AJM outlook and future, page-6

Don't know whether this will help in the overall scheme of things......

Nemaska Lithium Provides Update on the Whabouchi Project

Nemaska Lithium Provides Update on the Whabouchi Project      • The Corporation needs to downsize by letting go of 64 employees    • The Phase 1 Plant will cease operations at the end of December 2019 • Activities at Whabouchi will slow down until the winterization of the site

QUEBEC CITY, Oct. 15, 2019 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (“NemaskaLithium” or the “Corporation”) (TSX:  NMX) (OTCQX: NMKEF) (Frankfurt: N0T)  is announcing that  it must  adjust  the implementation  of its  project,  mainly because of delays to finalize its financing. As a result, the Corporation mustdownsize by letting go of 64 employees. This difficult decision comes after  a rigorous review of the current situation and is aimed at both the optimizationof current cash flow and the continuation of the project. 

Nemaska Lithium is still confident in its ability to successfully complete theproject. However, the  Corporation cannot currently  specify the precise  date for closing the required  financing, as no definitive  agreement has yet  been concluded  with  The  Pallinghurst   Group  (“Pallinghurst”),  to  which   the finalization of the project’s  implementation timeline is directly  connected. In this  context,  the  Corporation  is obliged  to  carry  out  a  collective dismissal, as it expects that mine and plant production preparation activitieswill need to be slowed down pending the completion of financing. Depending  on the site, the dates  of employment termination will  occur 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,”  says  Guy Bourassa, President and CEO of Nemaska Lithium.

The Corporation  remains committed  to completing  the required  financing  in order to accelerate the deployment of its project as soon as possible. It willalso pursue  its efforts  to rapidly  obtain a  favourable decision  from  the Superior Court  of Québec  following its  application in  connection with  its arrangement proceedings and seeking the discharge of the security relating  to the USD 350M Bonds, which were reimbursed as prescribed.

Activity implementation rhythm adjusted in Whabouchi and Shawinigan

Over the next  few weeks,  the employees working  at the  Whabouchi mine  will finish winterizing the site  and assist the  construction crews in  completing certain work before the beginning of  the winter season. Nemaska Lithium  will thereafter see to preserve its assets and ensure the regulatory compliance  of its facilities.

Having fulfilled  the main  objectives for  its construction,  the  Shawinigan Phase 1 Plant will continue its activities until its complete shutdown at  the end of December 2019.  This demonstration plant,  in operation since  February 2017, has been  a major asset  for the development  of the Whabouchi  project, having showcased the reliability of  its patented process and the  exceptional quality of its product, intended for the lithium battery market.

“Once financing is completed, we will have a better visibility on the timelinefor 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, andcontinue  moving  forward  in  order  to  ensure  the  orderly  resumption  of activities with minimal delay when the time comes. 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,” concluded  Mr. Bourassa.