Agreement in Principle for Supply of Lithium Hydroxide!
QUEBEC, QUEBEC -- (Marketwired) -- 04/27/18 -- Nemaska Lithium Inc.
("Nemaska Lithium" or the "Corporation") (TSX:NMX) (OTC:NMKEF) and
Northvolt AB ("Northvolt") are pleased to announce the signature of
an agreement in principle providing for the supply by the Corporation
to Northvolt of battery grade lithium hydroxide.
Under this agreement in principle, Nemaska Lithium agreed to supply,
through its wholly-owned subsidiary Nemaska Lithium Shawinigan
Transformation Inc., and Northvolt agreed to purchase, on a
take-or-pay basis, up to 5,000 but not less than 3,500 metric tonnes
per year of lithium hydroxide produced at the Corporation's
commercial plant in Shawinigan, for a 5-year supply period commencing
upon the start of commercial production at both the Shawinigan Plant
and Northvolt's projected Skelleftea factory in Sweden (the "N
Factory").
In connection with this supply of lithium hydroxide, Northvolt has
agreed to deliver to the Corporation a EUR 10M promissory note which,
at the Corporation's option, can be converted into voting shares of
Northvolt in connection with the N Factory funding, or redeemed at
cost plus an agreed-upon interest rate.
"We are pleased with this first step in establishing a strategic
partnership between Northvolt and Nemaska, as we both share the same
vision and values of facilitating access to green energy for the
benefit of humanity and pushing the boundaries to do so", declared
Guy Bourassa, President & Chief Executive Officer of Nemaska Lithium.
The supply of lithium hydroxide and the issue of the promissory note,
as contemplated, are subject to the conclusion of a mutually
satisfactory definitive supply agreement and to the prior approval of
the board of directors of both parties.
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 www.nemaskalithium.com or
www.twitter.com/Nemaska_Lithium.
About Northvolt
Northvolt was founded in 2016 with the mission to build the world's
greenest battery, with a minimal carbon footprint and the highest
ambitions for recycling, to enable the European transition to
renewable energy. Northvolt's team of experts is building the next
generation battery factory focused on process innovation, scale and
vertical integration. Once completed, it will be Europe's largest
battery factory and will produce 32 GWh worth of battery capacity
annually. For more information, please visit www.northvolt.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 supply by the Corporation to Northvolt of 3,500 to 5,000
metric tonnes per year of battery grade lithium hydroxide and to the
establishment of a strategic partnership between the Corporation and
Northvolt, 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 start of commercial production at both the Shawinigan Plant
and Northvolt's projected Skelleftea factory in Sweden and (b) the
conclusion of a mutually satisfactory definitive supply agreement.
Forward-looking statements contained in this press release include,
without limitation, those related to (i) the delivery of a promissory
note to the Corporation and its conversion into Northvolt shares or
redemption at cost plus interest, (ii) the prior approval of a
definitive supply agreement by the board of directors of the
Corporation and of Northvolt, and (iii) generally, the above "About
Nemaska Lithium" paragraph which essentially describes the
Corporation's outlook (as well as the corresponding "About Northvolt"
paragraph). 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 Shawinigan Plant and
Northvolt's projected Skelleftea factory in Sweden will be brought to
commercial production, as results from the Corporation's project
financing endeavors and those of Northvolt, as well as future events
could differ materially what is currently anticipated by the
Corporation and Northvolt.
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.
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
