"This purchase is strategic move on our part to obtain a property that can produce technical-grade spodumene, opening up the glass market to Nemaska. To date, the metallurgy results from the spodumene at our Whabouchi project indicates that battery-grade lithium carbonate and lithium concentrate for ceramic applications can be produced from our ore. This purchase allows us to cover the full spectrum of the global lithium demand." commented Mr. Guy Bourassa, President and CEO of Nemaska.
After careful consideration, Nemaska has purchased 100% interest in the property for $30,000 cash and the issuance of 500,000 shares and 500,000 share purchase warrants at a price of $0.60 per share for a period of 24 months from closing. The agreement includes an adjustment clause for the number of shares to be issued in favour of Everton if the Corporation has not started the process to separate its lithium related assets from its other exploration assets on or before June 30, 2011.
In such case, the Corporation will issue an additional 250,000 shares and 250,000 share purchase warrants. The property is subject to a 1% NSR royalty that can be purchased for $1,000,000. The shares and share purchase warrants to be issued will be subject to an agreed 6 month hold period from issuance. This agreement is subject to the approval of the regulatory authorities.
Nemaska Exploration Inc. is a mineral exploration company involved in the James Bay region of Quebec. Its main assets are the Whabouchi (about 1,716 hectares), Lac Levac (about 9,200 hectares), Lac Arques (about 39,470 hectares), and Lac des Montagnes (about 12,740 hectares) properties, all 100 % owned.
These properties are contiguous and cover about 85 km of the Lac des Montagnes green belt polymetallic formation. They are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (380 km) and are located near the Cree community of Nemaska and the Nemiscau airport.