Nemaska Lithium has announced that Nemaska Lithium Shawinigan Transformation, its wholly-owned subsidiary, has received a first payment of $75m from affiliates of Orion Mine Finance II (Orion).
Image: Lithium ingots with a thin layer of black nitride tarnish. Photo courtesy of Dnn87/Wikipedia.
The payment was received under the streaming agreement entered into on April 12, 2018.
Such payment represents the first tranche of the total advance payment equal to USD 150M to be made by Orion under the Streaming Agreement (see press release of April 12, 2018). The second USD 75M tranche will be payable upon the satisfaction of certain technical and other customary conditions that can be satisfied until December 31, 2019.
Guy Bourassa, President and CEO, commented, “We welcome this first payment and look forward to working with Orion in the coming months to bring in the second tranche payment. We are also on track with the requirements to meet the conditions precedent to the Bond offering’s “Long Stop Date” of August 30, 2018.
The project execution itself is moving forward in terms of, but not limited to, engineering and construction and we are bringing in the components of the project funding as needed.”
This first tranche payment from Orion was the main remaining conditions precedent to the Long Stop Date. The gross proceeds of the Bond Offering currently sits into a USD escrow account pending the satisfaction of the last conditions precedent on or prior the Long Stop Date.
Stormcrow Capital acted as advisor to Nemaska Lithium and facilitated the Orion streaming transaction.
Source: Company Press Release