Frontier Lithium Inc V.FL

1274 Feet of High Grade Lithium & OPEN

[lithomon]

If this Lithium drill result continues, instead of comparing Frontier Lithium as Albemarle-like Greenbushes Lithium, it could be comparing Albemarle as a Frontier-like Lithium deposit(s).

[Margin321]

Yes but Albemarbe and Tianui lithium (chinese) through a joint venture invested a few billion and have the mine and the processing plants. They also have massive connections to world wide lithium supply chain. Currently they produce 1.95 million tons of lithium spodumene yearly and supply 1/3 of world helium supply. Obviously that supply chain has to shift some production to North America. If I

[Margin321]

Will try that again: Yes but ALBEMARLE and TIANQI Lithium (chinese) through a joint venture (Talison Lithium)  invested a few billion and have the mine and the processing plants. They also have massive connections to world wide lithium supply chain. Currently they produce 1.95 million tons of lithium spodumene yearly and supply 1/3 of world LITHIUM supply. Obviously that supply chain has to

[CanSwiss]

The strategic partner won't come in with the billion $. More likely they inject for example Cad$500 million for say 40% ownership (eg premium over current share price). That gets the ball rolling and the remaining funds are raised with new funding rounds once the $500 million is spent and the share price is much higher than today. 

[FrankCowperwood]

I guess with bankable fisibility study at USD2bln NPV8%, they will be able to finance USD700 mln project with, say, 30% equity and 70% debt. By the time mcap will be closer to NPV than today. Having such major shareholders and superior asset leaves all options on the table, including JV, whatever more accretive to all shareholders.

[qwerty22]

https://0d7460aa-48c7-4c8d-9728-2913b52b197a.usrfiles.com/ugd/0d7460_1b55a7b5962140efb79c50bb15d006fc.pdf The corporate presentation lays out a 5 year plan to get to production in 2027. It definitely seems right that funding can come over time, from multiple sources and for some of it to come from non-dilutive means. The money, just like all the physical things that need to be built with it, will

[Margin321]

June corporate presentation is excellent. Best yet. Story is great in terms of quantity and quality of resource and also the opportunity as NA lithium needs grow dramatically. And as Ontario role in EV production grows and supply chain shifts for those projects.  This is important for every FL investor as background and small part of due diligence and gives good idea of corporate aspirations.

[Feedmeinfo]

Please explain the purpose of your post .

[Margin321]

nothing nefarious. small resource companies need quantity of resource, quality of resource, ready access to capital, good location with infrastructure, good governance with favorable fiscal regime.  I try to invest in companies that are going to be successful, especially in high risk development space.  So of course I pay attention when they hire a new CFO to help facilitate the path

[Margin321]

Frank, that sounds great. Something like that could happen. Bank debt however is very problematic for pre-production and pre-revenue company. Credit has tightened and interst rates have gone up so the carrying costs on hudrends of millions of debt is very high and it will take 5 years to get to major production. They are working on this very hard. The qunatity and the quality of the resource is

[FrankCowperwood]

Let's also take into account other non-dilutive and cheaper options like offtakes, long-term agreements, ECA etc. North America is ripe for own source of Lithium. I personally think they will make raise for development at no less then $5-6 per share but with smaller dilution (like 20%) due to other financing options.

[Margin321]

I like that plan. But only way someone would pay $500 million for 40% of a $400 million dollar company would be for strategic reasons, to get control of the resource.  I could see $500 million for 60% of the company as more likely. That would jump share price and further capital could be raised at a MUCH higher share price.   There certainly is a billion dollar lithium