Nemaska Lithium Signs Supply Agreement for Spodumene Concentrate
QUÉBEC CITY, Quebec, May 29, 2018 (GLOBE NEWSWIRE) — Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX:NMX) (OTC:NMKEF) is pleased to announce the signing of a supply agreement (the “Agreement”) of spodumene concentrate with Hanwa Co., Ltd. (“Hanwa”) acting as agent for General Lithium Corp. (“GLC”), the latter having signed the Agreement as intervenor.
Under this Agreement and through its wholly-owned subsidiary Nemaska Lithium Whabouchi Mine Inc., Nemaska Lithium will supply a significant quantity of spodumene concentrate on a take-or-pay basis at a market priced-based formula, at the time of delivery. The supply period will commence after the construction of the Whabouchi Mine and continue up to the full ramp-up of the electrochemical plant in Shawinigan.
“We are very pleased to conclude this commercial relationship with Hanwa, a leading, Japan-based, global trading company, and GLC, a China-based company specialized in R&D, production and sales of lithium products and one of the top class spodumene converters in China”, declared Guy Bourassa, President & Chief Executive Officer of Nemaska Lithium.
Bourassa continued, “Our business plan remains to be vertically integrated and to sell lithium hydroxide and lithium carbonate from our electrochemical plant in Shawinigan; however, given that the Whabouchi mine will be in production about a year before the electrochemical plant is ready to be commissioned, we decided to be opportunistic and sell spodumene concentrate in the interim, effectively enabling us to generate revenue by the last quarter of 2019.”
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 www.nemaskalithium.com or twitter.com/Nemaska Lithium.
About Hanwa and GLC
Hanwa is a leading, Japan-based global trading company, operating in a wide range of fields. Since its inception in 1947, Hanwa has achieved steady growth in a diverse range of its businesses such as steel, metals and alloys, non-ferrous metals, food products, petroleum, chemicals, lumber, machinery and others, whilst it has been specifically focusing on the feedstock for the growing rechargeable battery industry. Based in China, GLC was founded in 2006. It is specializing in R&D, production and sales for basic lithium products and series lithium-battery new materials; its products are widely used in lithium-battery industry and centre air-conditioner industry.
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 sale by the Corporation and the purchase by Hanwa, on a take-or-pay basis, of a significant quantity of spodumene concentrate, 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, (a) the conclusion of all components of the project financing and receipt of all proceeds therefrom, and (b) the construction and start of commercial production at the Whabouchi mine.
Forward-looking statements contained in this press release include, without limitation, those related to (i) the commencement of the supply period after the construction of the Whabouchi mine and its continuation up to the full ramp-up of the Shawinigan plant, (ii) the Corporation’s business plan to be vertically integrated and sell lithium hydroxide and lithium carbonate, (iii) the Whabouchi mine being in production a year before the commissioning of the Shawinigan plant, (iv) the Corporation generating revenue by the last quarter of 2019, and (v) 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 will be brought to commercial production, as results from the Corporation’s project financing endeavors and future events could differ materially what is currently anticipated by the Corporation.
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 endeavors to complete its project financing and, more generally, its 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 5, 2017 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:
B. 514 935 2777 # 204
C. 514 442 0445