Nemaska Lithium Inc. (the “
Corporation”) (TSX:
NMX) (OTCQX: NMKEF) (Frankfurt: N0T) today provides an update on
the overall Whabouchi project and discloses its quarterly
financials.
“We have made good overall progress during the
past months on both the construction at the Whabouchi mine and the
detailed engineering at the Shawinigan plant. While we are
carefully managing cash at our disposal, we are also reviewing
financing opportunities and strategic alternatives with the help of
our financial advisors. We are diligently proceeding one step at a
time towards achieving our ultimate goals within the best possible
timeframe in the best interest of all our stakeholders,” said Guy
Bourassa, President and CEO of Nemaska Lithium.
As at March 31, 2019, the Corporation had on
hand CAD $262.3M in unrestricted cash and cash equivalents and the
equivalent in CAD $522M of restricted cash and in-trust deposits
(mainly bond proceeds). As at March 31, 2019, CAD $190.1M has been
incurred for the Whabouchi mine, and CAD $111.4M for the
Shawinigan electrochemical plant.
Construction Execution Plan
Underway
At Whabouchi, the foundations for the primary,
secondary and tertiary crushers are completed and structural steel
installation is well advanced. Furthermore, concrete pouring and
backfilling are nearing completion, electric distribution is
completed, and the construction camp, its cafeteria and training
facilities are fully functional. About 50% of the crushing, ore
sorting and concentrator equipment has been received, and most of
it has been installed.
In Shawinigan, detailed engineering work for the
electrochemical plant continues. The progress achieved over the
past few months will be reflected in the updated 43-101 Technical
Report – Feasability Study expected to be completed in June. As at
April 30, 2019, the detailed engineering progress was estimated at
approximately 55% complete, which will add considerable knowledge
to the project that could translate into cost savings in the
subsequent bidding and procurement process set to resume upon
completion of the project financing.
As previously mentioned, the construction pace
at both the Whabouchi mine and the Shawinigan plant has been
adapted to ensure an optimal and efficient use of current
resources. In addition, the majority of BBA’s recommendations
received at the end of April have been implemented.
Financing alternatives under review
The dual-track financing action plan and review
process of all available alternatives is underway as the
Corporation is, with the assistance of Clarksons Platou Securities
and National Bank Financial, in touch with different parties and
analyzing potential available options. The reception of the BBA
report at the end of April 2019 was a key element in advancing
these discussions as it provided validation of the cost-to-complete
estimate and the operational strategy.
Constant Deliveries Out of the Phase 1
Plant
Activities out of the Phase 1 plant continue at
a steady pace. High purity lithium hydroxide monohydrate commercial
samples are delivered every week to current and potential clients
internationally.
Conference Call
Nemaska Lithium will host a conference call on
May 16, 2019 at 10:30 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/8ygntgrn
Dial information: US/CANADA Participant
Toll-Free Dial-In Number: (866) 353-6129US/CANADA
Participant International Dial-In Number: +1 (409)
217-8084Conference ID: 6769469
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 preserving cash on hand, obtaining
the additional capital required to enable the Corporation to
complete construction, the careful management fo the Corporation’s
resources, including cash, 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 on a timely basis, 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
review of financing opportunities and strategic alternatives to
complete the project financing, (ii) the addition of considerable
knowledge depth as a result of detailed engineering progress, (iii)
the cost savings in subsequent bidding and procurement process set
to resume after financing, (iv) the optimal and efficient use of
current resources until financing is completed, (v) the existence
of potential financing opportunities to carry the project through
commercial production, (vi) the completion of an updated NI 43-101
Technical Report – Feasibility Study, and (vii) 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
Photos accompanying this announcement are available
at: http://www.globenewswire.com/NewsRoom/AttachmentNg/66723b06-221c-4aec-9b4b-0244f78cfaf8http://www.globenewswire.com/NewsRoom/AttachmentNg/21aa212a-0b28-4643-9fc7-eaa0484ad5adhttp://www.globenewswire.com/NewsRoom/AttachmentNg/606c53af-f921-4539-9809-d57ab7d4e5cchttp://www.globenewswire.com/NewsRoom/AttachmentNg/a0a73d55-a9df-4a3a-9749-134f2a9d4198