CLQ check, check, check, and check Canada Lithium Corp. completed the first drawdown on Oct. 26, 2012, of $35-million under its previously announced $75-million, five-year credit facility with Bank of Nova Scotia, as administrative agent and lead arranger; Commonwealth Bank of Australia, as documentation agent; and Caterpillar Financial Services, as lender and core lease provider (see press release dated Feb. 13, 2012).
The project continues to meet its budget and scheduled milestones for commissioning of the spodumene circuit by the end of 2012. During the past few weeks, prestripping of the deposit and construction of the first phase of the tailings management facility have been under way. Last week, the company began mining operations in a series of blasts that excavated about 80,000 tonnes of waste rock to expose the lithium-bearing deposit and provide material for the TMF containment berms, mine-haulage roadbed and crusher access ramp. Over the next six weeks, the company anticipates excavating more than 600,000 tonnes of waste rock to undertake the initial phase of mining and spodumene-plant commissioning scheduled for December, 2012.
In the process plant area, the main high-voltage power line from Hydro Quebec has been completed and connected to the plant electrical substation. The plant's 120-kilovolt transmission line was connected to the grid this past weekend. The pyrometallurgical kiln (approximately 30 metres in length and weighing 200 tonnes) has been installed. The hydrometallurgical tanks and associated process equipment for the production of battery-grade lithium carbonate are now being put into place.
Global lithium markets, meanwhile, continue to display the price strength that characterized the industry in 2011 and early 2012 when major producers such as SQM, FMC Lithium and Rockwood (Chemetal) increased prices by 10 per cent to 20 per cent. Rockwood and FMC Lithium both announced butyllithium price increases between 4 per cent and 8 per cent on Oct. 15, 2012. FMC also noted that its lithium metal prices were being increased by 10 per cent.
In connection with the financial close of the credit facility and in consideration of the partial financial guarantee from Investissement Quebec, four million common share purchase warrants were issued to Investissement Quebec. As previously announced, each warrant entitles the holder to purchase one common share at a purchase price of $1.50 per common share and is exercisable at any time from the 25th month through the 60th month following the coming into force of the financial guarantee from Investissement Quebec and in limited other circumstances.