FRONTIER LITHIUM AND MITSUBISHI CORPORATION COMPLETE JOINT VENTURE TRANSACTION
Through the joint venture partnership, as initially announced on
Frontier plans to utilize the funding from Mitsubishi to progress the Project towards a vertically integrated Definitive Feasibility Study (DFS), which is expected to be completed in 2025.
Transaction Details
The joint venture is structured to facilitate the majority of equity funding for the planned mine and mill, with Frontier being able to reduce its share of development costs for the whole project, while maintaining at least 75% of future off-take optionality. This partnership aligns with the recent Memorandum of Cooperation signed between the governments of
Key points of the joint venture transaction:
- Frontier has contributed all assets pertaining to the Project in exchange for a 92.5% stake in the JV and has assumed the role of JV manager.
- Following the completion of the DFS, Mitsubishi will have the option to increase its interest in the JV up to a 25% interest at a valuation based upon, among other things, the net asset value of the Project outlined in the DFS ("Tranche 2").
- Mitsubishi will collaborate closely with Frontier in securing debt financing to ensure full funding for the Project's production.
- The completion of Tranche 2 investment is contingent upon certain preconditions, such as obtaining material infrastructure permits and other customary approvals. Frontier expects these conditions to be met in 2025.
Mitsubishi Corporation is a global integrated business enterprise that develops and operates businesses together with its global network of around 1,800 group companies. Mitsubishi has eight Business Groups that operate across virtually every industry: Environmental Energy, Materials Solution, Mineral Resources,
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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