Nemaska Lithium Inc fka NMKEF

[HowardHughs]

"Nemaska Lithium will soon become the largest producer of lithium hydroxide in the world"
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Billions of addicts to electronic gadgets of all kinds - cell phones, tablets, laptops - and fans of more and more electric cars can rest easy: their batteries can be recharged easily with the arrival of this new actor Quebec.

Lithium, alkali metal essential for the manufacture of rechargeable batteries, is described by many as the oil of the contemporary era.


By seeking to reactivate a nickel deposit in Nemaska, 300 kilometers north of Chibougamau and in the heart of Cree territory, Nemaska Exploration discovered a deposit rich in lithium, just when the attraction for this metal exploded.

"In 2008-2009, with the arrival of Tesla in particular, lithium became even more in demand. At the time, there were 250 mine projects in the world. But China dropped prices and only 10 projects remained active, "explains Guy Bourassa, CEO of Nemaska Lithium.

The Nemaska deposit and the development of an electrochemical technology to transform the ore into lithium hydroxide - which is used to manufacture the cathodes of rechargeable batteries - have enabled Nemaska Lithium to make a financial package just as audacious as that achieved for the Stornoway diamond mine project.

Nemaska Lithium became a publicly traded company in 2010 and was able to complete its first work thanks to a private placement with Ressources Qubec and the Cree Nation.

"We did several rounds of financing afterwards that attracted more than 20,000 retail investors. Our transformation process was developed with a pilot plant in Shawinigan. But there, it was necessary to give a big blow to ensure the construction of the mine and that of the processing plant ", exposes Guy Bourassa.

After more than a year of touring financial institutions around the world, Nemaska Lithium managed to raise $ 1.1 billion, of which $ 300 million will be used to build the infrastructure of the lithium mine in Nemaska and 500 million for the start-up of the Shawinigan processing plant.

"? We made a private placement of $ 80 million with Ressources Qubec, another $ 90 million with the Japanese group SoftBank and a public offering of $ 280 million.?- Guy Bourassa

"At the same time, we made a $ 350 million bond issue to which no fewer than 45 financial institutions in Britain, the United States and Asia have subscribed. Even the Norwegian green funds have embarked on the project, "says Guy Bourassa.

Finally, to close it all, Nemaska Lithium obtained $ 150 million on revenue sharing on its future sales.

In the end, Ressources Qubec is now the largest shareholder of Nemaska Lithium, with 12.9% of its capital, and SoftBank follows with a 9.9% stake. Forty percent of the business is owned by the general public investor.


The mine will begin operations in late 2019. One million tonnes of ore will be mined to produce 215,000 tonnes of lithium concentrate.

"This concentrate will be transported by rail to our plant in Shawinigan, which will be operational in the fall of 2020. The 215,000 tonnes of concentrate will produce 33,000 tonnes of lithium hydroxide that will be sold to our customers.

"We have firm agreements with four customers that account for 75% of our production. With our agreements in principle, 90% of our production is assured of a commercial outlet, "says the CEO.

By the time the Shawinigan plant is in operation and capable of producing its maximum capacity, Nemaska Lithium has committed to supplying a Chinese customer with lithium concentrate for a two-year period.

"We are going to be the biggest producer in the world. By the time we enter production, a new project with a capacity of 24,000 tonnes of lithium hydroxide will start, but we are talking about a production of 33,000 tonnes, "insists Guy Bourassa.

Once its cruising speed is reached, Nemaska Lithium expects to generate annual revenues of 500 million US and could consider increasing its production capacity.

"We developed an electrolysis process, for which we hold nine patents, which makes it possible to reduce the use of sulfuric gas by 75% in the process of transformation," Bourassa proudly adds.

A lawyer by training, Guy Bourassa has always been intimately associated with the mining world, for a long time in financing activities with the Bourassa Provencher Barrette office in Abitibi.

"We were responsible for 35% of all the shares of the mining sector in Quebec. For five years, we have filed an average prospectus per month, "he recalls.

He has also worked for several mining companies, including the positions of CEO of Monarque Resources, Radisson Mine and Dufresnoys. He was also corporate secretary of Mazarin.