Nemaska Lithium Terminates FMC (Livent) Supply Agreement
February 18 2019 - 6:42PM
Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX:
NMX) (OTCQX: NMKEF) (FRANKFURT: N0T) announces that is has
terminated its multi-year supply agreement (the “Supply Agreement”)
with Livent Corporation (previously FMC Corporation – hereinafter
“Livent”). The Supply Agreement pertains to the provision of up to
8,000 tonnes per year (28,000 tonnes in total during the term of
the contract) of lithium carbonate starting April 1, 2019.
As disclosed in the Corporation’s financial
statements for the year ended June 30, 2018 (Note 23 – Subsequent
Events), the Corporation and Livent have had discussions with a
view to amend the Supply Agreement and throughout the discussions
with Livent, the Corporation has advised Livent that it might have
no option but to terminate the Supply Agreement and repay Livent
the USD10M payment (received by the Corporation in April 2017) plus
a similar amount as a termination fee, which the Supply Agreement
expressly allows it to do. Despite good faith negotiations, the
Corporation was unable to reach a mutually satisfactory outcome
with Livent. As a result, the Corporation has no choice but to
exercise its contractual right to terminate the Supply Agreement.
Livent has advised the Corporation that it is seeking arbitration,
which the Corporation will vigorously defend.
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 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 arbitration proceedings,
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. There is no assurance that these assumptions will prove to
be correct.
Forward-looking statements contained in this
press release including, without limitation, those related to (i)
the Corporation’s assertion of its entitlement to terminate the
Supply Agreement, (ii) the outcome of the arbitration process,
(iii) the ability of the Corporation to access additional funding
under existing arrangements, and (iv) generally, the above "About
Nemaska Lithium" paragraph which essentially describes the
Corporation's outlook, constitute ''forward-looking information''
or ''forward-looking statements'' within the meaning of certain
securities laws, and 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 an
outcome satisfactory to the Corporation will result from the
arbitration proceedings.
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
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
CutlerInvestor Relations416
303-6460wanda.cutler@nemaskalithium.com |
Fanny-Ève TappMedia
Relations514 442-0445
fanny-eve.tapp@nemaskalithium.comwww.nemaskalithium.com