Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”)
(TSX:NMX) (OTC:NMKEF) is very pleased to provide a project
construction update and development timeline for its Whabouchi Mine
and Electrochemical Plant in Shawinigan. Moving forward, Nemaska
Lithium intends to issue progress reports in conjunction with its
quarterly and annual financial reporting.
Guy Bourassa, President and CEO of Nemaska
Lithium, commented, “With the project financing structure completed
on May 30th, our project construction and planning are on schedule
at both locations and construction activities are increasing week
by week. I am pleased that we are progressing according to plan and
that we are on track to start producing spodumene concentrate in
the second half of 2019 with lithium salts production commencing in
the last half of 2020. Our conversations with end users suggest the
market for battery grade lithium hydroxide and lithium carbonate
remains very tight. Accordingly, we signed with LG Chem earlier
this month our fourth supply agreement and we are currently
negotiating the final terms of a fifth agreement with Northvolt and
that puts us at more than 90% of our future lithium hydroxide and
lithium carbonate production already committed. Our offtake
contracts are multi-year agreements with several lasting for a
period of up to 5 years. We are also actively marketing the Company
to new and existing institutional shareholders with recent meetings
in Asia, United States, London, Europe and Canada from which we
have had much positive feedback.”
Further to the recent completion of a CAD1.1B
project financing package, the Corporation has resumed work at the
Whabouchi mine, has initiated the purchases of long lead items for
both sites and is preparing the Shawinigan site for civil
engineering work this summer. To assist in project execution,
Nemaska Lithium has already retained the services of several
outside engineering and consulting groups:
- The Procurement and Construction Management (PCM) team of
Nemaska Lithium is supported by Nardella Group who is responsible
to maintain budget control and schedule;
- ABB is providing the electrical equipment and electrical
engineering services for both sites;
- DRA Met-Chem is assisting with the mine and concentrator
engineering design;
- SNC-Lavalin is retained for the design of the tailings and
waste co-disposal site; and
- Hatch Engineering is providing engineering design assistance
for the electrochemical plant.
Whabouchi Mine Construction
The mine construction has resumed and has a 12
to 15 months schedule, with concentrate production expected to
commence in the second half of 2019. Prior to the most recent
project financing, about CAD80M had already been invested in the
Whabouchi site construction and preparation. Since the completion
of the CAD1.1B project financing package, the following has been
initiated, is partially complete or completed:
- Key positions including Mine Geologist, Maintenance Director,
Human Resource Director, Metallurgist, Director of Operations for
the Concentrator and Mining Engineer have been hired and are
working on the readiness plan to ensure seamless hand off from the
Construction Team to the Operations Team.
- Long lead items including ore sorting, floatation columns, ball
mill and dry magnetic separator have been ordered. Engineering is
also preparing requests for information for bids and completing
technical bid evaluations on other equipment.
- Civil works have resumed at the mine site and on-site roads are
being completed, administrative offices are installed and are fully
operational with full-time staff working at the mine site
location.
- Civil engineering work is underway for crushing and ore sorting
buildings as well as the garage. In addition, civil works on the
internal construction of the concentrator building including
foundations and structural steel installation continues.
- The power line to the mine site from the Nemiscau sub-station
has been installed. Installation of the transformer and electrical
room is underway and hook up to the grid is pending Hydro-Québec
availability, which is currently scheduled for August 2018.
- Nemaska Lithium is working closely with the Cree School Board
and Cree Human Resources Development Corporation and training for
mining jobs is currently ongoing, ensuring a large portion of the
mine employees can come from the nearby Cree Community of Nemaska,
supporting local communities.
Three photos accompanying this announcement are
available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/2c3d8bd9-d9ad-48aa-acf3-22026364d96e
http://www.globenewswire.com/NewsRoom/AttachmentNg/211d1ec4-74db-418b-a0f4-03510a95797b
http://www.globenewswire.com/NewsRoom/AttachmentNg/42c33486-a5c6-4f47-9f5b-3d0097b1fa02
Electrochemical Plant
Construction
The electrochemical plant has a 27 months
construction schedule. Prior to the most recent project financing,
close to CAD20M had already been invested for the Shawinigan site.
To date, the following has been either initiated, partially
completed or completed:
- Civil works have commenced following the final demolition, by
the former owner, of the obsolete buildings that were on the
Nemaska Lithium property. With the demolition completed, civil
engineering has started to prepare the building and site to receive
equipment.
- Detailed engineering is ongoing with several long lead items
including the calciner, acid baking system, electrolyser, and
crystallizer suppliers identified. Bids are expected to be awarded
shortly for these priority items.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/dde7fd0b-0d95-4dfd-8bec-a8086a66175b
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.
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 expected unfolding of activities
at the Whabouchi mine and Shawinigan plant sites, 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, the
fulfillment of all conditions precedent to effectively complete the
remaining components of the project financing being the Streaming
facility and the Bonds offering, such that all proceeds from the
CAD1.1B financing package will be received the Corporation.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
12 to 15 months mine construction schedule leading to the start of
spodumene concentrate production in Q4 2019, (ii) the 27-month
plant construction schedule leading to the start of lithium salts
production in the last half of 2020, (iii) the market tightness for
battery grade lithium hydroxide and lithium carbonate, (iv) the
finalization of supply agreement with Northvolt, (v) the seamless
transition from construction to operations, (vi) the Corporation’s
future production of lithium hydroxide and lithium carbonate, (vii)
the Corporation’s activities progressing in accordance to plan,
(viii) the employment of a large portion of mine workforce coming
from the Cree community of Nemaska, (ix) the award of bids shortly
for priority items, and (x) 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 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: |
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Victor Cantore |
Wanda
Cutler |
Investor Relations |
Investor Relations |
514 831-3809 |
416 303-6460 |
victor.cantore@nemaskalithium.com |
wanda.cutler@nemaskalithium.com |
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Fanny-Ève Tapp |
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Media
Relations |
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B.
514 935 2777 # 204 |
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C.
514 442 0445 |
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fanny-eve.tapp@nemaskalithium.com |
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www.nemaskalithium.com