Nemaska to Receive $10M (U.S.) Payment from FMC

FMC Corp. will pay a lump sum of $10-million (U.S.) to Nemaska Lithium Inc. (TSX:NMX,OTCQX:NMKEF) by April 7, 2017, in accordance with the supply agreement announced on Oct. 31, 2016, and has agreed to amend the supply agreement to extend the timeline for the supply of product thereunder.
Under the supply agreement, as amended, Nemaska Lithium will begin to supply FMC with lithium carbonate no later than April 1, 2019. Nemaska Lithium will also provide lithium carbonate samples from its phase 1 plant to FMC for qualification in 2017.
The payment will be secured by a first rank hypothec (lien) on the corporation’s lithium carbonate and hydroxide inventory and the proceeds thereof. If Nemaska Lithium does not fulfill its delivery obligation under the supply agreement, as amended, it shall repay FMC the payment plus a penalty calculated as per that agreement.
“The payment and the supply period extension show that FMC, a major credible lithium producer, has continued confidence in our project and business relationship. The lithium market needs new producers, such as Nemaska Lithium, to come on stream over the next few years to keep up with the ever-growing demand from the lithium ion battery market. Nemaska Lithium is committed to meeting the needs of its customers and we are on track to commence the commissioning of the Shawinigan hydromet plant during the second half of 2018, with production from the Whabouchi mine commencing in the first half of 2018,” commented Guy Bourassa, president and chief executive officer of Nemaska Lithium.
About Nemaska Lithium Inc.
Nemaska Lithium intends to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles, cellphones, tablets and other consumer products. The spodumene concentrate produced at Nemaska Lithium’s Whabouchi mine will be shipped to the corporation’s lithium compounds processing plant to be built in Shawinigan, Que. This plant will transform spodumene concentrate into high-purity lithium hydroxide and carbonate using the proprietary methods developed by the corporation, and for which the corporation holds four granted patents and several patent applications that are pending in different countries, covering different aspects and improvements of its proprietary technology for preparing high-purity lithium hydroxide and carbonate.
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