QUEBEC CITY, QUEBEC--(Marketwired - Dec 14, 2017) - Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation")
(NMX.TO)(NMKEF)(N0T.F) is pleased to announce the signing of a definitive agreement for the sale of its 100% interest in the Sirmac Lithium Property ("Sirmac") to Abe Resources ("ABE") (TSX VENTURE:ABE), a mineral resource company specializing in the acquisition, exploration and development of mineral properties. The Sirmac Property consists of 24 mining claims having a total area of approximately 1,100 hectares located approximately 180 kilometres North-West of Chibougamau, in the province of Québec.
Under the agreement, ABE will make a $250,000 cash payment and issue 15,000,000 common shares. For as long as Nemaska Lithium holds at least 10% of ABE common shares, it will be entitled to a pre-emptive right in any future equity offering. The transaction is subject to regulatory approval and closing is expected shortly following receipt of approval.
In addition, Nemaska Lithium will (i) have a right of first refusal to purchase Sirmac concentrate (intended for further processing at its Shawinigan hydro-metallurgical facility); (ii) be entitled to receive a 2% fee, in cash, on all gross proceeds from sales of lithium products originating from Sirmac concentrate and not purchased by the Corporation; and (iii) act as an exclusive marketing agent for all lithium salts originating from Sirmac concentrate and not purchased by the Corporation.
"We believe the transaction will foster and accelerate the development of the Sirmac property, in all likelihood years ahead of when we could develop it, given our focus on building the Whabouchi Mine and Shawinigan plant. Eventually, Sirmac could represent an additional, reliable source of concentrate for Nemaska Lithium. We remain very bullish on the demand for lithium salts and as such, we can contemplate increasing our production capacity in Shawinigan in the future and potentially needing additional sources of concentrate," commented Guy Bourassa, President and CEO of Nemaska Lithium.
In addition, Nemaska Lithium is also pleased to announce that the Québec Ministry of Energy and Natural Resources ("MERN") has issued a mining lease for the Whabouchi Lithium Project in compliance with Section 100 of the Mining Act. This lease comprises the mining and surface rights necessary to exploit the Whabouchi deposit, and is valid for an initial period of 20 years (expiring October 25, 2037). The lease can thereafter be renewed every 10 years for the duration of the mining operation. In addition, Nemaska Lithium has obtained the required leases for the Occupation of the Domain of the State as per Section 239 of the Mining Act, allowing the use of lands for tailings disposal, concentrator and ancillary installations, and other facilities necessary for mining activities.
"The aforementioned leases are important as they allow us to move forward with operating the Whabouchi mine site," commented Simon Thibault, Director of Environment and Social Responsibility at Nemaska Lithium. "To date, we have secured all the major permits and authorizations required for the construction and operation of the Whabouchi Mine and will continue to apply for the few remaining ones as they are required during the development of the mine, as is standard practice in the industry."
About Nemaska Lithium
Nemaska Lithium's vision is to "Facilitate access to green energy through its products and processes, for the benefit of humanity". It intends to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles, energy storage, cell phones, tablets and other consumer products. The Corporation is developing in Québec, Canada, one of the most important spodumene lithium hard rock deposit in the world, both in volume and grade. The spodumene concentrate produced at Nemaska Lithium's Whabouchi mine will be shipped to the Corporation's lithium compounds processing plant to be built in Shawinigan, Quebec. This plant will transform spodumene concentrate into high purity lithium hydroxide and carbonate using the proprietary methods developed by the Corporation, and for which the Corporation holds nine issued patents and several patent applications that are pending in different countries, covering different aspects and improvements of its proprietary technology for preparing high purity lithium hydroxide and carbonate, in an eco-friendly fashion.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release including, but not limited to, any information as to the accelerated development of the Sirmac property and its ensuing benefits for the Corporation as well as the demand for lithium salts, 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. Forward-looking statements contained in this press release include, without limitation, those related to (i) the future sales and marketing arrangements between the Corporation and ABE, (ii) the Sirmac property becoming a reliable source of concentrate for the Corporation, (iii) an eventual increase of the Shawinigan plant capacity, (iv) ABE's plans to build on past works at Sirmac, and (v) 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 forward-looking statements 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.