Ganfeng begins production at Goulamina lithium mine in Mali
The project is one of the largest lithium mines in Africa.
Canadian-based lithium miner Nemaska Lithium (TSX: NMX) on Tuesday provided an update on the progress of its Whabouchi project and its financing discussions with investment firm The Pallinghurst Group.
In July, Nemaska received a letter of intent from Pallinghurst for a C$600 million private placement, which would enable Nemaska to complete the construction of its Whabouchi hard-rock lithium mine in the James Bay region and at the Shawinigan processing plant north of Montreal.
The Whabouchi mine is expected to produce 7 million tonnes of spodumene concentrate over its entire mine life
In a press release, Nemaska CEO Guy Bourassa said that the company had worked “assiduously” with Pallinghurst on the investment proposal. “We have every reason to believe that we have met all their requirements from a technical due diligence standpoint.”
The parties have agreed to extend the exclusivity period to the end of December.
Pallinghurst and co-founder and managing partner Arne Frandsen said the group had been impressed by its review of Nemaska and would be “open to explore with the corporation’s largest shareholders an additional capital injection to potentially substitute certain elements of the current financing structure.”
“Based on our due diligence review thus far, we continue to believe that Nemaska Lithium has a world-class spodumene deposit, a proven lithium salts patented process, as well as a highly qualified workforce. These assets position Nemaska Lithium as a key player in the rapidly growing lithium-ion battery and energy storage industry,” Frandsen said.
The Whabouchi mine is expected to produce, over its entire mine life, about 7 million tonnes of spodumene concentrate, which will be converted into 770,000 tonnes of battery-grade lithium hydroxide and 361,000 tonnes of battery-grade lithium carbonate.
Earlier this year, Nemaska said that it needed about C$375 million to complete the project. As of August 31, it had incurred capital expenditure of C$377 million on a total project budget of C$1.27 billion.
Nemaska’s stock rose by nearly 7% at market open. The lithium miner has a C$199.2 million market capitalization.
