Nemaska Announces the Terms of its Offering
June 30, 2016 (Source) — NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Nemaska Lithium Inc. (“Nemaska” or the “Corporation”) (TSX VENTURE:NMX) (OTCQX:NMKEF) is providing additional details concerning its previously announced proposed marketed offering. The Corporation will offer a minimum of 43,480,000 units of the Corporation (the “Units”) for aggregate gross proceeds of $50,002,000 and a maximum of 52,174,000 Units for aggregate gross proceeds of $60,000,100 (the “Offering”), at a price of $1.15 per Unit (the “Offering Price”). The Offering will be made pursuant to a short form prospectus (the “Prospectus”) in each of the provinces and territories of Canada which is expected to be filed shortly. Upon receiving a receipt from the Autorité des marché financiers, as principal regulator, evidencing the receipt from all applicable securities regulatory authorities, a copy of the final Prospectus will be available on SEDAR at www.sedar.com.
Each Unit will consist of one common share in the share capital of the Corporation (a “Common Share”) and one-half of one Common Share purchase warrant of the Corporation (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will entitle its holder to purchase one Common Share (a “Warrant Share”) at a price of $1.50 per Warrant Share at any time prior to 5:00 p.m. (Montreal time) on the date that is 36 months following the closing date of the Offering (the “Warrant Expiry Date”). The Corporation may accelerate the Warrant Expiry Date if, before the Warrant Expiry Date and at any time following the closing date of the Offering, the closing price of the Common Shares listed on the TSX Venture Exchange or the Toronto Stock Exchange, as applicable, is equal to or above $2.25 for a period of 20 consecutive trading days.
The Offering is being conducted on a best effort basis through Dundee Securities Ltd., acting as lead agent (the “Lead Agent”), and including Cormark Securities Inc., CIBC World Markets Inc., GMP Securities L.P., Desjardins Securities Inc., Echelon Wealth Partners Inc. and Jett Capital Advisors, LLC (together with the Lead Agent, the “Agents”).
In order to cover for over-allotments, if any, and for market stabilization purposes, the Corporation will grant the Agents an over-allotment option (the “Over-Allotment Option”), exercisable for a period of 30 days from and including the closing date of the Offering, to offer and sell at the Offering Price an additional number of Units equal to 15% of the number of Units sold pursuant to the Offering.
The Corporation intends to use the net proceeds of the Offering for engineering fees in relation to the Whabouchi Mine and concentrator and the Shawinigan hydromet plant, down-payments for long lead items, drilling and for general working capital purposes.
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All of the information contained in this press release relating to the terms of the Offering are subject to and qualified by the information to be contained in the Prospectus.
This press release does not constitute an offer of securities for sale in the United States or to “U.S. persons” (“U.S. persons”), as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”). The securities being offered have not been, nor will be, registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements.
Nemaska intends to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market. The Corporation is developing in Québec one of the most important spodumene lithium hard rock deposits in the world, both in terms of volume and grade. The spodumene concentrate produced at Nemaska’s Whabouchi mine will be shipped to the Corporation’s lithium compounds processing plant to be built in Shawinigan, Québec. This plant will transform the spodumene concentrate into high purity lithium hydroxide and carbonate using the proprietary methods developed by the Corporation, and for which patent applications have been filed.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The statements contained herein that are not historical facts are forward‐looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties. Actual results could differ from those currently projected. The Corporation does not assume the obligation to update any forward-looking statement.
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