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Quebec invests $ 10 million in Nemaska Lithium

Quebec invests $ 10 million in Nemaska Lithium

Through its investor arm, Quebec grants $ 10 million in the form of share capital in the draft Nemaska ​​Lithium in Shawinigan, Mauricie.

 "This is a bet that has virtually doubled in value due to the appreciation of the action," says Guy Bourassa President and CEO of Nemaska.

Quebec's decision to invest in this project was made in June 2013, under the previous government. At this time, Nemaska ​​had to realize its investment in Valleyfield, Montérégie, but the project was redirected in 2015 to the old facilities of the Laurentide paper mill in Grand-Mère.

For all practical purposes, this participation comes close the financing required to initiate the experimental hydrometallurgical plant. The federal government, as a non-repayable grant, has already confirmed support of $ 13 million.

Private partners will also contribute in different forms. The high purity lithium that wishes to produce Nemaska ​​is in high demand by the industry of electronic devices.

If the results are positive, a commercial plant will follow. as there would be found a set of activities including mining in northern Quebec, a project that will call a total investment of $ 500 million, including $ 300 million in Shawinigan.

In the end, hundreds of jobs will be created in Shawinigan. However, if the project is realized, the city of Shawinigan must acquire the old paper mill. She hoped for this purpose a financial boost from the Quebec government. But according to what VAT learned, no public program would lend itself to this kind of transaction. Nobody in Shawinigan City Hall could not comment on the case.

Friday, the title of Nemaska ​​Lithieu closed at $ 0.66 on the Toronto Stock Exchange.

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Master of Economics, University of Harvard, worked as an analyst in a few large companies and specializes in many countries. Currently owned by a large company that conducts assessment of investment attractiveness in the various countries of the world.