Nemaska Lithium Inc. (“
Nemaska Lithium” or the
“
Corporation”)
(TSX: NMX) (OTC:
NMKEF) is pleased to provide a construction project and
development update for its Whabouchi mine and electrochemical plant
in Shawinigan (the “
project”). Guy Bourassa,
President and CEO and Steve Nadeau, Chief Financial officer of
Nemaska Lithium will be hosting an online conference call today,
November 19, 2018 at 4:30 pm EST. The webcast can be accessed at
https://edge.media-server.com/m6/p/oufyexm8 and
the associated presentation will be available later today for
download at
https://www.nemaskalithium.com/en/investors/webcast-call/. Dial-in
numbers are US/CANADA Participant Toll-Free Number:
1 (800)
708-4540 or US/CANADA Participant International Number: 1
(847) 619-6397. The conference ID is 47884282.
Occupational health and safety are of paramount
importance to Nemaska Lithium, and as of October 27, 2018 the
Corporation is pleased to report that there has been no lost time
due to injury during the 245,397 construction and engineering hours
worked at both Whabouchi and Shawinigan construction sites.
Construction is progressing as planned at both
Whabouchi and Shawinigan locations. As of October 27, 2018,
commitments totaled $315.9M or 36% of the
total project budget of $874.7M, including contingency. The total
budget of $874.7M includes $73.5M already invested by Nemaska
Lithium as at November 30, 2017 and identified as sunk costs in the
2018 Feasibility Study.
Guy Bourassa, President and CEO of Nemaska
Lithium said, “As expected, we remain on track per our plan. As
winter has arrived at both facilities, I am often asked about
weather impacts on construction and operations. Accordingly, we
fast tracked the pouring as much as possible of the concrete at the
mine site and were able to complete most of it prior to the
freezing. Naturally, the execution calendar takes into
consideration the winter conditions. In addition, construction is
moving ahead inside the concentrator building and we will be able
to start installing equipment as it arrives at site.”
All amounts are in million (“M”) of Canadian
dollarsConstruction report selected information on expenditures and
commitments as of October 27, 2018 |
Description |
NI-43-101Budget |
As at October 27, 2018 |
NI 43-101 Budget remaining
commitments |
Estimate at completion (EAC) |
Varianceas at Oct. 27,
2018 |
Commitments |
Incurred |
Whabouchi Mine Site |
$303.6M |
$177.3M |
$115.9M |
$143.9M |
$321.2M |
$17.6M |
Shawinigan Electrochemical Plant |
$470.8M |
$138.6M |
$47.9M |
$349.3M |
$487.9M |
$17.1M |
Contingency |
$100.3M |
|
|
$65.6M |
$65.6M |
$(34.7M) |
TOTAL WHABOUCHI & SHAWINIGAN |
$874.7M |
$315.9M |
$163.8M |
$558.8M |
$874.7M |
|
As for the purchasing packages for both sites,
75% of the budget has been committed for the Whabouchi mine and 45%
for the Shawinigan electrochemical plant, putting Nemaska Lithium
in line to complete the project construction per the timeline.
Concentrate production is expected to commence in the second half
of 2019 and lithium salts production is scheduled to start the
second half of 2020.
The detailed engineering for the Whabouchi mine
site, excluding the electrical engineering, is 84% complete with
the electrical engineering estimated to be 55% complete. Detailed
engineering at Shawinigan is 38% complete and the electrical
engineering has just begun. Engineering at both sites is tracking
to schedule, per the construction timeline targets.
Whabouchi Project
Construction
At the Whabouchi mine site, procurement of the
main equipment is complete, and mine site construction is
progressing rapidly. The primary crusher foundation is completed
and the retaining wall is installed, as well as the foundations for
the electrical room, the secondary crusher and the dome for the
fine ore and residue. Inside the concentrator building, significant
developments continue, with the pouring of the concrete, the first
overhead crane, ventilation and electrical wiring trays. In
addition, the foundation for the process water tank and thickener
has been installed. The dome which will hold the finished
concentrate product before shipping has also been erected and the
maintenance garage foundation is complete.
Shawinigan Project
Construction
At Shawinigan, the procurement team proceeded
with a call for tender on six important packages and completed the
technical and commercial evaluation of these. The Corporation is
expecting to award these lots in the current quarter. The site
preparation is moving forward at the forecasted pace in tandem with
the detailed engineering. Preparation of the flash calciner area is
continuing and has been readied for the pouring of the concrete
pad, located outside the main building. Civil work on-going inside
the main two buildings, the piling and foundations adjustments
activities to start. In addition, the administrative office
building is nearing completion with scheduled move-in date in
December 2018.
“The major metrics to watch at Shawinigan at
this point are the level of detailed engineering and procurement of
long lead items. As we said in our last report, all the long lead
items have been ordered and we have good visibility into delivery
dates. Likewise, we doubled our level of detailed engineering since
our last report. The engineering impacts the layout of the facility
and we are very pleased with where we are on that front,” Bourassa
said.
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
construction and commissioning as well as the anticipated start of
production 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 receive the remaining
proceeds from the project financing being the second tranche
payment under the Streaming facility and the Bonds offering
proceeds, 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
concentrate production expected to start in H2 2019 with lithium
salts production expected in H2 2020, (ii) the winter weather
impacts on construction, (iii) the purchasing packages and
engineering at both sites progressing to meet the construction
timeline targets, (iv) the award of six major packages for the
electrochemical plant in the current quarter, (v) the move-in to
the Shawinigan administrative office by December 2018, and (vi)
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 and/or the Shawinigan electrochemical plant will
ever start 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 expectations and plans relating to the future,
and, more particularly, about management’s endeavors to (i) fulfill
the remaining conditions to access the remaining proceeds from the
CAD 1.1B financing package, and (ii) complete construction and
commissioning both the Whabouchi mine and the Shawinigan
electrochemical plant such that both sites are brought to
commercial production in a timely manner. 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 10, 2018
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 |
Fanny-Ève Tapp Media Relations O. 514 935 2777 # 204 C. 514 442
0445 fanny-eve.tapp@nemaskalithium.com
www.nemaskalithium.com
All photos accompanying this announcement
are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/c4f90bdb-d245-40e7-a1fa-e49abc186ef9
http://www.globenewswire.com/NewsRoom/AttachmentNg/af7cfd55-9eea-4f56-8762-17c7dd99b3cf
http://www.globenewswire.com/NewsRoom/AttachmentNg/a2b6dbff-93c7-4897-9901-c5ac1813deb6
http://www.globenewswire.com/NewsRoom/AttachmentNg/eb05e361-5852-4b16-9dd0-43ecbed3b8a4
http://www.globenewswire.com/NewsRoom/AttachmentNg/27c2aa13-06bc-4772-91ae-07317235be13