Nemaska and Orion Mine Finance, a private equity firm specializing in mining companies, declined to comment on the streaming deal, according to Reuters. Sources say talks are still confidential. Shares of Nemaska jumped 16 percent in morning trading on Friday.
Nemaska Lithium Inc. is a development company with a high-grade lithium asset and patent-pending processes to produce high purity lithium hydroxide and lithium carbonate using electrolysis technology.
The company’s key asset, the Whabouchi mine in Québec, Canada, is one of the richest lithium spodumene deposits in the world, both in volume and grade.The spodumene concentrate produced at the Whabouchi mine will be processed at the Shawinigan plant using a patented unique membrane electrolysis process.
Last week, Nemaska said it was in the process of finalizing a $150 million streaming transaction. In a streaming deal, usually, investors advance funds in return for a portion of the miner’s future output at a set, discounted price. Basically, it’s a type of alternative financing.
Since 2004, Canadian law has allowed for what is called a metal streaming transaction. For investors, metal streaming agreements provide the opportunity to purchase metals at a lower, fixed price. So the transaction is a win-win for everyone involved.
Besides the streaming transaction, Orion may also provide debt financing to Nemaska. Nemaska said last week it is in discussions for up to $350 million in debt financing. In total, Nemaska is looking for $825 million for the construction, commissioning, working capital and reserve funds for its Whabouchi lithium mine and Shawinigan electrochemical plant.
SoftBank Group makes a strategic investment in Nemaska
SoftBank Group Corp. – a Japanese multinational conglomerate holding company headquartered in Tokyo, Japan, announced on Thursday it has entered into an investment agreement with Nemaska Lithium Inc.
SoftBank will buy a stake of up to 9.9 percent in the company and invest up to C$99.1 million ($78 million) in a private placement.
“Upon the completion of this transaction, SoftBank will be a new esteemed shareholder and customer for Nemaska Lithium and we are very pleased to welcome its team to our shareholder base and eventually welcome its nominee to our Board,” said Guy Bourassa, President, and CEO of Nemaska Lithium.
“This investment in Nemaska is of monumental importance to the SoftBank Group’s strategy,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp. “We are extremely pleased to be further accelerating the Mobile Revolution, an era of IoT (Internet of Things) and electric vehicles enabled by the fusion of technology and energy storage.”
