Nemaska Lithium Inc.: FMC Corporation Makes a US$10M Payment Per Lithium Carbonate Supply Agreement
March 22, 2017 (Source) — Nemaska Lithium Inc. (TSX:NMX)(OTCQX:NMKEF), via its wholly owned subsidiary Nemaska Lithium Shawinigan Transformation Inc. (collectively “Nemaska Lithium” or the “Corporation”), announces that FMC Corporation (“FMC”) will pay a lump sum of US$10,000,000 to Nemaska Lithium (the Payment) by April 7, 2017, in accordance with the Supply Agreement announced on October 31, 2016, and has agreed to amend the Supply Agreement to extend the timeline for the supply of product thereunder.
Under the Supply Agreement, as amended, Nemaska Lithium will begin to supply FMC with lithium carbonate no later than April 1, 2019. Nemaska Lithium will also provide lithium carbonate samples from its Phase 1 Plant to FMC for qualification in 2017.
The Payment will be secured by a first rank hypothec (lien) on the Corporation’s lithium carbonate and hydroxide inventory and the proceeds thereof. If Nemaska Lithium does not fulfill its delivery obligation under the Supply Agreement, as amended, it shall repay FMC the Payment plus a penalty calculated as per that agreement.
“The Payment and the supply period extension show that FMC, a major credible lithium producer, has continued confidence in our project and business relationship. The lithium market needs new producers, such as Nemaska Lithium, to come on stream over the next few years to keep up with the ever growing demand from the lithium ion battery market. Nemaska Lithium is committed to meeting the needs of its customers and we are on track to commence the commissioning of the Shawinigan Hydromet Plant during the second half of 2018, with production from the Whabouchi Mine commencing in the first half of 2018,” commented Guy Bourassa, President and CEO of Nemaska Lithium.
For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. Revenue totaled approximately $3.3 billion in 2016. FMC employs approximately 6,000 people throughout the world and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition and FMC Lithium. For more information, visit www.FMC.com.
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About Nemaska Lithium
Nemaska Lithium intends to become a vertically integrated lithium hydroxide 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 Corporation is developing in Quebec one of the most important spodumene lithium hard rock deposit in the world, both in volume and grade. 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 the Corporation holds four granted patents and several patent applications that are pending in different countries, covering different aspects and improvements of its proprietary technology for preparing high purity lithium hydroxide and carbonate.
All statements, other than statements of historical fact, contained in this press release including, but not limited to, (i) the Corporation to start providing FMC with lithium carbonate by April 1, 2019 at the latest, (ii) the Corporation’s aim to commence commissioning the Shawinigan Hydromet Plant during the second half of 2018 (with production from the Whabouchi Mine commencing in the first half of 2018), (iii) the Corporation to meet the needs of its customers, (iv) FMC receiving lithium samples from the Corporation’s Phase 1 Plant in 2017, (v) the ever growing demand from the lithium ion battery market, and (vi) generally, the above “About Nemaska Lithium” paragraph which essentially describe the Corporation’s outlook, constitute ”forward-looking information” or ”forward-looking statements” within the meaning of certain securities laws, and 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 forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. 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.
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