Frontier Lithium Inc. - LITOF stock

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OTC Symbol: LITOF | OTC Tier: OTCQX International

About Frontier Lithium

Frontier Lithium Inc (OTC: LITOF, TSXV: FL), formerly known as Houston Lake Mining Inc (HLM), is a Canadian mining and exploration company that buys, explores, and develops mining sites. Frontier Lithium specializes in hard rock and high-grade metal resources. It has a land position in Electric Avenue, Ontario's rapidly growing premium lithium-metal area, which is located in the Canadian Shield of northwestern Ontario. PAK Lithium Project, Spark Deposit, Bolt Pegmatite, and Pennock Pegmatite are some of the company's most renowned ongoing projects.

The company was incorporated in 1995 and is headquartered in Val Caron. It was originally known as Houston Lake Mining Inc. before changing its name to Frontier Lithium Inc. in May 2016. Frontier Lithium Inc. engages in the acquisition, exploration, and development of mining properties in Canada. Frontier Lithium Inc. had its trade debut in OTCQX on March 19, 2021.

Operations

Given the massive demand for lithium for the production of electric car batteries, Frontier's objective is to develop the lithium deposits in Ontario, Canada, into a low-cost, fully integrated lithium and tantalum production facility. Frontier has a very tight share structure, with management owning more than 30% of the company. From 2013 to 2016, $4 million was spent on prospecting on the deposit, which contains lithium in a rare, high-purity, low-iron spodumene. The company has taken a tiered growth approach to exploration and development. The ceramic/glass sector is the first target market, as it utilizes nearly one-third of the global lithium supply and is now subject to monopolistic conditions, with large lithium producers progressively shifting output toward battery manufacturing.

Frontier Lithium is determined to build a fully-integrated lithium chemicals company and become a strategic basic supplier. It aims to produce the best battery-grade lithium hydroxide and lithium salts to satisfy the constantly surging demand in electric vehicle and energy storage markets in North America. It also targets the top-quality glass manufacturer market for the distribution of premium mineral concentrates.

Projects

The company primarily focuses on the development of its 100%-owned PAK Lithium Project in Ontario. PAK covers 1,378 contiguous mining claim units summing up to approximately 26,774 hectares along 65 kilometers of Ontario’s Electric Avenue. Frontier Lithium has delineated spodumene-bearing lithium deposits like PAK and Spark and identified two other spodumene-bearing discoveries; Bolt pegmatite and Pennock pegmatite. The company also produces battery-grade lithium hydroxide and other chemicals for the growing electric vehicle and energy storage markets in North America as well as premium mineral concentrates supplier for glass manufacturers.

Frontier's exploration plans primarily consist of infill and step-out drilling on the Spark deposit, as well as thorough and regional mapping and prospecting in regions near known spodumene-bearing pegmatite deposits and in under-explored areas within their 27,000 block. Phase XI drilling at the Spark deposit was completed in March 2022, with a total of 1,343m drilled in five holes. All samples are being processed right now, with results expected soon.

Mitsubishi Partnership

Frontier Lithium has partnered with Mitsubishi Corporation in forming a joint venture company to develop the PAK Lithium Project in Ontario, Canada. Mitsubishi paid C$25,000,000 for a 7.5% stake in the venture, and hoped to increase that stake to 25%. This is Mitsubishi's first lithium mine project.

Results

On October 19, 2021, Frontier Lithium announced the successful production of battery-quality lithium hydroxide monohydrate (LiOH-H2O) through a reputable third-party firm using its crystallization process technology from a purified lithium hydroxide (LiOH) solution produced by Frontier Lithium.

On February 1, 2022, LITOF made public results from two of five drill holes drilled during The Phase X drill program on the Spark pegmatite, capturing the following:

• Hole PL-053-19, collared in pegmatite intersected predominately pegmatite from the surface to 329.4m with 322.5m averaging 1.6% Li₂O
• Geomechanical Drill Hole (“DDH”) PL-GDH-08-21 collared in pegmatite and intersected 94.5 m (1 to 95.5 m) of pegmatite averaging 1.7% Li₂O, and that
• 3 DDH results outstanding, dissemination of results expected in the coming weeks.

On March 1, the company reported an updated mineral resource estimate for the Spark deposit. Spark Pegmatite produced 14 million tonnes of indicated resource, averaging 1.40% Li₂O, and 18 million tonnes of inferred averaging 1.37% Li₂O.

Funding

Frontier Lithium went through several funding rounds and has raised over $14.4M. Their latest funding was raised on Dec 15, 2021, from a Post-IPO Equity round. Frontier also has several leading investors, including BMO Capital Markets and Canaccord Genuity Group, who have combinedly invested over $24M in the company.