Deal funds construction, operation costs to produce lithium hydroxide
By Devika Patel
Knoxville, Tenn., March 11 – Nemaska Lithium Inc. said it plans a C$13 million private placement of units.
The company will sell 38,235,295 units of one common share and one half-share warrant at C$0.34 per unit. Each whole two-year warrant will be exercisable at C$0.48. The strike price reflects an 18.64% discount to the March 10 closing share price of C$0.59.
Ressources Quebec Inc. will invest C$10 million.
Settlement of the first tranche is expected March 25.
Proceeds will be used for the construction and operation costs of the Phase 1 Plant that will produce lithium hydroxide and for general expenses.
“This investment shows a commitment from the government of Quebec and the Cree Community of Nemaska to our project,” president and chief executive officer Guy Bourassa said in a press release. “The Crees have been long term shareholders having invested in the corporation when we were still private. We are pleased that they continue to show their support and remain strong advocates of developing a successful lithium project in Quebec.
“Likewise the government of Quebec has been very supportive of our strategy to build a Phase 1 Plant to attract customers and sign off take agreements while we build the Whabouchi mine and commercial hydromet plant in Shawinigan.
“This is the final portion of the overall Phase 1 Plant budget of C$38 million, of which we were able to secure C$28 million in non-dilutive financing through government contributions and advance payment for products and services from the Phase 1 Plant. Our next step is to finalize the JMBM agreement and start construction. We have customers calling us daily looking to secure lithium hydroxide and with this facility, we will be in a position to respond with product samples. The demand for lithium hydroxide is growing at a rate never seen before in the industry and we are perfectly timed to come to market with high quality product,” Bourassa said.
The lithium mining company is based in Quebec.
| Issuer: | Nemaska Lithium Inc.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$13 million
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| Units: | 38,235,295
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| Price: | C$0.34
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.48
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| Investor: | Ressources Quebec Inc. (for C$10 million)
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| Pricing date: | March 11
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| Settlement date: | March 25
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| Stock symbol: | TSX Venture: NMX
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| Stock price: | C$0.59 at close March 10
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| Market capitalization: | C$126.45 million
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