James Bay, page-35

Nemaska Lithium Inc. (TSX:NMX,OTCQX:NMKEF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. (together the “Underwriters”), under which the Underwriters have agreed to purchase on a bought deal basis 47,620,000 common shares of the Corporation (the “Shares“) at a price of $1.05 per Share for gross proceeds of $50mm (the “Offering“). The Shares will be offered in all provinces and territories of Canada pursuant to a short form prospectus to be filed by Nemaska Lithium, as well as in the United States under applicable registration statement exemptions and such other jurisdictions as may be agreed to by Nemaska Lithium on a private placement basis.
The Corporation has also granted the Underwriters an over-allotment option to purchase up to that number of additional Shares equal to 15% of the Shares purchased pursuant to the Offering, exercisable in whole or in part at any time up to 30 days after and including the closing date of the Offering.
The Corporation intends to use the net proceeds of the Offering for ongoing development of the Whabouchi lithium mine, the Whabouchi spodumene concentrator and the Shawinigan hydrometallurgical plant (collectively, the “Lithium Project“), including for ongoing engineering work, infrastructure construction, down-payments for the order of long lead items and general working capital purposes.
The Offering is expected to close on or about June 29, 2017, and is subject to the receipt of all necessary regulatory approvals, including, but not limited to, the approval of the Toronto Stock Exchange and subject to certain other conditions.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from such registration requirements.

Update on the Lithium Project Debt Financing

Nemaska Lithium also reports that it has been actively engaged in discussions with prospective lenders regarding terms and conditions of the project debt financing to fund the Lithium Project (the “Project Debt Financing“), and has recently begun the due diligence phase of the process with certain parties. The Corporation is confident to enter into an agreement with the lenders by the end of Q3, 2017.

Update on Ongoing Discussions with Ressources Québec

The Government of Québec, Nemaska Lithium’s largest shareholder through Ressources Québec’s holding of 29.4 million shares, remains highly supportive of Nemaska Lithium and the Lithium Project. Nemaska Lithium and Ressources Québec remain in ongoing discussions regarding a potential future capital investment in the Corporation to further support the realization of the project. To date, no agreement has been reached between the parties and Nemaska Lithium will continue to evaluate its financing alternatives with a view of maximizing shareholder value.

Update on Overall Project Progress

Guy Bourassa, president & CEO of Nemaska Lithium, commented on these recent announcements: “The Offering will put Nemaska Lithium on strong financial footing to continue development work associated with the Lithium Project. This financing will allow Nemaska Lithium to make further progress in building the required facilities at the Whabouchi site and the commercial hydrometallurgical plant at the Shawinigan site, which will allow Nemaska Lithium to stay on target to initiate commercial-scale production by Q1 2019. Eventually, as Nemaska Lithium becomes an emerging low-cost producer in the global lithium marketplace, it will be ideally positioned to capitalize on the advantageous lithium market demand dynamics that we expect in the near and medium term.”
“We are also encouraged by the ongoing discussions regarding the Project Debt Financing. These developments, coupled with the ongoing support received from Resources Québec and other key shareholders, have reiterated what management and the Board have known all along – that Nemaska Lithium is poised to become a leading player in the global lithium market.”