NEMASKA EXPLORATION INC. (TSX VENTURE:NMX) has announced that it has entered into a subscription agreement with a China-based Company, involved in the transformation and production of lithium products, for an initial private placement of 7,370,468 common shares at a price of $0.50 per Share and 4,963,050 share purchase warrants for aggregate gross proceeds of $3,685,234.
Each Warrant is exercisable for twelve months from the closing of the Offering, at an exercise price of $0.61. This subscription agreement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including approvals from Chinese regulators. The securities to be issued will be subject to a hold period of 4 months plus one day in Canada. The parties expect to be able to obtain these approvals and close the subscription within the next 60 days.
Guy Bourassa, President and Chief Executive Officer of Nemaska commented, "This is an important milestone in the evolution of Nemaska and a great validation of the strong potential of our lithium assets. We are delighted to welcome our Chinese partner who has deep expertise in lithium products and we look forward to building upon this initial relationship as we move our projects towards the commercial production of spodumene concentrate. The Chinese market is a major consumer and producer of lithium products including vehicle batteries for hybrid and electric vehicles. Our new investor views their investment in Nemaska as part of a broad strategy to not only diversify their supply for raw materials but also to have an ownership position in a high-quality resource capable of producing battery-grade lithium carbonate."
Dundee Securities Corporation acted as the sole agent in this Offering and will receive a cash commission equal to 4.5% of the gross proceeds of the Offering and receive compensation warrants equal to 4.5 % of the Shares, exercisable for twelve (12) months following the closing of the Offering at a price of $0.50 per Share.
Source: NEMASKA EXPLORATION INC.