Remember When d'alsio Warned us about Appointment of COO After so much Government money invested in ORBITE we now read in the latest MD&A
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The following article was published in the Journal of Montreal page 10 regarding the Canada Lithium (Quebec lithium) mine. June 22, 2016 AGM regarding Mr. Kelly's May 12, 2016 press release re. The Hiring of Charles Taschereau as President and COO of Canada.
Surveys
$ 119 million of public funds in a mine
https://www.journaldemontreal.com/2016/06/23/119m-de-fonds-publics-dans-une-mine
file photo
HUGO JONCAS
Thursday, June 23, 2016 06:30
UPDATE Thursday, June 23, 2016 06:
30 The government is extending $ 56 million to help a Chinese multinational to buy Quebec lithium bankrupt. This new loan brings the public funds invested in this Abitibi mine to $ 119 million, which is experiencing serious production problems.
The new owner is a numbered company controlled by Jilin Jien Nickel Industry. Last year, the Chinese company received a loan of $ 100 million from Quebec for its other mine, Nunavik Nickel.
In order to buy Quebec Lithium and start production, Quebec is lending an additional $ 36 million to the project, and will invest $ 20 million for a 10% share in the company that will operate the mine.
These new investments are in addition to the $ 63 million that Quebec Lithium already owes to the government.
"The promoter is committed to honoring this claim," said Minister of State for Mines, Luc Blanchette, in an interview with our Board of Inquiry.
Archive Photo
Luc Blanchette
Minister Responsible for Mines
His office would not yet say when that amount was to be repaid, an information deemed "confidential". In the meantime, $ 119 million of public money is at stake.
Serious problems to be addressed
In total, the new owners expect to spend $ 200 million to reopen the mine, "probably within a year, According to the minister.
Of this amount, $ 80 million must be invested in the plant, yet brand new. "It was not able to produce quality lithium carbonate on a regular basis," says Luc Blanchette.
The mine will also change its extraction method to obtain a more concentrated ore.
Experts are questioning the appropriateness of investing public funds in this mine. "In a market as dynamic as lithium, a good mine should find the necessary funds without the government," says Jon Hykawy, at Stormcrow Capital .
According to an expert who wants to remain anonymous, "there is no exploitable deposit" in La Corne. The vein would be too narrow and irregular.
Lithium is used to manufacture batteries, especially for the electric and telecommunications market.
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ON THE SAME SUBJECT
Qubec lends $ 100 million to a troubled past
http: //www.journaldemontreal.