April 6, 2018 SoftBank Group Corp.
SoftBank Group Corp. to Invest in Canada’s Nemaska Lithium Inc.
SoftBank Group Corp. (“SoftBank”) today announced a definitive agreement under which SoftBank will invest in the Canadian lithium company, Nemaska Lithium Inc. (“Nemaska”) (TSXNMX). Under the agreement, SoftBank will acquire a stake of up to 9.9% in Nemaska.
Nemaska is developing the Whabouchi mine in Qubec, Canada, one of the richest spodumene hard rock lithium deposits in the world and is building a lithium electrochemical plant (refining plant) at Shawinigan, which is expected to start commercial production of high-purity lithium hydroxide and lithium carbonate in the latter half of 2020. By investing in lithium resource development, SoftBank intends to contribute to the growth of the battery industry in view of increasing demand for smartphones and other communication devices and the anticipated Mobility Revolution to be ushered in by electric vehicles. The Whabouchi mine is expected to have an initial lithium mine life of approximately 33 years and the output from Nemaska’s electrochemical plant is estimated to produce approximately 33,000 tonnes of lithium carbonate equivalent (LCE) annually. For so long as it holds a minimum ownership interest of 5% in Nemaska, SoftBank will have the option each year to purchase up to 20% of Nemaska’s lithium product output over the long term. SoftBank will also have the right to nominate a director to be appointed to Nemaska’s board.
“Upon the completion of this transaction, SoftBank will be a new esteemed shareholder and customer for Nemaska Lithium and we are very pleased to welcome Softbank to our shareholder base and eventually welcome its nominee to our Board,” said Guy Bourassa, President and CEO of Nemaska Lithium. “As a global technology pioneer and leader, SoftBank’s culture of innovation melds very well with our own corporate values and is a clear endorsement of our approach to producing environmentally friendly, low-cost lithium compounds.”
“This investment in Nemaska is of monumental importance to the SoftBank Group’s strategy,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp. “We are extremely pleased to be further accelerating the Mobile Revolution, an era of IoT (Internet of Things) and electric vehicles enabled by the fusion of technology and energy storage.”
QUEBEC CITY, QUEBEC--(Marketwired - June 12, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Nemaska Lithium Inc. (TSX:NMX)(OTCQX:NMKEF) ("Nemaska Lithium" or the "Corporation") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. (together the "Underwriters"), under which the Underwriters have agreed to purchase on a bought deal basis 47,620,000 common shares of the Corporation (the "Shares") at a price of $1.05 per Share for gross proceeds of $50mm (the "Offering"). The Shares will be offered in all provinces and territories of Canada pursuant to a short form prospectus to be filed by Nemaska Lithium, as well as in the United States under applicable registration statement exemptions and such other jurisdictions as may be agreed to by Nemaska Lithium on a private placement basis.
The Corporation has also granted the Underwriters an over-allotment option to purchase up to that number of additional Shares equal to 15% of the Shares purchased pursuant to the Offering, exercisable in whole or in part at any time up to 30 days after and including the closing date of the Offering.
The Corporation intends to use the net proceeds of the Offering for ongoing development of the Whabouchi lithium mine, the Whabouchi spodumene concentrator and the Shawinigan hydrometallurgical plant (collectively, the "Lithium Project"), including for ongoing engineering work, infrastructure construction, down-payments for the order of long lead items and general working capital purposes.
The Offering is expected to close on or about June 29, 2017, and is subject to the receipt of all necessary regulatory approvals, including, but not limited to, the approval of the Toronto Stock Exchange and subject to certain other conditions.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from such registration requirements.
Update on the Lithium Project Debt Financing
Nemaska Lithium also reports that it has been actively engaged in discussions with prospective lenders regarding terms and conditions of the project debt financing to fund the Lithium Project (the "Project Debt Financing"), and has recently begun the due diligence phase of the process with certain parties. The Corporation is confident to enter into an agreement with the lenders by the end of Q3, 2017.
Update on Ongoing Discussions with Ressources Qubec
The Government of Qubec, Nemaska Lithium's largest shareholder through Ressources Qubec's holding of 29.4 million shares, remains highly supportive of Nemaska Lithium and the Lithium Project. Nemaska Lithium and Ressources Qubec remain in ongoing discussions regarding a potential future capital investment in the Corporation to further support the realization of the project. To date, no agreement has been reached between the parties and Nemaska Lithium will continue to evaluate its financing alternatives with a view of maximizing shareholder value.
Summary Advanced stage exploration companies continue to be a key theme within the lithium investment market.
New global lithium supply has remain muted while demand continues to edge higher on electric vehicle and stationary energy storage demands.
Nemaska Lithium remains an attractive investment opportunity, as they are well positioned to bring new supply online in the next years.
The company has a solid operational and technical plan backed by a strong resource.
Overview of the company's position ahead of financial decision announcement and additional off-take partnerships.