Quebec Lithium Company Announces $459 Million Funding, Stock Jumps
Nemaska Lithium (TSE:NMX) said The Pallinghurst Group will help finance its Whabouchi project, a lithium project located in the Eeyou Istchee James-Bay territory, and an electrochemical plant in Shawinigan.
Nemaska stock was up 36% to 30 cents a share; its 52-week range is 22 cents to 94 cents.
Financing is subject to a 3-month due diligence period.
Financing contemplated is a C$200 million private placement at 25 cents per share and a stand-by purchase agreement to fully guarantee the successful completion of a rights offering of up to C$400 million at the same issue price.
A feasibility study for Whabouchi was completed. Nemaska said the operation would be a combined open pit and underground lithium mine plan with a mine life of 33 years.
Pallinghurst is a global metals and mining industry investor.