QUEBEC CITY, QUEBEC -- (Marketwired) -- 03/28/18 -- Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation") (TSX: NMX)(OTCQX: NMKEF)(FRANKFURT: N0T) provides an update on its project financing plan to raise USD 775M to USD 825M to fund the construction, commissioning, working capital and reserve funds for its Whabouchi lithium mine and Shawinigan electrochemical plant (collectively, the "Project"), and also for general corporate working capital as follows:
-- the Corporation has signed a non-binding term sheet for a USD 150
million streaming facility;
-- it is currently in advanced discussions for debt financing aggregating
USD 300-350 million; and
-- it intends to raise the remainder through private and/or public equity
or debt offerings, hence its preliminary base shelf prospectus filed on
www.sedar.com yesterday.
"We are involved in a number of formal discussions with serious parties and are confident that, upon completion, we will have secured sufficient funding to take us to commercial production," commented Guy Bourassa, President and CEO. "Our overriding goal remains to balance our wish to become an independent new lithium supplier in a timely manner, with a financing structure that is serviceable during initial production years. We will provide further information as we finalize the various components of this financing package."
Streaming Facility
The Corporation has signed a non-binding term sheet and is in the final stages of negotiating a definitive agreement with an international financial institution of good standing for the sale and delivery of an agreed-upon percentage of lithium products.
Debt Financing
The Corporation is currently in advanced discussions for arrangements to secure the debt financing as stated above.
Equity Offerings - Base Shelf Preliminary Prospectus
The Corporation filed and obtained a receipt yesterday for a preliminary base shelf prospectus to enable the possibility of raising, over a 25-month period, debt and equity financing of up to a maximum amount of CAD 500M. It is important to note that this document is not filed in connection with any actual public offering of securities.
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 Quebec, 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, the Corporation's project financing endeavors, the completion of a satisfactory financing package and the receipt of sufficient proceeds therefrom such that the Corporation will be able to bring its project into commercial production, 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 the Corporation will complete the project financing in a timely manner.
Forward-looking statements contained in this press release include, without limitation, those related to (i) the Corporation's capacity to raise a comprehensive USD 775M to USD 825M project financing package, (ii) the creation of a serviceable financing structure during the initial production years, and (iii) generally, the above "About Nemaska Lithium" paragraph which essentially describe 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 a comprehensive USD 775M to USD 825M project financing package will be put in place and that any component of the financing transactions will be completed, as the next steps and, eventually, the actual results of financing endeavors, as well as future events could differ materially from those anticipated in such statements. 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. 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 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.
Contacts:
Victor Cantore
Investor Relations
514 831-3809
victor.cantore@nemaskalithium.com
Wanda Cutler
Investor Relations
416 303-6460
wanda.cutler@nemaskalithium.com
Fanny-Eve Tapp
Media Relations
B. 514 935 2777 # 204
C. 514 442 0445
fanny-eve.tapp@nemaskalithium.com
www.nemaskalithium.com
