RE:Half of orion streaming agreement will fall throughFor 3 years now I’ve been telling you guys that these deals were not good…I’ve been bashed for it even though I told you my profession was Contracts negotiations at executive level and that’s how my red flags started…
Now we stand to learn exactly what I told you during the last 3 years, maybe and just maybe you should really ask yourself if you should pay attention to others once in a while and not be so stuck up in your dreams of becoming rich fast…if you would have listened you would have made a profit already and just stay on side lines and see what happens…staying LONG you lost your shirt already, you guys continued to buy on deeps even though I warned you again and again it is a falling double sided knife…
You only need a little bit of commonsense to understand how this will work out:
The bad old contracts not respected end up to be even worst that originally, because now you get penalties and interests even lawsuits. Lawsuits cost money and reputation. A small company with a joker like Guy Bourassa can easily go bankrupt in a very fast time (from a Fri to a Mon.)
All those bad deals that cost interest, penalties and lawsuits can be added up to the original money given to NMX and that is a liability…it is not enough to cancel the streams and the Off-Takes they also need to pay it back…all that money was spent already and a customer that got burned by this can open a lawsuit against the company and all that shiny new equipment and including the lands and claims can easily be frozen in a lawsuit…
Those customers will not warn you what they will be doing, they see the problems and they act…next thing you know one morning you find out NMX halt and never comes back, not even to say: “sorry guys”
I repeat once more, back in 2000 I was heavily invested in facial recognition it was the hottest thing and the future company called NEXUS One morning it halted….never to come back again…yet the same software is being used all over the world and guess what it is called NEXUS and I now pay $50 to have a NEXUS card after almost going bankrupt because of my investment with them…
when I inquired about it I was told this NEXUS has nothing to do with my NEXUS here is the company:
https://www.reuters.com/companies/NXGIF.PK Don’t kid yourself it can happen to you too…
Tcheck wrote: If certain technical and other customary conditions that must be satisfied no later than December 31, 2019 are not met .
i think that would be a good thing .we were giving them too much of our production.
maybe we can even cancel the whole orion deal now that we are at it of reinventing the company.
charlene any opinion on this?
The Streaming Agreement provides for the sale and delivery to Orion of 14.5% on all lithium hydroxide and lithium carbonate produced at the Shawinigan plant and sold to third parties (collectively, "Stream Products"). Orion's purchase price paid to Nemaska Lithium under the Streaming Agreement will be 40% of the sales proceeds of such Stream Products. Nemaska Lithium will act as Orion's agent in the sale of the Stream Products to third-party off-takers. Through this arrangement, Orion will receive 60% of the sales proceeds from such Stream Products, which will result in Orion receiving a net portion of approximately 8.7% of the Stream Products sales. The maximum amount of Stream Products deliverable per year will not exceed the equivalent of 5,000 tonnes of refined lithium products.
In consideration of the Streaming Agreement, Orion will make an advance payment equal to USD 150M to Nemaska Lithium Shawinigan Transformation Inc., a wholly-owned subsidiary of Nemaska Lithium. The advance payment will be released in two equal tranches of USD 75M with the first tranche expected to be payable once the Project Financing is in place and once Nemaska Lithium has satisfied certain customary conditions which it expects to satisfy soon after the Project Financing completion. The second tranche will be payable upon the satisfaction of certain technical and other customary conditions that must be satisfied no later than December 31, 2019. In the event that these latter conditions are not satisfied, the second tranche will not be released and the percentage of Stream Products will be reduced from 14.5% to 7.5%.