Frontier Energy gears up to relist on ASX with fresh direction in surging clean energy sector

Formerly Superior Lake Resources, Frontier Energy (ASX: FHE) is gearing up to relist on the ASX with new leadership and a fresh direction in the burgeoning clean energy sector.

The company recently raised $8 million, which was heavily oversubscribed, via the issue of more than 61.5 million shares at $0.13 to rapidly pursue its renewable energy strategy and take advantage of increased investor interest and government targets globally to reduce reliance on fossil fuels.

Frontier’s first renewable energy focus will involve developing the Bristol Springs solar project in the “Golden Triangle” of Western Australia’s South West, bounded by the Kwinana industrial strip to the north and the Port of Bunbury and town of Collie to the south.

Frontier non-executive chairman Grant Davey says Bristol Springs’ location is “immensely important” as one of Australia’s “fastest growing regional areas”.

He noted both the population and WA Government are “extremely supportive and progressive” regarding developing future renewable energy solutions in the region.

The project will also have the advantage of “excellent supporting infrastructure” and a local, highly skilled workforce.

Large-scale solar energy system

At Bristol Springs, Frontier plans to construct a large-scale solar energy system that will initially produce 114 megawatts of direct current (MWdc) electricity.

It will incorporate the latest technology to deliver lower-cost energy into the South West Interconnected System (SWIS).

Bristol Springs is already significantly de-risked with development approval from the WA Regional Development Assessment Panel.

Meanwhile, an electricity connection application is under assessment with WA’s power administrator Western Power.

Frontier plans to boost the solar power generation up to 490MWdc through various land acquisition opportunities in the region.

As part of the project’s expansion, the company will also assess the economics of adding a battery energy storage system, wind energy, and green hydrogen production.

Other renewable energy projects

While advancing Bristol Springs, Frontier noted it would evaluate investments in other renewable energy projects to build its portfolio.

These additional investments to be considered include wind, solar and green hydrogen.

Frontier pointed out these potential projects would need to meet its investment criteria and drive shareholder value.

Zinc legacy asset

Prior to its transition to clean energy, Frontier divested its Superior Lake zinc project in Canada to Metallum Resources (TSXV: MZN).

Upon its ASX relisting, Frontier will own about 66% of Metallum – retaining exposure to the project.

Metallum describes Superior Lake as Canada’s next high-grade zinc and copper mine.

A feasibility study published in October last year on Superior Lake forecasts an average life of mine annual earnings before interest, tax, depreciation and amortisation (EBITDA) of C$95 million (A$104 million) from output of 33,400 tonnes per annum of zinc and 1,270tpa of copper over 8.5 years.

The project will be one of the lowest cost zinc producers globally amid an environment of record zinc prices and tight supplies.

Experienced team at the helm

Powering Frontier’s new direction in renewable energies is a strong leadership team.

In his non-executive chairman position, Mr Davey brings to Frontier more than 30 years’ experience in precious and base metals, uranium and bulk commodities.

His experience spans development, construction and operations throughout the world. Mr Davey was instrumental in the acquisition and development of the Panda Hill niobium project in Tanzania, the Cape Ray gold project in Newfoundland and Lotus Resources’ (ASX: LOT) acquisition of the Kayelekera uranium mine in Malawi from Paladin Energy (ASX: PDN).

Mr Davey currently serves on the boards of Cradle Resources (ASX: CXX) and Lotus.

Joining Mr Davey on Frontier’s board is Mike Young as managing director and chief executive officer.

Mr Young was most recently managing director and chief executive officer of uranium explorer Vimy Resources (ASX: VMY), where he has progressed the Mulga Rock uranium project through various exploration, feasibility and regulatory milestones over the past seven years.

Mr Young was instrumental in taking BC Iron (now BCI Minerals (ASX: BCI)) from first drill hole to first ore on ship in under four years through an innovative joint venture with Fortescue Metals Group (ASX: FMG).

In addition, he was the founding chairman of Cassini Resources, which successfully spun out subsidiary Caspin Resources (ASX: CPN) and acquired the shelved Nebo-Babel deposit from BHP (ASX: BHP) before being acquired by OZ Minerals (ASX: OZL) last year.

Frontier describes Mr Young’s experience in managing public companies as extensive, with feasibility studies delivered on time and on budget.

He also has maintained strong relationships with key stakeholders, while continuing team building, and managing joint ventures and mining operations.

Chris Bath is another executive director on Frontier’s board. He is chief financial officer of Superior Lake and will remain in the position with Frontier once it relists. Stuart McKenzie is company secretary of Superior Lake and will remain with Frontier in the same role.

Both Mr Bath and Mr McKenzie have decades’ experience in their respective fields working for numerous other public entities.

With almost 40 years’ experience behind her, award winning journalist and advertiser Dixie Marshall is sitting on Frontier’s board in a non-executive director capacity.

Ms Marshall has worked across media, advertising, politics and communications and has advanced knowledge of data and digital innovation.

She is also the first female managing director of WA’s oldest advertising agency Marketforce and worked for the WA Premier’s Office for six years as director of strategic communications.

Ms Marshall has a unique understanding of Australian Government policy and politics.

Frontier will have an indicative market capitalisation of almost $35.2 million upon its relisting and will trade under the ticker ‘FHE’.