The Nemaska exploration camp at Whabouchi. (Image: Nemaska Lithium)
QUEBEC CITY – Nemaska Lithium has had a tough couple weeks – cost overruns and now termination of a major supply agreement.
Just last week the company announced that cost overruns at its Whabouchi lithium mine/mill and the Shawinigan electrochemical plant were soaring a further $375 million. Nemaska share prices fell from $0.60 to $0.30 on that news.
Prices were a penny or two on either side of $0.30 today after the latest announcement – the termination of a multi-year supply contract with Livent Corp. (formerly FMC Corp.) The agreement was for 8,000 tonnes of lithium carbonate to be delivered in the next seven years. The first shipment was to be made on April 1, 2019.
The announcement came as Nemaska sought to amend the original agreement. If Nemaska withdraws, it will have to repay a US$10 million payment received two years ago from Livent plus an equal amount as a termination fee. Livent says it wants to take the issue to arbitration.
Read more about the Whabouchi mine and concentrator at www.NemaskaLithium.com.