Frontier Announces Exercise of Warrants, Options and Shares for Debt Financing for Proceeds of $943,795.50
Sudbury, Ontario, October 31, 2017 – Frontier Lithium Inc. (TSX.V: FL) (the “Company”) Frontier is pleased to announce that a total of 4,088,725 common shares have been issued as a result of combination of exercise of share purchase warrants and options since May 15, 2017 at a weighted average price of $0.23 per common share. This results in $943,795.50 of aggregate proceeds to Frontier Lithium.
Frontier is pleased to also report that it has received a positive response from creditors concerning a “Shares for Debt Financing” of $197,585.35. $104,791.66 of debt is owed to a company owned by one “non-arm’s length” individual and the balance of $92,793.69 to one arm’s length company. Frontier proposes to issue up to 493,963 common shares at a price of $.40. In addition to the common shares issued to the arm’s length party, Frontier will issue one (1) share purchase warrant (the “Warrant”) that entitles the holder thereof to purchase one additional common share of Frontier at an exercise price of $.64 for an eighteen (18) month period. The financing is subject to regulatory approval and would have a hold period of four months.
The exercise of these warrants and options represent a strong vote of confidence by our shareholder’s with support of the current phase of the PAK Lithium Project. Proceeds from the exercised warrants and options will be used to advance exploration and complete the ongoing pre-feasibility study of Frontier’s 100% owned PAK Lithium Project located in northwestern Ontario.
The Company also announces that it has granted an additional 1,966,667 stock options. The options are to replace stock options that have been exercised by management in 2016 and 2017. The options granted are set for a period of five years, expiring on October 31, 2022. The options are priced at $.40 and are subject to regulatory approval.