Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”)
(TSX:NMX) (OTC:NMKEF) is pleased to announce the signing of a
supply agreement (the “Agreement”) of spodumene concentrate with
Hanwa Co., Ltd. (“Hanwa”) acting as agent for General Lithium Corp.
(“GLC”), the latter having signed the Agreement as
intervenor.
Under this Agreement and through its
wholly-owned subsidiary Nemaska Lithium Whabouchi Mine Inc.,
Nemaska Lithium will supply a significant quantity of spodumene
concentrate on a take-or-pay basis at a market priced-based
formula, at the time of delivery. The supply period will commence
after the construction of the Whabouchi Mine and continue up to the
full ramp-up of the electrochemical plant in Shawinigan.
“We are very pleased to conclude this commercial
relationship with Hanwa, a leading, Japan-based, global trading
company, and GLC, a China-based company specialized in R&D,
production and sales of lithium products and one of the top class
spodumene converters in China”, declared Guy Bourassa, President
& Chief Executive Officer of Nemaska Lithium.
Bourassa continued, “Our business plan remains
to be vertically integrated and to sell lithium hydroxide and
lithium carbonate from our electrochemical plant in Shawinigan;
however, given that the Whabouchi mine will be in production about
a year before the electrochemical plant is ready to be
commissioned, we decided to be opportunistic and sell spodumene
concentrate in the interim, effectively enabling us to generate
revenue by the last quarter of 2019.”
About Nemaska Lithium
Nemaska Lithium is a developing chemical company
whose activities will be vertically integrated, from spodumene
mining to the commercialization of high-purity lithium hydroxide
and lithium carbonate. These lithium salts are mainly destined for
the fast-growing lithium-ion battery market, which is driven by the
increasing demand for electric vehicles and energy storage
worldwide. With its products and processes, Nemaska Lithium intends
to facilitate access to green energy, for the benefit of
humanity.
The Corporation will be operating the Whabouchi
mine in Québec, Canada, one of the richest lithium spodumene
deposits in the world, both in volume and grade. The spodumene
concentrate produced at the Whabouchi mine will be processed at the
Shawinigan plant using a unique membrane electrolysis process for
which the Corporation holds several patents.
Nemaska Lithium is a member of the S&P/TSX
SmallCap Index, S&P/TSX Global Mining Index, S&P/TSX Global
Base Metals Index, S&P/TSX Equal Weight Global Base Metals
Index, and the MSCI Canada Small Cap Index. For more information,
visit www.nemaskalithium.com or twitter.com/Nemaska Lithium.
About Hanwa and GLC
Hanwa is a leading, Japan-based global trading
company, operating in a wide range of fields. Since its inception
in 1947, Hanwa has achieved steady growth in a diverse range of its
businesses such as steel, metals and alloys, non-ferrous metals,
food products, petroleum, chemicals, lumber, machinery and others,
whilst it has been specifically focusing on the feedstock for the
growing rechargeable battery industry. Based in China, GLC was
founded in 2006. It is specializing in R&D, production and
sales for basic lithium products and series lithium-battery new
materials; its products are widely used in lithium-battery industry
and centre air-conditioner industry.
Cautionary Statement on Forward-Looking
Information
All statements, other than statements of
historical fact, contained in this press release including, but not
limited to, those relating to the sale by the Corporation and the
purchase by Hanwa, on a take-or-pay basis, of a significant
quantity of spodumene concentrate, constitute “forward-looking
information” and “forward-looking statements” within the meaning of
certain securities laws and are based on expectations and
projections as of the date of this press release. Certain important
assumptions by the Corporation in making forward-looking statements
include, but are not limited to, (a) the conclusion of all
components of the project financing and receipt of all proceeds
therefrom, and (b) the construction and start of commercial
production at the Whabouchi mine.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
commencement of the supply period after the construction of the
Whabouchi mine and its continuation up to the full ramp-up of the
Shawinigan plant, (ii) the Corporation’s business plan to be
vertically integrated and sell lithium hydroxide and lithium
carbonate, (iii) the Whabouchi mine being in production a year
before the commissioning of the Shawinigan plant, (iv) the
Corporation generating revenue by the last quarter of 2019, and (v)
generally, the above “About Nemaska Lithium” paragraph which
essentially describes the Corporation’s outlook. Forward-looking
statements 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 the
Whabouchi mine will be brought to commercial production, as results
from the Corporation’s project financing endeavors and future
events could differ materially what is currently anticipated by the
Corporation.
By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and risks exist that estimates, forecasts, projections
and other forward-looking statements will not be achieved or that
assumptions do not reflect future experience. Forward-looking
statements are provided for the purpose of providing information
about management's endeavors to complete its project financing and,
more generally, its expectations and plans relating to the future.
Readers are cautioned not to place undue reliance on these
forward-looking statements as a number of important risk factors
and future events could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates, assumptions and intentions expressed in
such forward-looking statements. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements and those made in our other filings with the
securities regulators of Canada including, but not limited to, the
cautionary statements made in the “Risk Factors” section of the
Corporation’s Annual Information Form dated October 5, 2017 and the
“Risk Exposure and Management” section of the Corporation’s
quarterly Management Discussion & Analysis. The Corporation
cautions that the foregoing list of factors that may affect future
results is not exhaustive, and new, unforeseeable risks may arise
from time to time. 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.
Further information regarding Nemaska Lithium is
available in the SEDAR database (www.sedar.com) and on the
Corporation's website at: www.nemaskalithium.com.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Victor CantoreInvestor
Relations514 831-3809victor.cantore@nemaskalithium.com |
Wanda
Cutler Investor Relations 416 303-6460
wanda.cutler@nemaskalithium.com |
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Fanny-Ève Tapp Media Relations B. 514 935 2777 # 204 C. 514 442
0445 fanny-eve.tapp@nemaskalithium.com |
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www.nemaskalithium.com