Nemaska Lithium Announces a C$2,200,443.92 Final Closing Offering
November 11, 2013 (Source: Marketwired) — NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART OR INTO THE UNITED STATES
NEMASKA LITHIUM INC. (“Nemaska” or the “Corporation”) (TSX VENTURE:NMX)(OTCQX:NMKEF) announces that it has closed the second tranche of a supplemental prospectus offering (the “Offering”) of an aggregate of 1,666,666 units, at a price of C$0.12 per unit, for gross proceeds of C$199,999.92 in connection with the short form base shelf prospectus of the Corporation dated March 4, 2013, as supplemented by the prospectus supplement no. 2 dated October 16, 2013, finalizing a C$2,200,443.92 offering (the “Offering”), the first tranche of which was closed as of October 28, 2013.
Each unit is comprised of one common share of Nemaska (a “Common Share”) and one-half of one Common Share purchase warrant. Subject to acceleration provisions as described in the Warrant Indenture entered into between the Corporation and Computershare Trust Company of Canada dated October 28, 2013, each whole Common Share purchase warrant is exercisable for a period of 24 months from the closing date of the Offering to purchase one Common Share at a price of C$0.18.
The net proceeds from the Offering will be used (i) to complete the permitting process for the mine and concentrator on the Whabouchi property, (ii) to complete the feasibility study for the Whabouchi project and the hydrometallurgical plant in Salaberry-de-Valleyfield and (iii) for general administrative expenses and other working capital.
In consideration for the service rendered in connection with the second tranche of the Offering, Secutor Capital Management Corporation received an aggregate cash commission of C$15,999.99.
As a result of the second tranche of the Offering, the Corporation will have 134,337,274 common shares issued and outstanding.
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The securities issued under the Offering have not been registered under the United States Securities Act of 1933 (the “Act”) or any state securities laws and may not be offered or sold absent registration under the Act and applicable state securities laws or an applicable exemption from the registration requirements thereof. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption there from.
Nemaska intends to become a lithium hydroxide/carbonate producer based in Québec and has filed patent applications for its proprietary production methods. In tandem, the Corporation is developing one of the richest spodumene lithium hard rock deposit in the world, both in volume and grade. Spodumene concentrate produced at Nemaska’s Whabouchi mine and from other global sources will be shipped to the Corporation’s lithium hydroxide/carbonate processing plant to be built in Salaberry-de-Valleyfield, Québec. This plant will transform spodumene concentrate into high purity lithium hydroxide and lithium carbonate mainly for the growing lithium battery market. The Nemaska’s Whabouchi deposit, located in the James Bay Region in the Province of Québec, Canada, near the Cree community of Nemaska, should have an initial mine life of 18 years.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nemaska to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>