LITHIUM: Nemaska to raise $50M for Whabouchi mine and plants

QUEBEC– Nemaska Lithium of Quebec City is launching a $50-million bought deal public offering. The proceeds will be used for ongoing development at the Whabouchi lithium mine and spodumene concentrator about 300 km north of Chibougamau and the hydrometallurgical plant in Shawinigan. [caption id="attachment_1003718713" align="alignleft" width="300"] The concentrator at the Whabouchi mine will produce 213,000 tonnes of spodumene concentrate annually. Credit: Nemaska Lithium.[/caption] Nemaska will issue 47.62 million common shares at a price of $1.05 each. The underwriters have been granted an over-allotment option to purchase additional shares worth up to 15% of the original offering. The offer is expected to close on or about June 29, 2017, and is subject to the customary regulatory approvals. The open pit Whabouchi mine has measured and indicated resources of 28.0 million tonnes grading 1.57% lithium oxide and inferred resources of 4.69 million tonnes grading 1.51% Li₂O. The mill will produce 213,000 t/y of lithium concentrate that will be treated using a proprietary process in the hydromet plant to produce 28,000 tonnes of lithium hydroxide and 3,250 tonnes of lithium carbonate annually. Initial capital expenditures are budgeted at $549 million. The feasibility study may be read at www.NemaskaExploration.com.