Mitsubishi invests $25M in Frontier Lithium’s PAK Lithium Project joint venture
by CM Staff
The investment aims to advance the first fully integrated lithium mining and processing operation in Ontario, Canada.
SUDBURY — Frontier Lithium Inc. has announced the completion of Tranche 1 of its joint venture partnership with Mitsubishi Corporation for the PAK Lithium Project.
Mitsubishi has acquired an initial 7.5 per cent interest in the project for CAD 25 million. The investment aims to advance the first fully integrated lithium mining and processing operation in Ontario, Canada.
Frontier is planning 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.
Trevor Walker, President, and CEO of Frontier Lithium, highlighted the significance of the milestone and expressed gratitude for Mitsubishi’s partnership.
“Mitsubishi’s investment underscores their trust in Ontario’s jurisdiction, as well as the calibre and scale of the PAK Lithium Project,” said Walker.
“We warmly welcome Mitsubishi and are honoured to have a strategic, and reliable partner enabling us to focus on generating long-term value for shareholders, communities, and all stakeholders.”
Key points of the joint venture include Frontier maintaining a 92.5 per cent stake in the JV and assuming the role of JV manager. Mitsubishi has the option to increase its interest up to 25 per cent following the completion of the DFS. Mitsubishi will collaborate with Frontier to secure debt financing for the Project’s production.
The completion of Tranche 2 investment is subject to certain preconditions, expected to be met in 2025.
