Nemaska Lithium

Nemaska – Second Brutal News Release within One Week

Tonight Nemaska Lithium (TSXV: NMX, NMX.W, OTCMKTS: NMKEF) announced they have terminated their multi-year supply agreement with Livent Corporation (an FMC Corporation spinout). This Supply Agreement was for up to 8,000 tonnes per year (28,000 tonnes in total during the term of the contract) of lithium carbonate starting April 1, 2019.

In the company’s annual statements, reported in late September, Nemaska made the following warning in the subsequent event section:

To summarize what happened. Nemaska agreed to begin supplying FMC/Livent with lithium carbonate this spring. Due to project delays and cost overruns, Nesmaska is now unable to begin supplying the carbonate as promised.

The companies were working towards amending the supply agreement, however tonights news is an indication that FMC/Livent are wiping their hands clean of Nemaska. As a result, Nemaska will have to reimburse FMC/Livent the $10M payment pay made to Nemaska in April 2017, and pay a breakage fee of the same amount. Resulting in Nemaska forfeiting $20M of badly needed cash.

This is another brutal news event hitting the Canadian Lithium industry and specifically Nemaska in one week. Following the previous announcement where Nemaska announced project cost overruns of $375M.


Information for this briefing was found via Nemaska Lithium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Nemaska Lithium Applies to Effectively Cancel US$350M Senior Secured Bond

Nemaska Lithium (TSX: NMX) announced this morning that it had acknowledged a “set-off” in its...

Tuesday, September 17, 2019, 09:52:55 AM

Nemaska Lithium Sells Assets, Leaves Nothing For Shareholders

Nemaska Lithium (TSX: NMX) has reached a conclusion in its ongoing CCAA proceedings, with the...

Monday, August 24, 2020, 12:33:48 PM

Nemaska Lithium – Discharged on Additional Funding Requirements

In April 2018, I flew into Montreal to visit Nemaska Lithium’s (TSXV: NMX, NMX.W, OTCMKTS:...

Friday, February 22, 2019, 02:00:55 PM

Quebec-based Nemaska Lithium Enters Into 11-Year Supply Agreement With Ford

A Quebec firm developing a lithium mine and production plan has agreed to supply materials...

Tuesday, May 23, 2023, 12:07:00 PM

Nemaska Lithium Sees Bourassa Depart Company And Board

Nemaska Lithium (TSX: NMX) announced this morning that President and CEO Guy Bourassa has stepped...

Thursday, February 20, 2020, 09:25:21 AM