12:02 PM 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.

Proceeds from the financing will be used to buy a vacant industrial site on Mission Island in Thunder Bay, Ontario for a planned lithium conversion facility.

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 lands on Feb. 28, when the loan is scheduled to close.

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

The loan is convertible into or exercisable for fully paid Frontier shares priced at $0.65 each. The principal amount of the loan will mature 18 months from the issue of the loan.

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.

Frontier shares were last seen up $0.03 to $0.64 on the TSX Venture Exchange.

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