Frontier Lithium To Raise $20.0 Million Via Bought Deal
Markets might be dreary, but that evidently is not stopping capital from flowing to hot sectors. Frontier Lithium (TSXV: FL) this morning indicated it has entered into an arrangement with RBC Capital Markets and Goldman Sachs to conduct a bought deal finaning.
The financing will see the company sell a total of 9.1 million units at a price of $2.20 per each. Units are set to contain one common share and one half of a common share purchase warrant. Warrants are to be valid for a period of three years from the date of issuance, and contain an exercise price of $2.75 per each.
The raise is expected to raise gross proceeds of $20.0 million. An over-allotment option however has been granted, which could see the financing expanded to as much as $23.0 million. Proceeds from the financing are to be used for exploration and the further development of the firms PAK Lithium project in Ontario, as well as for general corporate purposes.
WATCH: Lithium Projections & Its Future In Canada
Closing of the financing is currently slated for November 8, 2022.
Frontier Lithium last traded at $2.18 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.