Mitsubishi Company: Participation in PAK Lithium Undertaking in Canada

Mitsubishi Company (“MC”) is happy to announce that it has entered right into a binding settlement with Frontier Lithium Inc. (“Frontier”), a Canadian lithium mining firm, to type a brand new three way partnership firm (“JV”) devoted to creating the PAK Lithium Undertaking (“Undertaking”) positioned in Ontario, Canada. MC will purchase a 7.5% fairness curiosity within the JV in alternate for money issues of 25 million CAD (“Strategic Funding”). MC additionally obtains the precise to extend its fairness share to 25%.

Because the first drill program that indicated vital lithium potential in 2013, Frontier has continued to conduct exploration actions to extend its useful resource steadily, and in consequence, the Undertaking is predicted to have a mine lifetime of over 20 years, with annual manufacturing of roughly 20Kt of lithium carbonate equal (equating to virtually 300K electrical autos).

MC has selected this Strategic Funding as its first ever funding in a lithium mine with the view that the Undertaking boasts among the many largest and the very best grade lithium assets in North America. Additionally, Ontario is an lively mining jurisdiction that has ample hydroelectric energy, enabling the Undertaking to serve the North American electrical autos market whereas minimizing environmental affect. Moreover, future drilling packages within the considerably giant land place that Frontier owns could result in unveiling additional useful resource potential.

The proceeds from the Strategic Funding will probably be primarily used to finish the feasibility research of the Undertaking and to arrange for acquiring permits required previous to the graduation of development.

MC will contribute to the event of the Undertaking by sharing the intensive information and experience within the mining enterprise that it has gathered over the previous a long time. The Undertaking goals to start manufacturing of premium spodumene concentrates by 2027 and the manufacturing of battery grade chemical substances by 2030.

Lithium is crucial for electrification and de-carbonization, as it’s a vital uncooked materials utilized in manufacturing lithium-ion batteries for electrical autos. Whereas mid-to-long-term demand for lithium is predicted to develop strongly with the sturdy demand development for batteries, there are fears that offer development could not have the ability to sustain with such demand. MC believes that the Undertaking can play an essential function in addressing these supply-side issues.

Within the “Midterm Company Technique 2024 – Creating MC Shared Worth” launched in Could 2022, MC outlined its development technique of accelerating vitality transformation, together with funding in lithium assets. Past this Strategic Funding, MC stays dedicated to additional securing a secure and sustainable provide of battery minerals.

■ Transaction Scheme

■ Overview of Frontier Lithium Inc

■ Overview of PAK Lithium Undertaking *

SOURCE: Mitsubishi Company