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.
Sponsored · Power Metallic Inc.
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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.
