Nemaska Lithium Inc. (the “
Corporation”) (TSX:
NMX) (OTCQX: NMKEF) (Frankfurt: N0T) today provides an update on
the deployment of the overall Whabouchi project.
“The past couple of weeks have allowed us to
develop an action plan to enable a more efficient and prudent
pursuit of our activities. Realistic, yet difficult decisions had
to be made to increase control over our operations until additional
financing is completed or other strategic alternatives are
achieved. We do believe that we have the right partners to reach
our goals, and our team is fully committed to the endeavour. Our
eyes remain set on the ultimate goal of bringing this world-class
project to commercial production,” said Guy Bourassa, President and
CEO of Nemaska Lithium.
Strategic Financing Action
Plan
Clarksons Platou Securities and National Bank
Financial have been mandated by the Corporation to lead a
dual-track financing action plan. This plan is resulting from the
analysis of equity raise and M&A opportunities to carry the
project through the production stage at the mine and the
electrochemical plant. This initiative is part of the review of
strategic alternatives available to the Corporation which is
currently underway with the assistance of the Special Committee
comprised of independent members of the Board of Directors.
A New Pace for Construction
Activities
In parallel with the financing action plan, the
Corporation will be optimizing the use of cash on hand over the
coming months. Important decisions have therefore been made. The
Whabouchi mine construction pace will be adapted to start
production in a timely fashion. As we await the arrival of the mine
equipment fleet over the next few weeks, our mine management team
is fully dedicated to site and pre-production activities.
Concerning the Shawinigan commercial plant, detailed engineering
continues as planned, while construction will be put on hold to
resume once the additional financing is completed. Increasing the
level of detailed engineering will normally contribute to reducing
construction and commissioning risks for the commercial plant, in
addition to bringing more certainty in the bidding process.
Changes in the Construction
Team
Robert Beaulieu, Vice-President, Operations, is
taking the helm of construction activities for both the Whabouchi
mine and the Shawinigan electrochemical plant. He will be supported
by Ronald Bougie, who is joining Nemaska Lithium today as Vice
President, Engineering and Construction. Several other changes are
being implemented to strenghten controls over management of the
construction work, notably as regards the centralization of
procurement and purchasing.
The Phase 1 Plant Continues to Impress
Globally Production of lithium salts and process
enhancement for the commercial phase continue out of the Shawinigan
demonstration plant. Lithium hydroxide deliveries to Johnson
Matthey are ongoing, as more potential clients have requested
lithium hydroxide monohydrate samples internationally. Thanks to
the sustained and dedicated work of our production team, the
outstanding quality of those samples has already been praised by
high-profile end-users.
Conference Call
Nemaska Lithium will host a conference call
today at 11 am EST. The Corporation’s President and CEO, Mr. Guy
Bourassa, will discuss this morning’s announcement. The call can be
accessed at the following:
Online:
https://edge.media-server.com/m6/p/i44237jv
Dial information: US/CANADA Participant
Toll-Free Dial-In Number: (866) 353-6129US/CANADA
Participant International Dial-In Number: +1 (409)
217-8084Conference ID: 6429639
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical
company whose activities will be vertically integrated, from
spodumene mining to the commercialization of high-purity lithium
hydroxide and lithium carbonate. These lithium salts are mainly
destined for the fast-growing lithium-ion battery market, which is
driven by the increasing demand for electric vehicles and energy
storage worldwide. With its products and processes, the Corporation
intends to facilitate access to green energy, for the benefit of
humanity.
The Corporation will be operating the Whabouchi
mine in Québec, Canada, one of the richest lithium spodumene
deposits in the world, both in volume and grade. The spodumene
concentrate produced at the Whabouchi mine will be processed at the
Shawinigan plant using a unique membrane electrolysis process for
which the Corporation holds several patents.
The Corporation is a member of the S&P/TSX
SmallCap Index, S&P/TSX Global Mining Index, S&P/TSX Global
Base Metals Index, S&P/TSX Equal Weight Global Base Metals
Index, and the MSCI Canada Small Cap Index. For more information,
visit www.nemaskalithium.com or twitter.com/Nemaska Lithium.
Cautionary Statement on Forward-Looking
Information
All statements, other than statements of
historical fact, contained in this press release including, but not
limited to, those relating to preserve cash on hand, obtaining the
additional capital required to enable the Corporation to complete
construction, the estimated additional costs for completing the
construction of the Whabouchi mine and the Shawinigan plant, the
ability to meet funding and other conditions under the streaming
agreement and the senior secured bonds, the expected unfolding of
construction and commissioning as well as the anticipated start of
production at the Whabouchi mine and Shawinigan plant sites,
constitute “forward-looking information” and “forward-looking
statements” within the meaning of certain securities laws and are
based on expectations and projections as of the date of this press
release. Certain important assumptions by the Corporation in making
forward-looking statements include, but are not limited to, the
obtaining of the additional capital required to fulfill the
conditions precedent to receive the remaining proceeds from the
project financing being the second tranche payment under the
Streaming facility and the Bonds offering proceeds.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
ability of the Corporation to secure additional funds, including
the ability of the Corporation to implement funding solutions to
meet the revised budget and deliver the project according to the
schedule, (ii) construction advancing on schedule at both the
Whabouchi mine and the Shawinigan plant, (iii) the ability of the
Corporation to meet funding and other conditions under the
Streaming agreement and the senior secured bonds, (iv) the outcome
of the evaluation of several options that would enable existing and
new shareholders and project partners to provide funding, (v) the
ability of the Corporation to complete the mine construction and
the the Shawinigan facility (v) the interest from users for samples
from the Phase 1 Plant, and (vi) generally, the above “About
Nemaska Lithium” paragraph which essentially describes the
Corporation’s outlook. Forward-looking statements are based on
expectations, estimates and projections as of the time of this
press release. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by the Corporation as of the time of such statements,
are inherently subject to significant business, economic and
competitive uncertainties and contingencies. These estimates and
assumptions may prove to be incorrect.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
additional funding or any other strategic alternatives can be
available, that the Corporation will meet conditions under the
streaming facility and the bonds and that the Whabouchi mine and/or
the electrochemical plant in Shawinigan will be commissioned and
will begin production, as future events could differ materially
what is currently anticipated by the Corporation.
By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and risks exist that estimates, forecasts, projections
and other forward-looking statements will not be achieved or that
assumptions do not reflect future experience. Forward-looking
statements are provided for the purpose of providing information
about management’s expectations and plans relating to the future.
Readers are cautioned not to place undue reliance on these
forward-looking statements as a number of important risk factors
and future events could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates, assumptions and intentions expressed in
such forward-looking statements. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements and those made in our other filings with the
securities regulators of Canada including, but not limited to, the
cautionary statements made in the “Risk Factors” section of the
Corporation’s Annual Information Form dated October 10, 2018, and
the “Risk Exposure and Management” section of the Corporation’s
quarterly Management Discussion & Analysis. The Corporation
cautions that the foregoing list of factors that may affect future
results is not exhaustive, and new, unforeseeable risks may arise
from time to time. The Corporation disclaims any intention or
obligation to update or revise any forward-looking statements or to
explain any material difference between subsequent actual events
and such forward-looking statements, except to the extent required
by applicable law.
Further information regarding Nemaska Lithium is
available in the SEDAR database (www.sedar.com) and on the
Corporation’s website at: www.nemaskalithium.com.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Victor CantoreInvestor Relations514
831-3809victor.cantore@nemaskalithium.com |
Wanda
Cutler Investor Relations416 303-6460
wanda.cutler@nemaskalithium.com |
Gabrielle TellierMedia
Relations514 348-0466gabrielle.tellier@nemaskalithium.com