QUEBEC CITY, QUEBEC--(Marketwired - April 11, 2013) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. WIRE NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Nemaska Lithium Inc. ("Nemaska" or the "Corporation") (TSX VENTURE:NMX) (OTCQX:NMKEF) announces that it has closed a supplemental prospectus offering ("Offering") of an aggregate of 14,123,168 million units at a price of C$0.30 per unit for gross proceeds of C$4,236,950 in connection with the Base Shelf Prospectus dated March 4, 2013. Each unit is comprised of one common share of Nemaska ("Unit Share") and half of a common share purchase warrant ("Warrant"). Each whole Warrant is exercisable for a period of 24 months from the date of closing to purchase one common share of Nemaska at a price of C$0.40.
"We will use the proceeds from this Offering to immediately move forward with the construction of our Phase 1 Lithium Hydroxide/Carbonate Plant by ordering the long lead items; continue with the plant engineering work and for general administrative expenses and working capital," said Guy Bourassa President and CEO of Nemaska . "In tandem we are in active discussions with other parties to secure additional financing for the balance of the Phase 1 Plant budget. These sources include strategic partners/investors, financial institutions and joint venture partners for the Phase 1 Plant."
"In addition to the on-going dialogue with our customer Phostech Lithium Inc, and their parent company Clariant AG, we have initiated numerous discussions with new customers for samples of lithium hydroxide from our Phase 1 Plant," commented Jean Francois Magnan, Technical Manager at Nemaska. "We have planned a targeted marketing campaign aimed at key end-users, particularly in Asia, and we are mobilizing our efforts now that the Phase 1 Plant construction is underway. Our strategy is to use the Phase 1 Plant to produce commercial samples of lithium hydroxide for customer evaluation and build a robust order book in advance of building the larger commercial hydroxide plant. I am very excited to be moving forward with our marketing program and I look forward to active dialogue with new customers."
In consideration for their services rendered in connection with the Offering, the Agents received an aggregate cash commission of $253,542 and an aggregate number of 845,140 warrants (the "Broker Warrants"). The Broker Warrants entitle the Agents to subscribe for an aggregate number of 845,140 Common Shares, at a price of $0.30 per Common Share, until 24 months from the date of closing.
The securities have not been registered under the United States Securities Act of 1933 (the "Act") or any state securities laws and may not be offered or sold absent registration under the Act and applicable state securities laws or an applicable exemption from the registration requirements thereof. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption there from.
About Nemaska
Nemaska intends to become a lithium hydroxide/carbonate producer based in Quebec and has filed patent applications for its proprietary methods to produce lithium hydroxide and lithium carbonate. In tandem, the Company is developing one of the richest spodumene lithium hard rock deposit in the world, both in volume and grade. Spodumene concentrate produced at Nemaska's Whabouchi mine and from other global sources will be shipped to the Company's lithium hydroxide/carbonate processing plant located in Salaberry-de-Valleyfield, Quebec. This plant will transform spodumene concentrate into high purity lithium hydroxide and lithium carbonate for the growing lithium battery market. The Nemaska's Whabouchi deposit, located in the James Bay Region in the Province of Quebec, Canada, near the Cree community of Nemaska, should have an initial mine life of 18 years.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nemaska to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
