Nemaska Lithium seeks additional funding for lithium mine and transformation plant
On December 23, 2019, Nemaska Lithium announced that it had obtained from the Superior Court of Québec protection from creditors under the Companies’ Creditors Arrangement Act (CCAA).
Nemaska was in the midst of constructing a C$1.1 Billion lithium-bearing spodumene mine and an electrochemical lithium transformation plant when it determined that additional funds would be needed to complete its projects, the Whabouchi lithium mine and Shawinigan electrochemical plant. After an unsuccessful review of available alternatives and CBCA arrangement, the company filed for protection from creditors under the Companies’ Creditors Arrangement Act. Shortly thereafter, Nemaska initiated a court-supervised sale and investor solicitation process, which currently contemplates closing of a sale or investment transaction no later than August 14, 2020.
Nemaska is a Quebec-based developing chemical company that focuses on commercializing high-purity lithium hydroxide.
McCarthy Tetrault is advising Nemaska with a team led by Alain N. Tardif and Patrick Boucher that includes Gabriel Faure and François Alexandre Toupin.