Nemaska Lithium Announces Workforce Reduction
QUEBEC CITY, Jan. 27, 2020 — Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) announces a further reduction, today, of its workforce in connection with the ongoing process under the Companies’ Creditors Arrangement Act (CCAA) and its work aimed at formalizing an eventual plan of arrangement acceptable to its creditors and the Court.
The 29-employee layoff is the result of a review of the essential activities that the Corporation must carry out to ensure the development of the Whabouchi project, while preserving its cash in anticipation of the examination of available alternatives, including any refinancing to allow an orderly resumption of the project. Once the downsizing is completed, little over 30 employees will remain at the Corporation’s employ.
“It is with great sadness that we must let go our colleagues. Their hard work over the years, sometimes under challenging circumstances, allowed us to advance the Whabouchi project to the maximum while awaiting the required financing to complete it. I would like to sincerely thank them for their important contribution,” said Guy Bourassa, president and chief executive officer. “This difficult decision was inevitable at this point. We are offering all the support and guidance to the employees that are leaving us, and which may help them towards their next steps. We sincerely hope to have the privilege to welcome back many of them once we are able to resume the project.”
More information regarding the Corporation’s situation, decisions or actions will continue to be provided on an ongoing basis, as required by applicable law or as may be determined by the Corporation or the Court. You can also refer to the Monitor’s website for more information on the CCAA procedures at https://www.pwc.com/ca/en/services/insolvency-assignments/nemaska-lithium-inc.html.
About Nemaska Lithium
Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, the Corporation intends to facilitate access to green energy, for the benefit of humanity.
The Corporation intends to operate the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade, and the spodumene concentrate to be produced thereat will thereafter be processed at the Shawinigan plant using a unique membrane electrolysis process for which the Corporation holds several patents.
For more information, visit www.nemaskalithium.com.
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