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Page last updated: July 21, 2022
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https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc.html
NMKEF FINRA deleted symbol:
https://otce.finra.org/otce/dailyList?viewType=Deletions
Nemaska NMX NMKEF shareholders who believe they were aggrieved and looking at a class action, new Facebook private group was created called Recours collectif Nemaska class action ?.
Nemaska Lithium accepts bid from Orion, IQ and Pallinghurst https://www.miningweekly.com/article/nemaska-lithium-accepts-bid-from-orion-iq-and-pallinghurst-2020-08-25
Based on the terms of the bid and the consideration to be received by Residual Nemaska Lithium, holders of the corporation’s common shares will not receive any payments for, or distributions on, their common shares in connection with the CCAA proceedings, nor will they hold any interest in New Nemaska Lithium following the completion of the plan of compromise or arrangement.
MONTREAL, Aug. 24, 2020 (GLOBE NEWSWIRE) -- Nemaska ??Lithium Inc. (“Nemaska Lithium” or the “Corporation”) announces today that it has accepted a sale proposal structured as a credit bid (the “Bid”) from a group (the “Buyers’ Group”) made up of the Corporation’s largest secured creditor, Orion Mine Finance (“Orion”), Investissement Québec and The Pallinghurst Group, acting through a new entity named Quebec Lithium Partners (The Pallinghurst Group collectively with Investissement Québec being hereinafter, the “Sponsors”), at the conclusion of its previously announced Sale or Investor Solicitation Process (the “SISP”) under the Companies’ Creditors Arrangement Act (the “CCAA”). https://finance.yahoo.com/news/nemaska-lithium-accepts-sale-proposal-160000628.html
"Nemaska Lithium Sells Assets, Leaves Nothing For Shareholders"
https://thedeepdive.ca/nemaska-lithium-sells-assets-leaves-nothing-for-shareholders/
Trashy Canadian management squanders yet another exceptional opportunity!
Rinse, repeat. More failures to follow.
Typical Canadian government backed debacle.
Yeah,China 6% growth and that slow,problematic....US 1-2% growth and we are doing great?
China's GDP Growth Slowest Since 1990
A bruising trade war with the U.S. and sputtering investment saw China's GDP growth expand by 6.1% last year, as a slowdown rippled through many sectors of the economy. While that was the lowest level in nearly three decades, the figure met expectations, falling within the government's target of 6% to 6.5% for 2019. Trade deal help... Beijing is counting on improving consumer confidence and consumption to play a major role in boosting growth this year, according to Ning Jizhe, China's chief statistician.
https://seekingalpha.com/news/3532611-chinas-gdp-growth-slowest-since-1990
$NMKEF Tier_Change: OTCQX International to Grey Market
OTCM Link
https://www.otcmarkets.com/stock/NMKEF/disclosure
But people keep saying that Han Schmucko is going to build an EV empire in China...
That's CNBC talking,as usual,they down play everything China does.The US can only dream of having the growth China has had or is having.China grows at 6%,that's not good,US grows at 1-3% and they are booming!Of course they are the bad guys,so ignore facts.
The EV story is very bearish right now."China races to build its own Tesla as economy slows and subsidies dry up" https://www.cnbc.com/2019/12/26/china-races-to-build-its-own-tesla-as-economy-slows-subsidies-fade.html
“What was not in the business plans was that China would have its first fully blown automotive downturn in Chinese history,” he told CNBC in late November.
Usually when a problem like we see with NMKEF happens,lawsuits are on the horizon.
Yes, I had read it too. Thanks
Nemaska Lithium files for bankruptcy protection https://seekingalpha.com/news/3528188-nemaska-lithium-files-for-bankruptcy-protection?utm_medium=email&utm_source=seeking_alpha
I also sold it a long time ago. I made a nice profit when I sold the first time, but I bought again on the dip and lost. Overall, I ended up with a small profit. I consider myself lucky in deciding to exit when I realized that management kept mishandling budget estimates and finances. I am truly sorry for those that are stuck and I do wish them the best.
Nope, management likely shielded; supporting lucrative takeover giveaway!
In a just world, sack 'em. Bay Street boys say never.
Retail shareholders brunt the burden, especially in Canada.
The only way to save NMKEF is to clean house,dump current management.With all the PRS they put out with their big plans and then here we are today after the already having need for millions more in financing,now they are asking for protection from their own mistakes,because it appears as though no one is willing to risk more funding into this black hole of mistake after mistake.
Management grew fat and lazy amid regulatory whitewash!
Canada has become the new Congo regarding mining investments.
Lots of talk, followed by the evil blind eye syndrome.
Some time ago I sold because I thought that there were too many mistakes being made involving financing.I see my fears are confirmed,what a shame,they are ruining a company with such great potential.
Yet another Canadian government backed mining company embarrassment/failure!
Nemaska Lithium Files for Creditor Protection Under
the Companies’ Creditors Arrangement Act
Montréal, Québec, December 23, 2019 – Nemaska Lithium Inc. (the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) announced today that its Board of Directors has authorized the Corporation and its subsidiaries to bring an application in the Superior Court of Québec to seek protection from creditors under the Companies’ Creditors Arrangement Act (“CCAA”) to give the Corporation sufficient time to complete its re-financing efforts to allow for the completion of the construction of its Whabouchi project, which are required further to the cost re-assessment previously announced.
After careful consideration of all available alternatives following thorough consultation with its legal and financial advisors, the Board of Directors of the Corporation, following recommendation from its special committee, determined that it was in the best interests of the Corporation and all of its stakeholders to file for an application for creditor protection under the CCAA.
The initial Court order sought is expected to provide a stay of creditor claims and the exercise of contractual rights with a view to provide the necessary protection to continue the Corporation’s ongoing strategic review process under the oversight of the Board of Directors and with the advice of the Corporation’s professional advisors. In this regard, the Corporation anticipates that it may seek the approval of the Court to initiate a formal investor solicitation process to secure additional financing, sell assets, enter into a joint-venture, or a combination thereof, at a subsequent hearing before the Court. This process is intended to generate interest in either the business or the assets of the Corporation, or in a recapitalization of the Corporation, with the goal of maximizing return in respect of the Corporation's assets and creating the foundation of a plan of compromise or arrangement for all stakeholders of the Corporation.
The Corporation will provide a further update on these matters once more information is available.
Trading in the common shares of the Corporation on the Toronto Stock Exchange (“TSX”) is expected to be halted and it is anticipated that the trading thereof will continue to be halted until a review is undertaken by the TSX regarding the suitability of the Corporation for listing on the TSX.
All statements, other than statements of historical fact, contained in this press release including, but not limited to, those relating to the CCAA application and proceedings, operations of the Corporation, liquidity and the ability of the Corporation to meet its obligations 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, the granting of the initial Court order by the Québec Superior Court and halt of trading on the TSX.
Forward-looking statements contained in this press release include, without limitation, those related to (i) the outcome of the initial Court order, (ii) the obtaining of the approval of the Court to initiate a formal investor solicitation process to secure additional financing, sell assets, enter into a joint venture, or a combination thereof, (iii) the ability of the Corporation to secure additional financing, (iv) halt of trading on the TSX and any review by the TSX regarding the suitability of the Corporation for listing on the TSX, and (v) the ability of the Corporation to continue preserving available cash. 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. In addition, there is no assurance that there will be any residual value for shareholders under the CCAA process.
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 and/or the electrochemical plant in Shawinigan will be commissioned and will begin production, as future events could differ materially what is currently anticipated by the Corporation. In addition, there can be no assurance that the CCAA proceedings will result in the maximization of the return in respect of the Corporation’s assets and those of its subsidiaries.
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 September 30, 2019, 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.
– 30 –
FOR FURTHER INFORMATION, PLEASE CONTACT:
Wanda Cutler
Investor Relations
416 303-6460
wanda.cutler@nemaskalithium.com
Gabrielle Tellier
Media Relations
514 348-0466
gabrielle.tellier@nemaskalithium.com
www.nemaskalithium.com
new multi-year lows as Nemaska Lithium plans key project shutdown, still seeks capital
Nemaska Lithium plans key project shutdown, still seeks capital
Nov. 15, 2019 1:31 PM ET|About: Nemaska Lithium Inc. (NMKEF)|By: Carl Surran, SA News Editor
Nemaska Lithium (OTCQX:NMKEF -3.7%) says it will place its Whabouchi project in Quebec on care and maintenance before the end of the year, sending shares to new multi-year lows.
Nemaska says it is still working with investment firm Pallinghurst and other strategic partners to secure financing for the project.
As of Aug. 31, the company had incurred C$392M in cost overruns on total project budget of C$1.27B.
https://seekingalpha.com/news/3519952-nemaska-lithium-plans-key-project-shutdown-still-seeks-capital
Nemaska Lithium Provides Update on Whabouchi Project
9:28 AM ET 11/15/19 | GlobeNewswire
Nemaska Lithium Provides Update on Whabouchi Project
-- Efforts to complete an optimized project financing structure continue
-- Project investment at both sites totals $392 million as at September 30,
2019
-- Temporary shutdown of activities will be completed shortly at the
Whabouchi mine
-- Phase 1 plant to fulfill last orders before beginning of the shutdown
QUEBEC CITY, Nov. 15, 2019 (GLOBE NEWSWIRE) -- Nemaska Lithium (Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation") (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) today provides an update on its Whabouchi Project and the status of its ongoing efforts to complete the project financing. This update follows the filing, on November 14, of the financial statements and Management Discussion and Analysis (MD&A) for the first quarter, ended September 30, 2019, of its financial year. Nemaska Lithium also takes this opportunity to provide details on the activities at the mine site and the Phase 1 plant.
"We continue working with Pallinghurst and our other strategic partners on completing an optimized project financing structure to be submitted to the shareholders' approval as soon as possible," said Guy Bourassa, President and CEO of Nemaska Lithium. "Over the past month, our teams have worked diligently to prepare the sites for temporary shutdown, in anticipation of an orderly resumption of activities that will minimize delays once financing has been secured and the construction schedule is confirmed."
Annual General Meeting of Shareholders
As a result of the ongoing discussions with The Pallinghurst Group ("Pallinghurst"), Nemaska Lithium has requested and obtained approval from the capital markets authorities to hold its shareholders Annual General Meeting ("AGM") in early 2020. If appropriate, the Corporation may elect to combine the AGM with the Special Meeting regarding Pallinghurst's potential investment under a court approved plan of arrangement under the Canada Business Corporations Act ("CBCA"). Details about the AGM and/or Special Meeting will be communicated to shareholders when available.
Discharge of the security which secured the Bonds
As regards the Corporation's application filed on September 16, 2019 with the Superior Court of Québec, in connection with its arrangement proceedings under the CBCA, which seeks the discharge of the security which secured the $350 million US senior secured bonds (the "Bonds"), the hearing of such application is set for January 2020, in Montréal. It is the Corporation's view that the Bonds were discharged. The Trustee considers that the Bonds were not discharged, and that the Corporation owes penalties to the holders of the Bonds. Readers may refer to the press releases of Nemaska Lithium dated September 17 and 25, 2019 for further information.
Financial Highlights
On November 14, 2019, Nemaska Lithium filed its first quarter financial statements as well as Management discussion and analysis (MD&A) on SEDAR. As at September 30, 2019, the Corporation had on hand approximately $77 million in unrestricted cash and cash equivalents to finance its current activities, plus cash and cash equivalents of $40 million that Nemaska Lithium has agreed, for the moment, to maintain in a cost overrun account, even if the Bonds were discharged. As at September 30, 2019, cumulative incurred capital investment totalled $392 million on a total Whabouchi Project budget of $1.269 billion, including contingency. Moving forward the Corporation has taken a number of additional proactive steps to preserve cash while it completes its project financing.
Construction Report Selected Information on Expenditures
All amounts are in Canadian dollars
(in millions, including contingency)
Incurred and
Remaining CAPEX
as at September
30, 2019, per NI
43--101 Technical Incurred as at Remaining as at
Report estimate, September 30, September 30,
July 2019 Total 2019 2019
Whabouchi: 448 261 187
Plant: 821 131 690
-------- ----------------- -----------------
Total: 1,269(1) 392 877
(1) The Total CAPEX includes amounts for corporate owners' costs, which are .APPROX.$42 million for Whabouchi and .APPROX.$29 million for the Plant.
Project Standby Readiness
Equipment deliveries to the Whabouchi site have been completed. In the coming weeks, the Whabouchi site winterization and orderly demobilization will be completed. A small crew will conduct care and maintenance activities as well as ensuring site security. Detailed engineering will be pursued, at an adapted pace, to continue the development of project until financing is secured for both the Whabouchi mine and the Shawinigan plant.
The shutdown of the Phase 1 plant will begin in a few weeks, with a view to ceasing operations by December 31, 2019. The team is also working to fulfill the last orders as well as preparing samples of lithium hydroxide to continue product qualification trials with potential end users. In operation since February 2017, this demonstration plant enabled the Corporation to showcase the reliability of its patented process and the exceptional quality of its product intended for the lithium battery market.
Nemaska Lithium has taken the necessary steps to ensure the preservation of its assets and to comply with regulatory, safety and environmental obligations at both sites for the duration of the project standby phase.
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. This lithium salt is 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, the Corporation 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.
The Corporation 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 SmallCap Index. For more information, visit www.nemaskalithium.com.
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 (A) the additional capital required to enable the Corporation to complete the Project's construction, (B) the eventual conclusion of a definitive agreement with Pallinghurst and other strategic partners and closing of the investment, (C) the expected resumption of construction and commissioning, and (D) the outcome of the application filed by Nemaska Lithium on September 16, 2019 with the Superior Court of Québec, in connection with its arrangement proceedings under the Canada Business Corporations Act, seeking the discharge of the security which secured the Bonds, 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, reaching a definitive agreement with Pallinghurst and other strategic partners in a timely manner and satisfying all closing conditions, and the obtaining of the additional capital required to fulfill the conditions precedent to receive the remaining proceeds from the Project financing, being the second tranche payment under the Orion Streaming facility.
Forward-looking statements contained in this press release include, without limitation, those related to (i) the Corporation completing an optimized project financing structure to be submitted to the shareholders' approval as soon as possible, (ii) the eventual definitive agreements to implement Pallinghurst's investment proposal and closing of the investment under a court approved plan of arrangement, (iii) the orderly resumption of activities that will minimize delays once financing will have been secured, (iv) holding the annual shareholders' meeting in 2020 and combining same with the shareholders' special meeting re Pallinghurst's potential investment under a CBCA arrangement, (v) the CAPEX estimates, (vi) the Corporation reaching an agreement with Pallinghurst that will satisfy all parties, including its own shareholders, (vii) the Corporation taking the necessary steps to ensure asset preservation, (viii) the Whabouchi site winterization and orderly demobilization to be completed shortly, and the Phase 1 plant shut down to commence shortly, (ix) the continuance of detailed engineering to continue the development of the project until financing is secured, (x) the Corporation to eventually be in position to restart construction work quickly when financing is completed, (xi) the outcome of the application filed by Nemaska Lithium on September 16, 2019 with the Superior Court of Québec, in connection with its arrangement proceedings under the Canada Business Corporations Act, seeking the discharge of the security which secured the Bonds, and (xiii) 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
(MORE TO FOLLOW) Dow Jones Newswires
November 15, 2019 09:28 ET (14:28 GMT)
Good or bad, we report it. Sooner or later, this one will come to fruition.
I agree,the US is deteriorating on different levels,politically,socially and economically.China looks at long term benefits,plans ahead.I don't believe what the press says about their economy,since telling the truth is a thing of the past,and propaganda is their number one priority.
The U.S. is an aging and dying empire.China has room to grow but the global economy is struggling and it could take a period of debt destruction and even population reduction to see global growth achieve higher levels.We are in a very dangerous situation few can allow themselves to imagine let alone believe.
Let's not forget the big difference in the population and China's development is one the US can only dream of.Tale a look at China's infrastructural changes over the last 30 years,and then look at the US'.
What are the sources of this information?
China’s Gross National Income$14,358 (GNI) per capita This figure falls between the per capita income of other developing countries like South Africa ($13,139) and Brazil ($15,377), but is significantly lower than the $42,355 average of OECD economies.
Too funny,their growth rate to be only 5.9%,while the US can dream of having anything near that rate of growth.
China's GDP growth grinds to near 30-year low as tariffs hit production https://www.reuters.com/article/us-china-economy-gdp/china-third-quarter-gdp-grows-6-0-year-on-year-misses-expectations-idUSKBN1WX05A
China’s trading partners and investors are closely watching the health of the world’s second-largest economy as the trade war with the United States fuels fears about a global recession.
“Given exports are unlikely to stage a comeback and a possible slowdown in the property sector, the downward pressure on China’s economy is likely to continue, with fourth-quarter economic growth expected to slip to 5.9%,” Nie said.
Even recent signs of breakthrough in the protracted trade war between Beijing and Washington are unlikely to change the economic outlook any time soon.
......growth in other products such as cement, crude steel and cars slowed further.
Big money talks to big money. They've won!
Canada mining regulators only concern is getting new mines built.
Right, wrong, fair?? Winners, losers??? That's not their problem.
Common shareholders played for fools again. Rinse/Repeat.
That's why Canada fronts so much money to start 'em.
I suspect the investors who now hold a large stake in Nemaska are asking for a larger piece of the company or profits,or both,before any financing can be agreed upon.
AKA... What Financing? Incompetence remains firmly in place!
What's next, 24hr donation hotline? Selling 'I dig it' lithium buckets w/ shovel on QVC?
Doesn't sound good
In other words,we have a problem with the financing.
News - Nemaska Lithium Provides Update on the Whabouchi Project
October 15, 2019 11:00 ET | Source: Nemaska Lithium Inc
The Corporation needs to downsize by letting go of 64 employees
The Phase 1 Plant will cease operations at the end of December 2019
Activities at Whabouchi will slow down until the winterization of the site
QUEBEC CITY, Oct. 15, 2019 (GLOBE NEWSWIRE) -- Nemaska ?Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) is announcing that it must adjust the implementation of its project, mainly because of delays to finalize its financing. As a result, the Corporation must downsize by letting go of 64 employees. This difficult decision comes after a rigorous review of the current situation and is aimed at both the optimization of current cash flow and the continuation of the project.
Nemaska Lithium is still confident in its ability to successfully complete the project. However, the Corporation cannot currently specify the precise date for closing the required financing, as no definitive agreement has yet been concluded with The Pallinghurst Group (“Pallinghurst”), to which the finalization of the project’s implementation timeline is directly connected. In this context, the Corporation is obliged to carry out a collective dismissal, as it expects that mine and plant production preparation activities will need to be slowed down pending the completion of financing. Depending on the site, the dates of employment termination will occur between the end of October and the end of December 2019.
“We have always asserted that we recruited the best talent to make this project a success. We are still deeply convinced of this, which makes this decision all the more difficult. As we cannot confirm the timeline for the resumption of construction, and although negotiations with Pallinghurst are progressing well, this is the responsible decision to be made,” says Guy Bourassa, President and CEO of Nemaska Lithium.
The Corporation remains committed to completing the required financing in order to accelerate the deployment of its project as soon as possible. It will also pursue its efforts to rapidly obtain a favourable decision from the Superior Court of Québec following its application in connection with its arrangement proceedings and seeking the discharge of the security relating to the USD 350M Bonds, which were reimbursed as prescribed.
Activity implementation rhythm adjusted in Whabouchi and Shawinigan
Over the next few weeks, the employees working at the Whabouchi mine will finish winterizing the site and assist the construction crews in completing certain work before the beginning of the winter season. Nemaska Lithium will thereafter see to preserve its assets and ensure the regulatory compliance of its facilities.
Having fulfilled the main objectives for its construction, the Shawinigan Phase 1 Plant will continue its activities until its complete shutdown at the end of December 2019. This demonstration plant, in operation since February 2017, has been a major asset for the development of the Whabouchi project, having showcased the reliability of its patented process and the exceptional quality of its product, intended for the lithium battery market.
“Once financing is completed, we will have a better visibility on the timeline for the implementation of the project and the resumption of more sustained activity. It is now time for us to roll up our sleeves, as we know how to, and continue moving forward in order to ensure the orderly resumption of activities with minimal delay when the time comes. With our team and partners, we are going to continue working relentlessly to make Nemaska Lithium a success. We sincerely thank the employees who will be leaving us and hope to see many of them back on our team once operations resume,” concluded Mr. Bourassa.
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. This lithium salt is 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, the Corporation 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.
The Corporation 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 SmallCap Index. For more information, visit www.nemaskalithium.com.
Nemaska Lithium Provides an Update on its Whabouchi Project and Negotiations with Pallinghurst Group
Nemaska Lithium and Pallinghurst making progress furthering the proposed financing and extend the exclusivity negotiation period until December 31, 2019,
Pallinghurst expressed its continued commitment to work cooperatively with the Corporation and its principal shareholders to consider optimized capital structure
Project Investment Totals CAD 361M as at June 30, 2019, and CAD 377M as at August 31, 2019
Whabouchi engineering and construction have progressed well and engineering at Shawinigan has also advanced positively
P1P continues to deliver high-quality product
QUEBEC CITY, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) today provides an update on the progress of its Whabouchi Project as well as the constructive continuation of the financing discussions with The Pallinghurst Group (“Pallinghurst”). This update is carried out following the filing, on September 30th, of its Annual Financial Statements, Annual Information Form and Management Discussion and Analysis (MD&A) for the year ended June 30, 2019, and the signing of an agreement with Pallinghurst which extends until December 31, 2019, the exclusivity of the period to complete the financing from Pallinghurst. The Corporation’s President and CEO, Mr. Guy Bourassa, its Chief Financial Officer, Mr. Steve Nadeau, as well as Pallinghurst Co-Founder and Managing Partner, Mr. Arne H. Frandsen, will be hosting an online conference call today, October 8, 2019, at 11:00 AM EDT. The instructions to access the call are indicated below.
“Our focus for the past weeks has been to work assiduously with Pallinghurst on its investment proposal. Discussions are progressing well, and we have every reason to believe that we have met all their requirements from a technical due diligence standpoint. We are working closely with our advisors to help Pallinghurst complete its entire review in a timely manner to reach an agreement that will satisfy all parties, including our shareholders. This is why we have accepted to extend to December 31, 2019, the exclusivity period for negotiation and closing of their investment” said Guy Bourassa, President and CEO of Nemaska Lithium. “In the meantime, I am very proud of the work done by our teams in the field. Even at a reduced pace of work, progress at the Whabouchi mine has been significant and demonstrates the quality and effectiveness of our Construction and Operations teams. In Shawinigan, detailed engineering is on schedule, and the Phase 1 plant steadily delivers to potential clients as our team continues to improve our processes in preparation for the commercial phase. The dedication of our team to make a great success out of this project remains unwavering.”
Nemaska Lithium and Pallinghurst Making Progress Towards Reaching an Agreement
Since the acceptance by Nemaska Lithium of an investment proposal of up to CAD 600 M by Pallinghurst on July 19, 2019, productive discussions have taken place between both groups’ specialists in order to complete the due diligence and to advance the negotiations with the aim of reaching an agreement that will satisfy both parties, in a timely manner, in respect of a transaction to be implemented under a court approved plan of arrangement under the Canada Business Corporations Act subject to shareholder approval. Exclusive negotiations will continue with a view of closing the investment before December 31, 2019, in order to give all parties, the time and flexibility to conscientiously complete this exercise and provide additional details to shareholders as soon as available.
“We are pleased and impressed by our review of Nemaska Lithium thus far and satisfied with the progress of discussions between our teams. We remain fully committed to continue working cooperatively with Nemaska Lithium in pursuing our proposed investment and, furthermore, are open to explore with the Corporation’s largest shareholders an additional capital injection to potentially substitute certain elements of the current financing structure,” declared Arne H. Frandsen, Co-Founder and Managing Partner of Pallinghurst.
Mr. Frandsen continued, “We appreciate the constructive and open dialogue we have had with Mr. Bourassa and his team. Based on our due diligence review thus far, we continue to believe that Nemaska Lithium has a world-class spodumene deposit, a proven lithium salts patented process, as well as a highly qualified workforce. These assets positions Nemaska Lithium as a key player in the rapidly growing lithium-ion battery and energy storage industry. We continue to focus on developing key strategic partnerships across the different battery materials, and we believe that, for lithium, Nemaska Lithium is the right partner with whom this strategy should be pursued.”
Mr. Bourassa added, “We are working closely with our partners and advisors to examine the best options on the table to ensure the Corporation’s sustainability and maximize the use of cash on hand pending financing. We are confident that we have the right partners in place to complete a more favorable capital structure for the project that will allow us to bring it to commercial production in time to benefit from the market expansion anticipated in the years to come. As the development of a local lithium-ion battery industry is more than ever promoted by governmental authorities around the world, we are convinced that Nemaska Lithium’s promising project is still in the best position to catalyze a value chain for this industry in Québec and Canada.”
Financials Highlights
On September 30, 2019, Nemaska Lithium filed its annual financial statements, Annual Information Form and Management discussion and analysis (MD&A) on SEDAR. As at June 30, 2019, the Corporation had on hand CAD 128M in unrestricted cash and cash equivalents to finance its current activities, plus restricted cash and cash equivalents of CAD 40M placed in a cost overrun account.
As at June 30, 2019, cumulative incurred capital investment totalled CAD 361M on a total Whabouchi Project budget of CAD 1.269B, including contingency. Although advancing the Whabouchi Project at an adjusted pace since February 2019, the Corporation has incurred approximately 53% of the expenditures at the Whabouchi site, and approximately 15% of the expenditures at the Shawinigan site.
As at August 31, 2019, cumulative incurred capital investment totalled CAD 377M on a total Whabouchi Project budget of CAD 1.269B, including contingency. Although advancing the Whabouchi Project at an adjusted pace since February 2019, the Corporation has incurred approximately 55% of the expenditures at the Whabouchi site, and approximately 16% of the expenditures at the Shawinigan site.
The Corporation has fully paid the cumulative required CAD 9.2M deposit in respect of its obligation related to the estimated Whabouchi site restoration costs under the Mining Act.
Construction Report Selected Information on Expenditures
All amounts are in Canadian dollars
(CAD in millions, including contingency)
Incurred and Remaining CAPEX as at June 30, 2019,
per NI 43–101 Technical Report estimate, July 2019
Total
Incurred as at June 30, 2019
Remaining as at June 30, 2019
Whabouchi:
448
238
210
Plant:
821
123
698
Total:
1,2691
361
908
Incurred and Remaining CAPEX as at August 31, 2019,
per NI 43–101 Technical Report estimate, July 2019
Total
Incurred as at August 31, 2019
Remaining as at
August 31, 2019
Whabouchi:
448
247
201
Plant:
821
130
691
Total:
1,2691
377
892
1The Total CAPEX includes amounts for corporate owners’ costs, which are ˜CAD 42 M for Whabouchi and ˜CAD 29 M for the Plant.
Project Update
Construction at the Whabouchi mine continued per the adapted pace of the recent months. Critical earthworks and concrete foundations are substantially completed. Crushing area structural steel installation is also substantially completed, and conveyor installation has begun. Most of the process equipment has been received, and whenever possible it has been installed or appropriately stored.
Mine employees have been actively working since May on pre-production activities such as overburden removal, drilling and blasting to generate the aggregate material required for roads, storage areas and other works necessary for the development of the mine infrastructures. The Corporation is pleased to report that, as of October 7, 2019, there has been no recordable incident for the first 161 days worked at the Whabouchi mine. Readers are invited to click here to view our Mine Construction photo gallery.
In Shawinigan, now that the updated NI 43–101 Technical Report has been filed, detailed engineering for the commercial electrochemical plant is on schedule and our team continues working with the independent engineering firms involved. Meanwhile, the Phase 1 plant continues to produce high-quality lithium hydroxide at a sustained pace, and the product continues to be of great interest to potential customers across the world. The extension of the demonstration plant's activities, until December 2019, will allow for continued improvement to Nemaska Lithium's patented and proven process, providing opportunities to de-risk operations processes in anticipation of the commercial plant start-up.
Conference Call
Nemaska Lithium will host a conference call on October 8, 2019, at 11:00 AM EDT. The Corporation’s President and CEO, Mr. Guy Bourassa, and Chief Financial Officer, Steve Nadeau, and Co-founder and Managing Partner of Pallinghurst, Mr. Arne H. Frandsen, will discuss the announcement. The call can be accessed at the following:
Online
https://edge.media-server.com/mmc/p/i7vkjwzz
Dial information
US/CANADA Participant Toll-Free Dial-In Number: (866) 353-6129
US/CANADA Participant International Dial-In Number: +1 (409) 217-8084
Conference ID: 6139128
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. This lithium salt is 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, the Corporation 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.
The Corporation 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 SmallCap Index. For more information, visit www.nemaskalithium.com.
About The Pallinghurst Group
The Pallinghurst Group is a London-based leading strategic investor in the global metals and mining sector with significant development, operational and financial expertise in mining. For the past 12 years, Pallinghurst has put USD 2B of equity capital to work in a number of mining projects. As a hands-on investor, Pallinghurst seeks to act as a catalyst for developing and unlocking value for the benefit of all stakeholders. Pallinghurst’s investors consist of blue-chip family offices, sovereign wealth funds as well as specialized mining investors.
https://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=6416095285168122&topic=NMKEF&symbology=null&cp=null&webmasterId=90338#
Given financial desperation... Negotiation??? Yea right. Try nightmare!
Another jewel from hopeless Nemaska... I am glad Igot out of this POS stock long time ago, but I am sorry for the shareholders that remain.
Thank you Twister
NEWS... Notice regarding USD 350M Senior Secured Bonds!
Nemaska Lithium receives Notice from the Nordic Trustee regarding its USD 350M Senior Secured Bonds
Nemaska ??Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) informs the market that it has been notified today of a notice published by Nordic Trustee AS who is holding in escrow the USD 350M proceeds from the Senior Secured Bonds (“Bonds”). The notice states that a written Bondholders` resolution seeking approval of Bondholders to instruct Nordic Trustee AS to refrain from effecting, among other things, any prepayment of the Bonds was approved with the requisite majority.
As previously disclosed, Nemaska Lithium is of the opinion that the resolution, published without the Corporation`s consent, has no legal effect on the Corporation or the Bond terms, as it purports to amend the Bond terms without the consent of the Corporation. Nordic Trustee AS has previously confirmed in writing to the Corporation that the deadline in Article 13.9 of the Bond terms to effect a prepayment of the Bonds expired on September 13, 2019. On this date the Bonds should have been prepaid at par together with accrued interest from the escrow account controlled by Nordic Trustee AS. The Corporation considers that Nordic Trustee AS is in breach of its obligations under the Bond terms and will take all measures available to it to protect its interests. Investors may refer to the press release of Nemaska Lithium dated September 17, 2019 for further information regarding the content of this press release.
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. 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, the Corporation 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.
The Corporation 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.
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 prescribed prepayment of the Bonds, breach of obligations by Nordic Trustee AS under the Bond terms and that the resolution published by Nordic Trustee AS has no legal effect for the Corporation or under the Bond terms, 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, the application of Article 13.9 of the Bond terms and prescribed prepayment process of the Bonds’ nominal amount and accrued interest.
Forward-looking statements contained in this press release include, without limitation, those related to (i) the potential dispute with respect to the timing of the prescribed prepayment of the Bonds, (ii) and 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 prescribed prepayment of the Bonds will not result in litigation involving Bondholders, Nordic Trustee AS and/or the Corporation, notably in light of the notice published by Nordic Trustee AS and response of the Corporation claiming the invalidity of the resolution and breach of obligations of Nordic Trustee AS under the Bond terms. 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 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 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:
Victor Cantore
Wanda Cutler
Investor Relations
Investor Relations
514 831-3809
416 303-6460
victor.cantore@nemaskalithium.com
wanda.cutler@nemaskalithium.com
Gabrielle Tellier
Media Relations
514 348-0466
gabrielle.tellier@nemaskalithium.com
https://ih.advfn.com/stock-market/TSX/NMX/stock-news/80801870/nemaska-lithium-receives-notice-from-the-nordic-tr
Perhaps takeover brewing... Call in shares for $.05-$.10/share!
For now, more likely just burning time and money until/into hopelessness.
Then the real action is more likely to emerge from the burning ashes.
Mine will be built.
And money will be made.
So sorry, common shareholder.
The fact that they are still negotiating tells me a lot.There will be dilution again.
They need money; on about any terms. Not good!
About any offer is now an offer they can't refuse.
Besides, it all pays the same for the suits.
Think loan shark; just good business.
Shares and fancy talk remain.
Which would you take?
Hmmmm,so is issued shares in the future??
Enter lipstick/pig motif... Imagine increased lender leverage!
They convinced me that with all their positive thinking,it is nothing more than what is called"lip service".This is the middle of Sept 2019,and they still can't find the funding needed,after they discovered(LOL,surprise,surprise)shortfalls in the construction plans.
Should make for great trading with their games!
Careful after the happy talk starts.
Think musical-chairs endings.
And check out their new outstanding share situation vs value.
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Listed as the top Lithium discovery in North America this company is in the process of
presenting a feasibility study for the mine and mill
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More Details
Since 2008, Nemaska Exploration is a leading player in the mineral exploration in Quebec (Canada), a province known for the exploration and mining investment .
Nemaska currently focusing its efforts on two mining projects in scope:
1.Whabouchi , a property rich in lithium and beryllium
2.Lac Levac property , rich in nickel , with copper and PGE.
Nemaska owns many high potential land mines - which are full of lithium in beryllium and nickel - including the formation of the Lake Mountains, a vast area, easy road access and highly reputed for its greenstone belt volcanogenic polymetallic .
Nemaska Exploration Inc. is a mineral exploration company involved in the James Bay region of Quebec. Its main assets are the Whabouchi (about 1,716 hectares), Lac Levac (about 9,200 hectares), Lac Arques (about 39,470 hectares), and Lac des Montagnes (about 12,740 hectares) properties, all 100 % owned. These properties are contiguous and cover about 85 km of the Lac des Montagnes green belt polymetallic formation. They are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (380 km) and are located near the Cree community of Nemaska and the Nemiscau airport.
We operate the James Bay region of Quebec, most notably that of Nemaska over 70 km wide along the Formation of Mountain Lake,
easily accessible and recognized as a greenstone belt polymetallic volcanogenic.
Nemaska owns 100% of its five properties:
Whabouchi (lithium / beryllium)
Lac Levac (nickel)
Arques Lake (nickel, copper, PGE)
Lake Mountain (nickel, copper, chromite)
Kativik (rare earths, uranium)
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http://www.nemaskaexploration.com/fr/
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The number of shares issued and outstanding is now 65,834,206.
http://www.nemaskaexploration.com/documents/Rapport_Financier_Bilingue_30sept2010.pdf
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News
click headline for news link
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Mar 24
Nemaska's Whabouchi Lithium Project Continues To Produce Wide High-Grade Drill Results
Mar 8
Nemaska Exploration Reports Wide High Grade Channel Samples From Whabouchi Lithium Project
Jan 19
Jan 11
Nemaska Exploration Provides Update on Drill Program at Its Whabouchi Lithium/Beryllium Project
Jan 4
Nemaska Exploration Announces $3.7 Million Private Placement With Chinese Strategic Investor
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Roadshow setup
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