Oct 16 2019
Nemaska Lithium Inc. has reported that it has to do alterations in the execution of its project, specifically due to delays in finalizing its finances. Therefore, the Corporation must dismiss 64 employees.
This hard decision was made following a meticulous review of the present position and is focused on the continuation of the project and the optimization of existing cash flow.
Although Nemaska Lithium is certain that it could successfully finish its project, at present, it cannot come up with the actual date for ending the needed finances, since no final agreement has yet been agreed with The Pallinghurst Group (“Pallinghurst”), to which the completion of the implementation timeline of the project is directly linked.
In this situation, Nemaska is responsible to undertake a collective dismissal, as it anticipates that mine and plant production preparation activities will need to be held back pending the closure of finances. According to the site, the employment termination dates will be between the end of October and the end of December 2019.
We have always asserted that we recruited the best talent to make this project a success. We are still deeply convinced of this, which makes this decision all the more difficult. As we cannot confirm the timeline for the resumption of construction, and although negotiations with Pallinghurst are progressing well, this is the responsible decision to be made.
Guy Bourassa, President and CEO, Nemaska Lithium
The Corporation remains bound to finish the necessary finances to advance its project deployment as early as possible. It will also work to quickly receive a positive decision from the Superior Court of Québec after its application in relation to its arrangement proceedings and request for the discharge of the security about the USD 350M Bonds, which were repaid as specified.
Activity Implementation Rhythm Adjusted in Whabouchi and Shawinigan
The Whabouchi mine workers will complete winterizing of the site in the next few weeks and will help the construction teams to complete some work before the onset of the winter season. After that, Nemaska Lithium will manage to preserve its assets and assure the regulatory compliance of its facilities.
Since the key objectives for the construction of the Shawinigan Phase 1 Plant have been met, the plant will continue its activities until its full shutdown at the end of December 2019. This demonstration plant, running since February 2017, has been an important asset for the Whabouchi project development, having exhibited the dependability of its patented process and the excellent quality of its product, especially for the lithium battery market.
Once financing is completed, we will have a better visibility on the timeline for the implementation of the project and the resumption of more sustained activity. It is now time for us to roll up our sleeves, as we know how to, and continue moving forward in order to ensure the orderly resumption of activities with minimal delay when the time comes.
Guy Bourassa, President and CEO, Nemaska Lithium
Bourassa continued, “With our team and partners, we are going to continue working relentlessly to make Nemaska Lithium a success. We sincerely thank the employees who will be leaving us and hope to see many of them back on our team once operations resume.”
Source: https://www.nemaskalithium.com/en/