SUDBURY, ON, July 24, 2024 /CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) ("Frontier" or the "Company") today announced the filing of its audited financial statements for the year ended March 31, 2024 (the "Annual Financial Statements"). The Annual Financial Statements, related management's discussion and analysis and management certifications have been filed on SEDAR+ and can be viewed under the Company's profile at (www.sedarplus.ca) and on the company's website at  www.frontierlithium.com

The Company continues to advance its PAK Lithium Project and assess the viability of constructing and operating a fully-integrated lithium mine and chemicals processing facility to deliver battery-grade lithium carbonate and lithium hydroxide for the burgeoning lithium-ion battery market in North America.

Highlights for the Year Ended March 31, 2024 and Recent Developments

Exploration

The Company's Phase XIII drill program included four holes at Spark, extending the deposit and delineating the Bolt pegmatite. As of March 2024, a total of 11,364 meters were drilled across 46 holes by the Company. At the PAK Deposit, 2,033 meters of geomechanical and hydrogeological drilling was completed in preparation for the Company's proposed definitive feasibility study ("DFS"). At the Bolt Pegmatite, 3,805 meters were drilled in 15 holes, confirming an extension of over 600 meters along strike, with widths up to 75 meters. Results from these further drill holes indicate high-grade intersections in the southwest and northwest lobes of the project.

Regional Mapping Program (Spark & Pennock)

The Company has completed detailed and regional mapping and has identified a new spodumene-bearing pegmatite zone discovered near Spark, averaging 3.1% lithium oxide (Li2O). Channel sampling confirmed significant lithium presence, and additional detailed prospecting, mapping, and sampling has also revealed promising results at the Company's Pennock pegmatite area.

Pre-Feasibility Study

Strong results from the Company's pre-feasibility study ("PFS") were announced in May 2023, with the full technical report published and filed on SEDAR+ on July 14, 2023. The PFS confirmed the potential for the Company to be one of the largest, lowest-cost lithium hydroxide producer's in North America, that may be essential for the electric vehicle ("EV") industry. The economic indicators in the PFS included a pre-tax net present value ("NPV") of US$2.59 billion, post-tax NPV of US$1.74 billion, pre-tax internal rate of return ("IRR") of 28.6%, and post-tax IRR of 24.1%.

Definitive Feasibility Study

On November 1, 2023, DRA Americas Inc., a international multi-disciplinary engineering, project delivery and operations management company, was selected by the Company for assistance and preparation of the mine and mill portion of the DFS. Environmental Baseline Studies are ongoing to support project permitting and infrastructure works are being completed to continue to support the DFS in relation to stockpiles, tailing management, the mill, and related facilities.

Lithium Chemical Test Work Development

On November 9, 2023, a $2 million grant from the Northern Ontario Heritage Fund Corporation was announced. This grant will support the construction of a small-scale facility that will focus on developing internal reagent recycling technology required for the sustainable commercial production of lithium chemicals.

Mitsubishi Joint Venture Partnership

In March 2024, a joint venture agreement between the Company and Mitsubishi Corporation was entered into ("JV"). Under the JV, Mitsubishi acquired a 7.5% equity interest in the Company's assets in exchange for $25 million, with an option for Mitsubishi, post-DFS, to increase their equity position to 25% in the JV. This JV partnership supports the significance the PAK Lithium Project may have to the North American EV supply chain. The JV transaction closed in April 2024 and the Company completed the structuring and transfer of the related mineral interests and accompanying assets to subsidiaries of the JV at that time.

Corporate Leadership Changes

The Company strengthened the corporate leadership team with the addition of Gregory Da Re as Vice President of Corporate Development in June 2023, bringing extensive EV battery supply chain experience, and in August 2023, Erick Underwood was appointed as Chief Financial Officer of the Company. Mr. Underwood brings over 25 years of experience to the Company in finance and project development in the mining industry.

The Company had approximately $12 million in cash as at March 31, 2024, and this cash position does not reflect the investment by Mitsubishi from the JV which closed in April 2024.

About Frontier Lithium

Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is a preproduction business with an objective to become an integrated strategic domestic supplier of spodumene concentrates for industrial users as well as battery-grade lithium hydroxide and other chemicals to the growing electric vehicle and energy storage markets in North America. The Company's sole project maintains the largest land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region. 

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 "National Instrument 43-101 Technical Report PFS PAK Lithium Project" by BBA E&C Inc., delivered a 24-year project life, delivering a post-tax NPV(8%) of US$1.74 billion and IRR of 24.1% as per the press release disseminated on May 31, 2023, and was filed on SEDAR+ (www.sedarplus.ca)

Forward-looking statements

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact constitute forward-looking statements. Forward looking statements contained in this news release include, but are not limited to, statements with respect to: estimated mineral resources, estimated capital costs to construct mine facilities, estimated operating costs, the duration of payback periods, estimated amounts of future production, estimated cash flows, net present value, the PFS and DFS and statements that address future production, resource and reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects. 

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those expressed in the forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties. Risk factors that could cause actual results to differ materially from those in forward looking statements include: market prices for commodities, increases in capital or operating costs, construction risks, availability of infrastructure including roads, regulatory and permitting risks, exploitation and exploration successes, continued availability of capital and financing, financing costs, and general economic, market or business conditions. Investors are cautioned that any such 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 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 release.