Nemaska Lithium Achieves Milestone for Ressources Quebec CDN$5M and JMBM CDN$6M Payment Installments for Phase 1 Plant
June 14, 2016 (Source) — Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX VENTURE:NMX) (OTCQX:NMKEF) is pleased to announce that it has reached a key milestone for the Phase 1 Plant project. The City of Shawinigan has obtained the zoning approval necessary for permitting the site that will house Nemaska Lithium’s Phase 1 Plant and the future Commercial Hydromet Plant. With the completion of this milestone Nemaska Lithium has received the second $5M tranche from Ressources Québec Inc., a subsidiary of Investissement Québec, acting as a mandatary for the government of Québec. In addition, the Corporation has received the first installment of $6M from Johnson Matthey Battery Materials (JMBM).
The private placement with Ressources Québec totalling $10M was announced on March 11, 2016. The $12M Johnson Matthey Battery Materials transaction was announced on May 11, 2016. Funds for both transactions were held in escrow pending achievement of certain project milestones.
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“Our next steps will be to refurbish the building to meet our Phase 1 Plant needs,” commented Guy Bourassa, President and CEO. “We have spoken to our electrolyser supplier and we expect to receive the units in the fall of this year, which is in line with our expectations. We are anticipating to be in start-up mode in December 2016 with commissioning in Q1 2017 and commercial samples to follow.”
The total budget to build and operate the Phase 1 Plant for two years is $38M, of which $12M comes from JMBM up-front payment, $13M from a grant from Sustainable Development Technologies Canada (SDTC), $3M grant from Technoclimat program through the Bureau de l’efficacité et de l’innovation énergétiques of the Ministère de l’Énergie et des Ressources naturelles and finally a $10M equity investment by Ressources Québec Inc.
About Nemaska Lithium
Nemaska Lithium intends to become a lithium hydroxide supplier and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles, cell phones, tablets and other consumer products. The spodumene concentrate produced at Nemaska Lithium’s Whabouchi mine will be shipped to the Corporation’s lithium compounds processing plant to be built in Shawinigan, Quebec. This plant will transform 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 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The statements 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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