Nemaska Lithium Receives First Installment of $2.1 Million from Sustainable Development Technology Canada for Phase 1 Lithium Hydroxide Plant
February 2, 2016 (Source) — Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX VENTURE:NMX)(OTCQX:NMKEF) confirms the signing of the final contract for the $12.87 M non-repayable grant for construction and operation of its Phase 1 Lithium hydromet plant. Concurrently with the signing of the agreement with Sustainable Development Technology Canada (SDTC), the Corporation has received the first installment of $2.1M.
The Phase 1 plant is designed to produce 500 tonnes per year of high purity lithium hydroxide. The Corporation is pleased to announce that the detailed engineering has commenced and that the construction of the Phase 1 plant is expected to start during Q1-2016 and be completed during Q4-2016. Once built, Nemaska Lithium intends to use this facility to produce commercial lithium hydroxide samples to send to end users in the lithium battery market with a goal of securing off-take agreements in advance of start of operation at the Whabouchi lithium mine and commercial hydromet facility. Nemaska Lithium is in discussions with a number of potential end users, all of which have requested samples as soon as possible.
“The demand for lithium hydroxide is growing at double digit rates annually and end users are keen to secure supply,” commented Guy Bourassa President and CEO of Nemaska Lithium. “Our unique method of producing lithium hydroxide uses electrolysis technology whose main input is electricity which, in Quebec, is green renewable hydro-electricity. This makes our lithium hydroxide process one of the greenest and lowest cost in the world. This is a value proposition which is unmatched in the industry and perfectly aligns us with the values of battery manufacturers, electric vehicle and energy storage consumers globally. The SDTC has a vision for clean technology-based businesses in Canada and we are proud to be a recipient of SDTC funding.”
The SDTC agreement is comprised of three milestones and provides for two payments during the first milestone, where each payment represents 45% of the SDTC milestone contribution. Each payment to be received at the beginning of the two subsequent milestones will represent 90% of the total SDTC milestone contribution. Nemaska Lithium will produce a report at the end of each milestone after which it will receive the next installment for the following milestone. The remaining 10% of each milestone will be paid after filing the final report.
About Nemaska Lithium
Nemaska Lithium intends to become a 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 patent applications have been filed.
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Sustainable Development Technology Canada (SDTC) acts as a primary catalyst in building a sustainable development technology industry in Canada, funding and supporting Canadian cleantech projects across a number of sectors. SDTC invests in Canadian companies that through their innovative technologies bring positive contributions to Canada: creating quality jobs, driving economic growth, and preserving our environment. SDTC is a foundation funded by the Government of Canada.
For more information, please visit sdtc.ca
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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