agreement to acquire the 2.5% Net Smelter Royalty that was outstanding on the Company’s PAK Lithium Project for consideration of $4,000,000 in cash and 1,000,000 common shares of the Company at a price of $1.00 per share.
Frontier Lithium President and CEO, Trevor Walker commented, “With significant resource growth potential, underlying economic considerations and financial modelling, coupled with lithium market fundamentals and the strategic importance for high-quality critical mineral resources we consider this acquisition of the NSR as an accretive transaction for all of the Project’s stakeholders and are pleased to take advantage of the opportunity.”
The Acquisition is subject to approval by the TSX Venture Exchange (the “Exchange”) and the common shares issued herein will be subject to the Exchange hold periods and applicable securities laws.
About Frontier Lithium
Frontier Lithium is an emerging pure play lithium company with the largest land position in the Electric Avenue, an emerging premium lithium mineral district located in the Great Lakes region of northern Ontario. The company maintains 100% ownership in 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 has significant upside exploration potential. Frontier is a pre-production business that is targeting the manufacturing of battery quality lithium hydroxide in the Great Lakes Region to support electric vehicle and battery supply chains in North America. Frontier maintains a tight share structure with management ownership approximately 30% of the Company.
About the PAK Lithium Project
The PAK Lithium 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 km of the Avenue length and remains largely unexplored; however, since 2013 the company has delineated two premium spodumene bearing lithium deposits (Pak and Spark) located 2.3 km from each other. A 2021 Preliminary Economic Assessment (2021 Preliminary Economic Assessment, Fully Integrated PAK Lithium Project by BBA Engineering Ltd. report to be released by April 5, 2021) resulted in a post-tax NPV8% of USD $974M with a 21% IRR. Considerable exploration upside is supported on the PAK Lithium Project through two other spodumene bearing discoveries; Bolt pegmatite located between PAK and Spark deposits, as well as Pennock pegmatite, a further 30 km northwest of PAK within the Project claims.
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