QUEBEC, QUEBEC--(Marketwired - Feb 2, 2018) - Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation") (NMX.TO)(NMKEF)(N0T.F) is pleased to announce the closing of the sale of its 100% undivided interest in the Sirmac lithium property (the "Property") to ABE Resources Inc. ("ABE") (TSX VENTURE:ABE)(ABEPF), as previously announced on December 14, 2017. The Property consists of 24 map designated mining claims covering approximately 1,100 hectares, located approximately 180 kilometres North-West of Chibougamau, in the province of Québec.
"With the closing of this transaction, we are now the largest single shareholder of ABE which intends to focus on exploring and developing the Property that is located just south of our Whabouchi Lithium Mine," commented Guy Bourassa President and CEO of Nemaska Lithium. "We will be watching their progress with interest and we look forward to seeing the developments."
As part of the consideration payable by ABE, the Corporation received directly from ABE, on January 31, 2018, an aggregate of 15,000,000 common shares in the share capital of ABE, at a price of $0.40 per common share, for total consideration of $6,000,000, which represent 19.18% of the currently issued and outstanding common shares of ABE immediately after the acquisition. The Corporation also received $250,000 and other consideration. Immediately before the acquisition, Nemaska Lithium did not hold any securities of ABE.
Nemaska Lithium has acquired the common shares of ABE in consideration of the sale of the Property and the common shares are presently being heldfor investment purposes, and the Corporation may, from time to time and at any time, acquire additional common shares of ABE and/or other equity, debt or other securities or instruments (collectively, "Securities") of ABE in the open market, in compliance with applicable securities laws, or otherwise and reserves the right to dispose of any or all of its Securities in the open market or otherwise, at any time and from time to time, and to engage in any hedging or similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of ABE and/or its subsidiaries, if any, and other relevant factors.
Nemaska Lithium is incorporated under the laws of Canada and its head office is located at 450, rue de la Gare-du-Palais, 1st Floor Québec, Québec G1K 3X2.
ABE's head office is located at 1019, Boulevard des Pins Val-d'Or, Québec, J9P 4T2.
A copy of the Early Warning Report to which this press release relates can be obtained from Marc Dagenais at 418 704-6038 or firstname.lastname@example.org or on the SEDAR profile of Nemaska Lithium at www.sedar.com.
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 Company 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 its hydrometallurgical plant in Shawinigan using a unique membrane electrolysis process for which the Company 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, ABE's expected progress in exploring and developing the Sirmac lithium property, constitute "forward-looking information" and "forward-looking statements" within the meaning of certain securities laws and are based on expectations, estimates and projections as of the date of this press release, such as, without limitation, the Corporation's overall assessment of the lithium market outlook.
Forward-looking statements contained in this press release include, without limitation, those related to 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 (i) ABE will experience any success in exploring and developing the Sirmac lithium property and (ii) the forward-looking statements featured in this press release will prove to be accurate, as actual results and 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 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.