(Shawinigan) Ressources Québec, a subsidiary of Investissement Quebec, is investing $ 10 million in the production plant project of lithium hydroxide in Shawinigan on the site of the ancient Laurentide mill. The Cree community of Nemaska injects his side $ 3 million in this project.
Quebec and community resources Nemaska Cree globally acquire 38,235,295 shares at a price of $ 0.34 each, the issue price. The closing of these investments will take place no later than 25 March. The issue price represents a discount of approximately 15% compared to the average market price.
“This investment demonstrates the commitment of the Government of Quebec and the Cree community of Nemaska towards our project,” said in a statement Guy Bourassa, President and CEO of Nemaska.
The management of Nemaska underlined that the Quebec government is a very important partner for the implementation of its plant in Shawinigan. “It has been a great support in our strategy to build a Phase 1 plant to attract customers and to sign operating agreements for the construction of the Whabouchi mine and hydrometallurgical plant in Shawinigan” added Guy Bourassa.
“This is the final portion of the overall budget of $ 38 million for Phase 1 plant, for which the Company was able to secure funding of $ 28 million through government contributions and an advance on the factory’s products and services phase 1. ”
The next step, according to the company, is to consolidate the agreement with Johnson Matthey Ltd. Materials for Batteries and start building the plant in Shawinigan. “We have customers who contact us every day and seeking of lithium hydroxide and with this plant, we will be able to satisfy their demand by providing product samples. Demand for lithium hydroxide is growing at a pace that has never been seen before in the industry and we are perfectly timed to meet market demand, “added Mr. Bourassa.