Post by
Loserboard on Aug 20, 2020 4:26pm
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Released at 11:53 a.m. The Minister of Economy and Innovation used a strong image to describe the state of affairs of Nemaska Lithium, which has built a lithium processing pilot plant in Shawinigan in the former Laurentides plant. During a committee on the study of credits in Quebec City, the minister was questioned by the MNA for Ren-Lvesque, Martin Ouellet, on the company's situation. According to the minister, some shareholders were taking undue advantage of their investment by receiving rebates of up to 60% of the price of purified lithium in Shawinigan. It's a kid's patent," said Pierre Fitzgibbon. Visibly exasperated, but above all disappointed by this whole saga, Minister Fitzgibbon pointed out that Nemaska's financial package had many flaws, including the fact that the company needed an additional $400 million in 2019 to continue its operations. I went around the world to find out who was ready to come and invest in the kids' patent and no one showed up. Within the next few days, a judge is expected to rule on the future of the company, which filed for protection from its creditors in December 2019. The judge will have to decide how the assets will be distributed if no investors come forward. A billion dollars would now be needed to complete the Shawinigan plant project and bring the Whabouchi mine in Northern Quebec into operation. Will the Government of Quebec put $1 billion into this? The answer is no, hammered the minister. Are the small investors being cheated? According to the minister, thousands of small investors got involved in buying Nemaska shares at the same time as the financial institutions that held 70% of the shares left the ship. In the second quarter of 2019, Nemaska announced that it would need at least $375 million to continue operations. Pierre Fitzgibbon says this is when the story took a dramatic turn. When the new shares were issued, there were about 70 per cent of financial institutions and that's when the bicycle chain came in. The institutions had already sold everything. And who bought? Individuals. It is sad. Uncertain future for the Whabouchi mine Furthermore, the Minister believes that the Whabouchi mine is unlikely to be restarted due to the very low price of lithium on international markets. This mine, located north of Chibougamau, was the main source of lithium supply for the Shawinigan plant. It would be better to buy the ore on the international markets and one day the mine will be restarted," the Minister analyzed. Pierre Fitzgibbon has undertaken to make public, in the wake of the judgment surrounding Nemaska's bankruptcy, the Quebec government's overall vision of its intention to develop an industrial battery manufacturing industry. We have a sales pitch that is being presented around the world and that is very well done. When we go to see Nemaska and what will happen...to explain the government's vision as clearly as possible, the minister concluded. Also read Nemaska Lithium: a new structure to revive the company? Nemaska Lithium not out of the woods yet Pierre Marceau Twitter Email HERE FIRST - 15-18 2020
Comment by
Calgary_AB on Aug 20, 2020 4:45pm
Long story short: I TOLD YOU SO way before this came out and just a few days ago I said news delay is BAD news and not good, good news come out even before the official release. I bet you think NMX is gone because I was negative about NMX...you should have listened or at least ask me questions about my red flags...ohh well, not my money... Got gold?
Comment by
mick1888 on Aug 20, 2020 6:30pm
CalAB, who are you and Minister Fitzgibbon trying to kid.... ;-) He went round the world living it up at the expense of tax payers in one big Ego expedition. No-one in their right mind would sign up to anything Fitzgibbon was trying to sell them, I doubt they even took him seriously.... ;-) No doubt another Breitbart recruit about to be found out.... ;-D Got Lithium GLTA longs