Under the terms of the agreement, signed on
- This strategic investment recognizes the size, high quality and strategic importance of the
Frontier's PAK Lithium Project to the North American EV supply chain; - Mitsubishi, a global conglomerate with a market cap of more than
JPY13 trillion and having a portfolio of large-scale mineral resource assets with world-class cost competitiveness and quality, makes its first step into upstream lithium production to contribute to the growing needs of the battery materials supply chain; - The JV is structured to cover the equity funding for the planned mine and mill while maintaining at least 75% of future off-take;
- This long-term partnership supports the initial development of mining at the
PAK Lithium Project , and future expansions downstream with chemical processing.
"Today marks a significant milestone for
Kota Ikenishi, General Manager of the Battery Minerals Office, Mitsubishi Corporation added: "PAK is an outstanding lithium project, and we recognize its strategic value in ensuring a secure supply of lithium to North American markets. We are excited to build a long-term relationship with Frontier and leverage our complementary skills and capabilities to deliver PAK into production."
This JV partnership delivers on the recent memorandum of co-operation signed between the governments of
The key terms of the Transaction are summarized below:
- Frontier will contribute all assets related to the Project in exchange for a 92.5% interest in the JV and will serve as the manager of the JV.
- Mitsubishi will acquire an initial 7.5% interest in the JV for C$25 million ("Tranche 1").
- Post completion of the DFS, Mitsubishi will have the right to acquire an additional 17.5% interest in the JV to a total of 25% interest at a price based on the net value of the Project as shown in the DFS.("Tranche 2").
- Mitsubishi will work closely together with Frontier in arranging project financing to ensure the Project is fully funded to production.
- Frontier will be the operator of the Project and will be responsible for the development and delivery and subsequent operation of the Project.
- A Project Development Committee will include representatives from both Frontier and Mitsubishi will be formed to review and recommend all significant project development decisions.
- Funding of Tranche 2 is subject to certain terms and conditions precedent, including receipt of material permits and other customary approvals. Frontier anticipates these conditions to be satisfied in 2025.
The agreement contains terms, conditions, representations, warranties, and indemnities customary for transactions of this nature. Closing of Tranche 1 is subject to customary closing conditions.
Frontier's financial adviser is
Frontier invites its shareholders and the financial community for an investor call on
About Mitsubishi Corporation
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This press release contains statements that constitute "forward-statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the funding of Tranche 1, the formation and operations of the JV, the timing of the satisfaction of the conditions to funding of Tranche 2, the prospectivity of the Company's mineral properties, the mineralization and development of the Company's mineral properties, the Company's exploration program and other mining projects and prospects thereof. Such statements and information reflect the current view of the Company. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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