Frontier Lithium Acquires 2.5% NSR For Pak Lithium Project
Frontier Lithium (TSXV: FL) this morning announced that it has acquired the net smelter royalty that was outstanding on its flagship PAK Lithium Project. The royalty, or NSR, was acquired via the payment of a combination of both cash and shares.
The repurchase of the royalty didn’t come cheap in terms of upfront costs, with the company effectively paying $5.0 million for the 2.5% royalty. Total consideration consisted of a cash payment of $4.0 million, as well as the issuance of 1.0 million shares at a price of $1.00.
The purchase of the NSR follows the release of a positive preliminary economic assessment for the property earlier this year. The PEA outlined a life of project revenue figure of $8.52 billion for the proposed mine to lithium hydroxide chemical/hydromet plant facility. The assessment effectively outlined a post tax net present value with an 8% discount of $974.6 million for the project, as well as an IRR of 21%.
Frontier Lithium last traded at $0.99 on the TSX Venture.
Information for this briefing was found via Sedar and Frontier Lithium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
