A Canadian lithium company, which operates one of the richest lithium spodumene deposits in the world, has closed a multimillion dollar offering to develop its flagship operation.
Nemaska Lithium announced in a statement this week that it has priced and closed the books on its $350 million bond offering to advance and further develop its Whabouchi property, the second most significant lithium spodumene deposits in the world.
“The proceeds of the Bond Offering will, upon disbursement to the Corporation, be used for the payment of capital expenditures, operating expense and financing costs associated with the development of the Corporation’s Whabouchi mine and Shawinigan plant,” Nemaska said in a statement.
Spodumene concentrate produced at the Whabouchi mine will be processed at the company’s Shawinigan plant.
Over a 33-year Life of Mine (LOM), Nemaska will look to convert around 7 million tonnes of spodumene concentrate. This would be equal to 770,000 tonnes of battery grade lithium hydroxide and around 361,000 tonnes of battery grade lithium carbonate.
Nemaska Lithium intends to become a lithium hydroxide supplier and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles.