07:00 AM EST, 02/26/2025 (MT Newswires) -- Frontier Lithium ( LITOF ) late on Tuesday said it signed an agreement for an unsecured convertible loan for around $3.4 million.

Net proceeds from the financing will be used to buy a vacant industrial site on Mission Island in Thunder Bay, Ontario whereba lithium conversion facility will be built.

The Mission Island lands are composed of 183 acres. Frontier expects to exercise an option to purchase the Mission Island lands, which it has held since June 2023.

The company expects to seal the agreement to buy the Mission Island lands on Feb. 28.

Thunder Bay, Ontario is the closest major city to the company's PAK lithium deposit in northwestern Ontario.

The loan is convertible into or exercisable for fully paid Frontier common shares. The principal amount of the loan will mature and become due and payable in cash 18 months from the date of issue of the convertible loan.

The principal amount may be converted for no additional consideration into conversion shares at the option of the lender at any time after the issue date at a conversion price of $0.65 per share.

The financing is expected to close on Feb. 28 and is subject to TSX Venture Exchange approval.

Additionally, the company reported a fiscal third-quarter net loss and comprehensive loss of $2.8 million, or $0.01 per share, narrowing from a loss of $4.5 million, or $0.05 per share.