Nemaska Lithium Inc. is letting go of 64 employees to help ensure optimization of current cash flow and the continuation of its Quebec-based Whabouchi lithium project, for which it is adjusting the date of implementation due to delays in finalizing financing.
The date of employment termination will occur between the end of October and the end of December, depending on the site, according to an Oct. 15 news release.
The company said it is still confident that it can complete the project, but it cannot specify a date for closing the required financing as it has not yet concluded a definitive agreement with The Pallinghurst Group for a C$600 million investment.
Nemaska Lithium remains committed to completing the financing so it can accelerate the deployment of the project as soon as possible, and said it will also pursue its efforts to obtain a favorable decision from the Supreme Court of Quebec, following its application in connection with its arrangement proceedings and seeking the discharge of the security relating to the US$350 million bonds, which were reimbursed as prescribed.
Meanwhile, the company will continue activities at the phase-one Shawinigan demonstration plant until its complete shutdown at the end of December.