I realise maybe no one is really interested in 'Nemaska Watch' but for those that are, here is a news article that indicates the company is willing to do anything... I think this and what is going on with Albemarle and Mineral Resources are 2 things worth keeping an ear to the ground.
Nemaska Lithium Inc may issue new shares, take on new debt or sell assets as it hunts for fresh capital to build a lithium project in Quebec that faces cost overruns of more than $300 million, head of investor relations Wanda Cutler said on Wednesday."Everything from M&A to more debt to equity is on the table," Cutler told the Fastmarkets Lithium Supply and Markets Conference in Santiago. "Over the next few months, we'll be making those decisions."Nemaska is developing the Whabouchi hard rock lithium project in northern Quebec, one of North America's largest deposits of spodumene. A related processing plant is under construction near Montreal.The company this year said it has faced cost overruns of more than $300 million as it works to build those facilities, part of a plan to supply the white metal for use in electric vehicle batteries. Cutler said much of the cost overruns were due to "indirect" items that were not foreseen.For instance, Nemaska ended up having to build lodging at the mine for workers. The company had expected to lease the facility from a third party.
The chemical processing facility also has faced several design challenges, she said."In hindsight, perhaps on the chemical plant, the level of detailed engineering should have been a bit more advanced before we started construction," Cutler said.The news comes after a prolific year of fundraising last year for Nemaska, when the company pulled in more than $1 billion in part from stock offerings. LINK--------
The unforseen workers lodging, and hope that they could lease a facility inidcates how poorly and short sighted Nemaska has been operated. That part makes me laugh more than the cost overruns of $300 million which is a really tough spot and doesn't include further contingency costs.
I think if Galaxy was to make a move on Nemaska it would probably be worthwhile including our partners. - It does bring with it potential of getting into production in Canada much sooner than anticipated. I cannot see why the company wouldn't at least consider and do due diligence.
If anyone else has more information they can share I would greatly appreciate it. I am looking at this from an M&A perspective for Galaxy.
