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Nemaska Bags $1.1B for Lithium Mining

Nemaska Lithium Inc. recently raised $1.1 billion (USD 849 million) from investors. The company will use the investment to cater to the growing demand for lithium hydroxide.

Nemaska will use the money to support the construction of the Whabouchi lithium mine and Shawinigan electrochemical plant in Quebec, Canada.

The state-of-the-art plant will convert spodumene concentrate (from the Whabouchi mine) into pure lithium hydroxide.

Nemaska has been working on the funding for more than a year. The financing includes:

  • CAD 280 million public offering of common shares on a bought deal basis
  • CAD 80 million private placement of stock with the Quebec government
  • USD 350 million bond sale

Nemaska expects to complete the Whabouchi mine project in about 15 months. The facility in Shawnigan is expected to be complete in two years.

The demand for lithium is surging due to its use in electric vehicles and rechargeable batteries. Investors foresee a boom in lithium demand and are keen to invest in lithium miners.

“The timing is good. … There’s a big buzz,” Nemaska Lithium CEO Guy Bourassa told The Globe and Mail.

He added, “We’re not even open and we’re sold out. We’re getting requests by very big cathode manufacturers that in a normal world you would not think would be considering us. We could have already sold about two times our expected production.”

Analysts expect the global production of lithium to triple and reach over 600,000 tons by 2020.

Moreover, they estimate that the global rechargeable battery market will more than double its size to $112 billion by 2025.

About Nemaska Lithium

Nemaska is a lithium company in Quebec, Canada. The company intends to supply lithium hydroxide supplier and lithium carbonate to the emerging lithium battery market.

Nemaska will mine lithium at the Whabouchi mine. It will then process it into lithium hydroxide and lithium carbonate at its processing plant in Shawnigan.

The company believes that the Nemaska Whabouchi spodumene deposit has an initial mine life of 26 years.

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