Frontier Lithium raising $15 million for Ontario project
Frontier Lithium Inc. [FL-TSXV, LITOF-OTCQX, HL2-FRA] is raising $15 million from a bought deal prospectus offering and will use the proceeds to advance its PAK Lithium project near Red Lake Ontario.
The company said these funds will support the completion of an updated mine and mill technical report, facilitate activities related to government-funded or cost-shared infrastructure initiatives, advancement of a lithium conversion study and cover other administrative expenses.
The company said an underwriting syndicate has agreed to purchase 20 million units on a bought deal basis, priced at 75 cents per unit. The offering is expected to close by April 22, 2026, subject to regulatory approvals.
Each unit will consist of one common share and one half of a common share purchase warrant. Each warrant will entitle the holder to acquire one common share for $1.00 per warrant share for two years after closing.
The underwriters have been granted the option to purchase up to an additional 15% of the offering to cover over-allotments. That option can be exercised for 30 days following closing.
Frontier shares were active on the news, easing 12.9% or $0.075 to 50.5 cents. The shares trade in a 52-week range of 84.4 cents and 33 cents.
Back in May 2025, Frontier announced the results of its Definitive Feasibility Study for the mine and mill segment of its PAK Lithium project.
The study confirmed that the project can generate an estimated $11 billion in net revenue over a 31-year mine life, with an after-tax net present value (NPV) of $932 milliion, an Internal Rate of Return (IRR) of 17.9%, and average annual pre-tax earnings of $285 million in steady-state operations.
The feasibility study envisages average annual SC6 (spodumene concentrate) production of 200,000 tonnes at an all-in-sustaining cost of US$456 per tonne. The production of spodumene concentrate is a critical step in lithium extraction, particularly for battery production. SC6 is a high-purity lithium ore that is used to produce lithium hydroxide, a key material for battery production.
PAK is a joint venture held 92.5% by Frontier Lithium and 7.5% by Mitsubishi Corp.
The company has identified three high-quality spodumene-bearing deposits –PAK, Spark, and Bolt – located within three kilometres of each other.
Proven and probable reserves stand at 31.1 million tonnes at 1.15% Li20 – a 37% increase over the company’s pre-feasibility study published in 2023. Maiden inferred reserves at the Bolt deposit stand at 5.5 million tonnes at 1.23% Li20.
Frontier Lithium is a preproduction business. Its aim is to become a strategic domestic supplier of spodumene concentrates, as well as battery-grade lithium salts to the growing electric vehicle and energy storage markets in North America.
The company has said its PAK Lithium development project is one of the highest quality known lithium mineral resources in North America.