Nemaska Lithium Receives First USD 75M Payment From Orion Under Streaming Agreement
August 23 2018 - 12:03PM
Nemaska Lithium Inc. (“
Nemaska
Lithium” or
the “
Corporation”) (TSX: NMX) (OTCQX: NMKEF)
(FRANKFURT: N0T) is pleased to confirm that Nemaska Lithium
Shawinigan Transformation Inc., its wholly-owned subsidiary, has
received a first payment of USD 75M from affiliates of Orion
Mine Finance II LP (“
Orion”) under the streaming
agreement entered into on April 12, 2018 (the “
Streaming
Agreement”). Such payment represents the first tranche of
the total advance payment equal to USD 150M to be made by Orion
under the Streaming Agreement (see press release of April 12,
2018). The second USD 75M tranche will be payable upon the
satisfaction of certain technical and other customary conditions
that can be satisfied until December 31, 2019.
Guy Bourassa, President and CEO, commented, “We
welcome this first payment and look forward to working with Orion
in the coming months to bring in the second tranche payment. We are
also on track with the requirements to meet the conditions
precedent to the Bond offering’s “Long Stop Date”
of August 30, 2018 (see press release of May 30, 2018 for full
details). The project execution itself is moving forward in terms
of, but not limited to, engineering and construction and we are
bringing in the components of the project funding as needed.”
This first tranche payment from Orion was the
main remaining conditions precedent to the Long Stop Date. The
gross proceeds of the Bond Offering currently sits into a USD
escrow account pending the satisfaction of the last conditions
precedent on or prior the Long Stop Date.
Stormcrow Capital acted as advisor to Nemaska
Lithium and facilitated the Orion streaming transaction.
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.
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 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 Corporation bringing all the
funding needed to execute the project, 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 Corporation receiving all
proceeds from the Streaming Agreement and the Bond offering.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
receipt by the Corporation of the second USD 75M tranche from the
Streaming Agreement, (ii) the satisfaction of the conditions
precedent to the Long Stop Date, (iii) the project moving on track,
and (iv) 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
Corporation will meet all requirements to the Long Stop Date and
will receive the second USD 75M tranche from the Streaming
Agreement, 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:
Victor
CantoreInvestor
Relations514 831-3809victor.cantore@nemaskalithium.com
Fanny-Ève TappMedia
Relations514 442-0445fanny-eve.tapp@nemaskalithium.com |
Wanda
Cutler Investor Relations 416 303-6460
wanda.cutler@nemaskalithium.com |
www.nemaskalithium.com