https://www.canadianminingjournal.com/
Frontier Lithium (TSXV: FL; OTC: LITOF) is raising $20 million with which to continue exploration of the PAK lithium project in northwestern Ontario. The bought deal is underwritten by a syndicate led by RBC Capital Markets and Goldman Sachs.
The underwriters have agreed to purchase 9.1 million units of Frontier at a price of $2.20 per unit. Each unit consists of one common share and one-half of one purchase warrant. Each full warrant will entitle the holder to purchase a common share at a price of $2.75 within a period of 36 months following the closure of the bought deal. Closing is expected on Nov. 8, 2022.
Frontier has also granted the underwriters an over-allotment option for a period of up to 30 days after closing. If all available units are taken up, the total of the fund received could be slightly over $23 million.
The PAK deposit is located 175 km north of Red Lake, Ont. Frontier produced a preliminary economic assessment in 2021. The deposit has a strike length of 500 metres and a depth of 300 metres with a true width varying between 10 metres and 125 metres. It is one of the largest and highest grade spodumene resources in North America.
For the rest of this article: https://www.canadianminingjournal.com/news/frontier-announces-20m-bought-deal-to-fund-pak-exploration/