Up to eight bids for Nemaska Lithium

Photo: Nemaska
The company is seeking $ 1.1 billion in the aim of being able to transform, in an electrochemical manufacturing facility in Shawinigan, ore spodumene extracted from the mine Whabouchi in lithium salts that have added value.

Nemaska Lithium, which is placed to protect itself from its creditors since the 23rd of December, could receive up to eight proposals for the part of a buyer or investor to restart its activities.

This is the number of bidders who had qualified as of the date of 10 June, according to the latest report of the controller and the folder PricewaterhouseCooper, in which it is stated that 13 letters of intent had been received. No name has been disclosed. “The debtors and the financial advisors working with qualified bidders will be […] to ensure that they are able to make an offer before the June 30 deadline “, is it stated in the document.

Nemaska, who got $ 130 million from the quebec government in the framework of its mounting financial initial, did not want to comment on the process Friday.

The company is seeking $ 1.1 billion in the aim of being able to transform, in an electrochemical manufacturing facility in Shawinigan, ore spodumene extracted from the mine Whabouchi in lithium salts that have added value. These would then be sold to manufacturers of materials for cathodes for rechargeable lithium-ion battery.

Initially estimated at 875 million, the invoice of the project had jumped to $ 1.4 billion due to cost overruns, proved to be last year. A potential investment of $ 600 million of the firm’s london-based Group Pallinghurst has been considered, but it has decided, at the end of December, not to extend the window exclusive of the discussions.

The title of Nemaska Lithium has been removed from the TSX venture Exchange in February. Investissement Québec, the financial arm of the State of quebec, was at this time the largest shareholder with a stake of around 13 %.

For the Grouping of the shareholders of Nemaska, which claims to represent 1,700 people holding 130 million of shares and which attempts to ensure that security holders do not lose their bet in the event of a buyback and the privatization of the company, the number of qualified bidders is encouraging. “It can raise the bids, explained the president of the board of directors, Alain Clavet. There is hope that the outcome [of the process] will be followed by a merger in which shareholders might obtain money or shares of the new company. “

The grouping is, however, well aware that they are the holders of the debt Nemaska Lithium and its other creditors who will have priority in the framework of the ongoing process.

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