Frontier Lithium Closes $1 million with First Tranche of Flow-Through Financing and announces over-subscription
Sudbury, Ontario, May 15 , 2019 – Frontier Lithium Inc. (TSX.V: FL) (the “Company”) is announcing that it has received interest above the previously announced $1,500,000, and accordingly intends to increase the amount to be raised under its non-brokered private placement offering to $2,000,000, subject to TSXV approval. All other terms of the offering remain as set out in the Company’s April 29, 2019 news release. The company also closed its first tranche of the non-brokered private placement for a total of $1,000,000 of flow-through funding.
The company now proposes to issue 5,000,000 units (“FT Unit”) at a price of $0.40 each. Each FT Unit will consist of one common share in the capital stock of Frontier (“Common Share”) issued on a flow-through basis and a ½ Common Share purchase warrant (“FT Warrant”). Each full FT Warrant will entitle the holder purchase one Common Share a price of $0.50 per Common Share until the date which is 24 months following the closing date of the Offering, whereupon the FT Warrants expire. The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period.
Frontier Lithium reserves the opportunity to grant to eligible persons a finder’s fee of a maximum 6% of the gross proceeds of the Offering and finder warrants of a maximum of 6% of the total number of Units sold under the Offering. Each finder warrant will be exercisable at an exercise price of $0.50 CDN into one common share for a period of 24 months from the date of issuance.
All of the Shares and Warrants issued pursuant to the private placement are subject to a minimum 4-month and one day statutory hold period. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (“TSX-V”) and applicable securities regulatory authorities. Proceeds from the financing will be used to advance exploration of Frontier’s 100% owned PAK Lithium Project located in northwestern Ontario.
The company announces that it entered into an employment contract with Bora Ugurgel effective November 1, 2018. Mr. Ugurgel will lead the investor relations and communication activities for Frontier and serve as the point of contact for investor engagement to the financial community and with current and potential shareholders.
Under the terms of the employment, Frontier granted Mr. Ugurgel an option to purchase 500,000 common shares at an exercise price of $0.40 per share under the terms of the stock option plan of Frontier, for a period of five (5) years from the date of grant. The options were disclosed on November 7, 2018 press release.