https://business.financialpost.com/
London-based Pallinghurst Group, betting on ‘an electric vehicle revolution,’ has proposed a deal that could make it Nemaska’s largest shareholder
After months of funding uncertainty, Nemaska Lithium Inc. on Friday announced a tentative agreement to secure as much as $600 million to build its proposed hard rock lithium mine and electrochemical plant in Quebec.
The project, which could create a new supply of the lithium needed for batteries in electric vehicles, has drawn international attention from battery makers and investments from Japan’s Softbank Group Corp. and from Investissement Quebec.
But cost overruns and shifting evaluations about lithium demand have combined to push Nemaska’s stock price down more than 80 per cent from its peak less than two years ago.
Now, London-based Pallinghurst Group, whose managing partner Arne Frandsen is betting on “an electric vehicle revolution,” has proposed a deal that could make it Nemaska’s largest shareholder: It signed a letter of intent to buy $200 million worth of the company’s shares at 25 cents apiece, plus an additional $400 million, if necessary, to ensure the project is fully funded.
“We wouldn’t have announced and put our name behind this today unless we had comfort that we would get there in the end,” Frandsen said on a conference call on Friday with Nemaska investors. Pallinghurst has 90 days to complete its due diligence.
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