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Frontier Lithium Inc V.FL

Alternate Symbol(s):  LITOF

Frontier Lithium Inc. is engaged in the acquisition, exploration and development of lithium mineral properties in Ontario, Canada. The Company is engaged in a pre-production business with a focus to be a strategic and integrated domestic supplier of spodumene concentrates for industrial users as well as battery-grade lithium hydroxide and other chemicals to the electric vehicle and energy storage markets in North America. The Company’s flagship asset, PAK Lithium Project, located about 175 kilometers (km) north of Red Lake, Ontario in the Red Lake Mining District and encompasses close to 27,000 hectares (ha). It also has two other spodumene-bearing discoveries, such as the Bolt pegmatite, which is located between the PAK and Spark deposits, as well as the Pennock pegmatite, located 25 km northwest of the PAK deposit within the project claims. Its lithium products include spodumene concentrate and lithium hydroxide monohydrate.


TSXV:FL - Post by User

Post by Margin321on Jul 13, 2022 11:35am
217 Views
Post# 34820908

Ugly stretch

Ugly stretch
FL has given back most of huge gains.  No real bad news.  Just more realization that path to production remains LONG and that FL does not have visible access to capital to make that happen, without major JV partner or sale to provate equity.  Ceryainly equity raises at low low share prices won't raise enough without massively diluting current holders.  So I guess there is time enough that proving more resource (plus maybe some infrastructure development by the province) will increase confidence enough to boost share price to a level that equity raises could solve the capital problem. But that could be quite a while.  Good thing is that they do not need more capital to finish the current drilling and better prove up the resource, which appears to be world class.  But they need a billion dollars for the mine to concentrate to chemical grade lithium pathway.  And the market cap is about 250 million.  Admittedly they do not need that billion right now.  Success of a pre-production natural resource company depends on quality and quantity of the resource and good access to capital.  First box is checked as well as I can tell and is going to be further proven by current drilling. Second box is more difficult with raising interest rates, general tightening of credit, and long lead time without revenues.  During a recession sometimes the only companies that can get a loan are those that don't need one.
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