Nemaska Lithium Inc.

TSX VENTURE : NMX
OTCQX : NMKEF


Nemaska Lithium Inc.

April 02, 2014 11:43 ET

Nemaska Lithium Closes $3,250,000 Financing

QUÉBEC CITY, QUÉBEC--(Marketwired - April 2, 2014) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. WIRE NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Nemaska Lithium Inc. ("Nemaska" or the "Corporation") (TSX-VENTURE:NMX)(OTCQX:NMKEF) announces today the closing of a $3,250,000 supplemental prospectus offering (the "Offering") by the issuance of 26,000,000 units (the "Units") at a price of $0.125 per Unit. Each Unit is comprised of one common share of the share capital of Nemaska (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles its holder to purchase one Common Share, at a price of $0.20 per Common Share, on the date that is 18 months following the closing date of the Offering.

The net proceeds of the Offering will allow the Corporation to (i) continue the permitting process for the mine and concentrator on the Whabouchi property, (ii) complete the feasibility study for the Whabouchi Project and the hydrometallurgical plant in Salaberry-de-Valleyfield, (iii) fund the general administrative expenses and other working capital needs, and finally (iv) make the last payment due to the vendor of the Whabouchi property for an amount of $500,000.

"We believe lithium is becoming an increasingly important commodity," commented Mr. Guy Bourassa, President and CEO. "The lithium market remains strong and recent announcements by automotive manufacturers such as Tesla suggest the demand for lithium will continue to grow well into the future. We are well positioned as a new entrant into the lithium market with our next major catalyst being the delivery of our feasibility study at the end of April 2014. This report will highlight the economics of our approach to mining and producing a high purity lithium hydroxide. In tandem, we are continuing discussions with lithium compounds end users interested in securing long term supply arrangements."

Nemaska has filed on March 28, 2014, an amended and restated prospectus supplement no. 3 (the "Prospectus Supplement") filed initially on March 13, 2014 to reduce the amount of the Offering and to confirm the terms of the Offering. A copy of the amended and restated Prospectus Supplement may be obtained from the Corporation's corporate secretary by e-mailing at info@nemaskalithium.com, by mail at 450 rue de la Gare-du-Palais, 1st Floor, Québec, Québec, G1K 3X2 or by phone at 418 704-6038, it can also be found electronically on SEDAR at www.sedar.com.

In consideration for its services rendered in connection with the Offering, Secutor Capital Management Corporation received an aggregate cash commission of $220,000.

The securities have not been registered under the United States Securities Act of 1933 (the "Act") or any state securities laws and may not be offered or sold absent registration under the Act and applicable state securities laws or an applicable exemption from the registration requirements thereof. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption there from.

About Nemaska

Nemaska intends to become a lithium hydroxide/carbonate producer based in Québec, Canada, and has filed patent applications for its proprietary production methods. In tandem, Nemaska is developing one of the richest spodumene lithium hard rock deposit in the world, both in volume and grade. Spodumene concentrate produced at Nemaska's Whabouchi mine and from other global sources will be shipped to the Corporation's lithium hydroxide/carbonate processing plant to be built in Salaberry-de-Valleyfield, Québec, Canada. This plant will transform spodumene concentrate into high purity lithium hydroxide and lithium carbonate mainly for the growing lithium battery market. The Nemaska's Whabouchi deposit, located in the James Bay Region in the Province of Québec, Canada, near the Cree community of Nemaska, should have an initial mine life of 18 years.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nemaska to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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