Nemaska Lithium Inc. signed a definitive agreement to sell its Sirmac lithium project in Quebec to ABE Resources Inc. for C$250,000 in cash and 15 million common shares along with an assumed pre-existing 1% net smelter royalty on certain Sirmac claims, the companies said in separate Dec. 14 statements.
As part of the deal, Nemaska will have a right of first refusal to purchase Sirmac concentrate and be entitled to receive a 2% cash fee on all proceeds from the sale of Sirmac lithium products that it will not purchase. Nemaska will also act as an exclusive marketing agent for Sirmac products.
In connection with the transaction's share consideration, Nemaska will have a pre-emptive right in any future ABE equity offering for as long as it holds at least a 10% shareholding in the company. The sale remains subject to regulatory approval and is expected to close shortly after being approved.
Meanwhile, Nemaska said it received the mining lease for its Whabouchi lithium project in Quebec from the Ministry of Energy and Natural Resources. The lease comprises mining and surface rights and is valid for 20 years, with an option for renewal every 10 years for the duration of the mining operation.
According to Nemaska, it has secured all the major permits required for the construction and operation of the Whabouchi mine.