Frontier Lithium initiates Fully Integrated North American Lithium Project Preliminary Economic Assessment (PEA) to Produce Lithium Hydroxide from the PAK Lithium Project
Sudbury, Ontario, September 9, 2020 – Frontier Lithium Inc. (TSX.V: FL) (the “Company” or “Frontier”) is pleased to announce that it has commenced a Preliminary Economic Assessment Study (“PEA”) of vertically integrated operations to produce lithium hydroxide chemicals from the PAK Lithium Project (the “Project”). This study will demonstrate the Project’s full potential by leveraging its high quality, low impurity resource to produce premium spodumene concentrates and to introduce Frontier as a future fully-integrated, lithium hydroxide supplier to the emerging electric vehicle and lithium battery market. Frontier has engaged WSP Canada Inc. (TSX:WSP) to work closely with the Company and its technology partner XPS Expert Process Solutions (“XPS”), a Glencore company, in leading the PEA. WSP is one of the largest engineering firms in Canada and has a mining division maintaining independent consulting geologists and engineers. Frontier is targeting completion of the PEA in this calendar year 2020.
Trevor Walker, President and CEO commented, “The recent increase in the Project resource size and strong metallurgical results coupled with encouraging progress on current bench-scale lithium chemicals test work should provide the basis for a positive PEA outcome. The PEA will include a vertically integrated spodumene mining, milling and downstream lithium hydroxide production facility. The decision to pursue the vertically integrated model is being driven by strong lithium demand outlook, growing need for higher quality battery raw materials and very encouraging hydrometallurgical progress with ongoing evaluation test work. The PEA (under NI 43-101 standards) will build on the foundation set by our rare ability to produce high quality Technical grade spodumene concentrate and will highlight the potential of a vertically integrated operation in the Great Lakes region of Northern Ontario.”
Frontier also announces that certain insiders and consultants (the “Optionees”) of the Company have agreed to cancel an aggregate of 8,050,000 stock options held by optionees. Upon cancellation, the Company will have 2,816,666 stock options outstanding under the Plan, of which there are 500,000 stock options exercisable at a price of $0.24 per common share expiring on April 28, 2021 and 2,316,666 stock options exercisable at a price of $0.30 per common share expiring on November 11, 2024.