Nemaska Lithium Inc. (the “
Corporation”) (TSX:
NMX) (OTCQX: NMKEF) (Frankfurt: N0T) today announced that, further
to its update of February 13, 2019 on the evolution of the
Whabouchi project, its Board of Directors has appointed a Special
Committee to review all strategic alternatives for the Corporation.
The Special Committee is comprised of
independent members of the Corporation’s Board of Directors, being
François Biron, Vanessa Laplante and Paul-Henri Couture, the latter
acting as Chairman of the Special Committee.
In connection with this review process,
Clarksons Platou Securities AS has been engaged as financial
advisor to the Corporation and the Board, National Bank Financial
and PricewaterhouseCoopers have been engaged as financial advisors
to the Special Committee and the Board and McCarthy Tétrault LLP
has been engaged as legal advisor to the Special Committee and the
Board.
The Corporation has, with the assistance of the
Special Committee and the engaged advisors, initiated its review
process which it intends to complete in a timely fashion including
alternatives which may be available to secure the additional
funding required to complete the Whabouchi mine and the Shawinigan
plant.
Management will work closely with the Special
Committee to review all alternatives including but not limited to
common stock, preference shares, debt instruments permitted under
the stream and the senior secured bonds, other sources of funds and
M&A alternatives. The Corporation will update the market
accordingly at such time as the Board approves a definitive
strategic alternative, or otherwise determines that further
disclosure on the review process is appropriate.
About Nemaska Lithium
Nemaska Lithium Inc. 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, the Corporation
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.
The Corporation 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 availability of strategic options
or alternatives, the implementation of any alternative
transactions, obtaining the additional capital required to enable
the Corporation to complete construction, the estimated additional
costs for completing the construction of the Whabouchi mine and the
Shawinigan plant, the ability to meet funding conditions under the
streaming agreement and the senior secured bonds, 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 obtaining of the additional capital
required to fulfill the 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.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
outcome of the review process of all strategic alternatives
available to the Corporation (ii) the ability of the Corporation to
secure additional funds, including the ability of the Corporation
to implement funding solutions to meet the revised budget and
deliver the project according to the schedule, (iii) the revised
costs which are based on current estimates and may be subject to
variations, (iv) construction advancing on schedule at both the
Whabouchi mine and the Shawinigan plant, (v) the ability of the
Corporation to meet funding conditions under the streaming
agreement and the senior secured bonds, (vi) the outcome of the
evaluation of several options that would enable existing and new
shareholders and project partners to provide funding, (vii) the
ability of the Corporation to complete the mine construction in
October 2019 and make the first shipment of spodumene concentrate
in December 2019 followed by the start of the Shawinigan facility
the year after (viii) the interest from users for samples from the
Phase 1 Plant, and (ix) 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 electrochemical plant in Shawinigan will
be commissioned and will begin production, as future events could
differ materially what is currently anticipated by the Corporation.
In addition, there can be no assurance that the review process of
the Special Committee will result in any financing or other
transaction.
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.
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 Relations416 303-6460
wanda.cutler@nemaskalithium.com |
Gabrielle TellierMedia
Relations819 533-0080gabrielle.tellier@nemaskalithium.com