FRONTIER LITHIUM ANNOUNCES FILING OF THIRD QUARTER FINANCIAL STATEMENTS AND MD&A
SUDBURY, ON, Feb. 22, 2024 /CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) ("Frontier" or the "Company") has reported financial results for the third quarter ended December 31, 2023. The financial statements and accompanying management's discussion and analysis for the period ended December 31, 2023 have been filed on SEDAR+ (www.sedarplus.ca) and can be viewed under the company's website or its profile on SEDAR+.
Q3 2023 Highlights:
- Strong financial position with a cash balance of approximately $15.5 million
- Received $2 million government funding via a grant from the Northern Ontario Heritage Fund Corporation to advance lithium chemicals research.
- Awarded contract to commence and complete a Definitive Feasibility Study (Phase I) that will advance development of the mine and mill at the PAK Project
- Exploration drilling further extended and proved the potential of the Bolt pegmatite, Pennock dyke and Spark deposit.
"We remain in a strong financial position to further explore and develop our PAK Project, a high-grade, large tonnage and pure lithium resource strategically located in Northwestern Ontario. 2024 will be focused on phase one (mine and mill) of our Definitive Feasibility Study, advancing environmental baseline studies while communicating with First Nations communities and advancing project permitting and mine and mill engineering design support work. While markets can be turbulent, we have a long-term strategy to bring the PAK Project into production. The downstream market is there – EV sales have recently grown 31% year-over-year; EV battery demand accounted for over 70% of total battery demand globally; and battery energy storage became the fastest growing battery market, increasing 80% over the course of 2023. These numbers only underscore the need for battery materials like lithium to be locally and responsibly sourced in North America." comments Trevor Walker, President and CEO of Frontier Lithium.
Recent Developments and Highlights for the Current Quarter:
Exploration:
- Phase XIII drill program:
- The drill program, which commenced in February 2023, has yielded promising results, delineating the Bolt pegmatite and extending the Spark deposit.
- In September 2023, results from 4 holes drilled on the western portion of Spark were released indicating the southwest and northwest lobes remain open with high-grade intersections.
- Pennock:
- In December 2023, the Company announced results from three channels cut in 2023 across the Pennock dyke approximately 700 meters to the east of the main blow-out area.
- Although narrow, these intercepts of spodumene-bearing pegmatite substantially upgrade the potential at Pennock.
Development:
- Definitive Feasibility Study:
- In November 2023, the Company awarded the mine and mill portion of the Definitive Feasibility Study ("DFS") to DRA Americas Inc., which continues to advance the project toward development.
- The DFS will capture the development and financial metrics for an integrated project, positioning Frontier as a potential producer of lithium products in the future.
- The DFS may also indicate the potential for Frontier to become a large and low-cost producer of lithium hydroxide in North America.
Financial Performance: Frontier maintains a strong financial position with a cash balance of approximately $15.5 million as of December 31, 2023. The Company remains vigilant in managing its capital to support exploration and development activities. Capital management objectives focus on ensuring operational continuity and monitoring liquidity risk. As announced on November 9, 2023, Frontier also received a $2 million government grant from the Northern Ontario Heritage Fund Corporation to advance testing processes for converting lithium processing by-products into value added products.
Outlook: Frontier remains committed to its phased development approach outlined in its Pre-Feasibility Study ("PFS") and advanced through the DFS. The Company's focus on becoming a strategic supplier of premium lithium products aligns with the growing demand in electric vehicle and energy storage markets. The ongoing DFS will provide detailed insights into the project's next stages.
Frontier Lithium looks forward to advancing its position as a key player in the lithium sector, contributing to the sustainable growth of North America's electric vehicle and energy storage industries.
For further details, please review the financial statements and the management's discussion and analysis for the nine months ended December 31, 2023, available and filed on SEDAR+ (www.sedarplus.ca).
About Frontier Lithium
Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is an exploration and development mining company with headquarters and assets in Northern Ontario, a tier-one mining jurisdiction. The Company's PAK Project represents the largest proven land position in a new, premium lithium mineral district, with a high-grade, large tonnage and pure lithium resource. Strategically located in Ontario's Great Lakes region near the United States Border, Frontier is developing the first fully integrated lithium mining-and-processing operation in Ontario with an aim is to become a significant supplier of spodumene concentrates and battery-grade lithium hydroxide to the growing electric vehicle and energy storage markets across North America.
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 titled ""National Instrument 43-101 Technical Report PFS PAK Lithium Project"" authored by BBA E&C Inc., delivered a 24- year project life, at a post-tax NPV(8%) of US$1.74 billion and internal rate of return of 24.1% as per the press release disseminated on May 31, 2023 , and was filed on www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the prospectivity of the Company's mineral properties, the mineralization and development of the Company's mineral properties, the Company's exploration program and other mining projects and prospects thereof. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Readers are cautioned that any such forward-looking 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 on SEDAR+ 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 news release.
SOURCE Frontier Lithium Inc.
Company Contact Information: Bora Ugurgel, Senior Manager, Investor Relations, 2736 Belisle Drive Val Caron, ON. P3N 1B3 CANADA, T. +001 705.897.7622, F. +001 705.897.7618
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