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Frontier Lithium Inc V.FL

Alternate Symbol(s):  LITOF

"Frontier Lithium Inc is a Canada-based mining exploration company engaged in acquisition, exploration, and development of mining properties. It focuses on elements like lithium, tantalum, rubidium, and cesium by exploring for lithium, cesium and tantalum classified pegmatites. Geographically it operates in one segment, Canada. Its main project is the PAK lithium project."


TSXV:FL - Post by User

Post by ridethewinnerson Mar 05, 2024 9:45am
130 Views
Post# 35915460

re dilution and trading

re dilution and tradingA great deal, without any "buts" in the sentence, at least as far as we know now. A significant premium to market, a great partner. Damn well done.
Yes, it is 25% dilution as FL now only owns 75 % of the deposit and downstream operations, but that is far less dilution than I was expecting. 

AS to the trading, it is not surprising this leaked a little early, I am sure both levels of government had to be at least apprised of the deal ahead of time, and Mits. might have wanted direct contact there, as well as various other players, lawyers, investment bankers etc. It is very hard to keep a deal this size hidden to the end 

Mitsubishi should be a great help in the final credit facility, as they would be a borrower of the highest rating, and have experience and a banking group willing to step in and do this deal. Relative to what else they do, this is in the easy category. 

It is subject to the usual native agreements, environmental etc., Some concern there.. The best of this is that Mits., will use far more lithium than Fl can produce, with the size and range of their operations, so they will want this production online quickly. This is a far better partner than a domestic OEM. 

Some more clarity would have been better, and I hope we get that through research reports.
Best of luck
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