Q: Good Morning Team,
As you know, Nemaska Lithium announced C$280,000,000 bought deal at the price of $1.00 which was substantially lower than the SP as of yesterday, 22 May. The stock has fallen by more than 16% today.
In the news we read: Guy Bourassa, President and CEO of Nemaska Lithium, commented on these recent announcements: "Today marks a big day in the life of Nemaska Lithium, as we are announcing the last piece of financing required to start the commercial development of the Whabouchi lithium mine project. This project financing package, which covers capital expenditures of both the Whabouchi mine and Shawinigan electrochemical plant, project contingencies, working capital requirements and financing costs will ensure the future of Nemaska Lithium. This will also allow the Corporation to stay on target to initiate the commissioning of the Whabouchi mine by second half of calendar year 2019 and start commissioning the Shawinigan electrochemical plant during the first half of calendar year 2020".
My main question is how trustworthy is this management? Was Guy Bourassa once ceo of T-Rex which made three wheel fake motorcycles and had difficulty raising money because of him? I also would like to know if you accept that this financing deal really is the last piece? How typical is the way they have been raising money in the past year alone? Would you be a buyer at these levels? Would you average down if your cost was at $2.00?
I believe lithium will be a big player in a changing energy world but I have been burned by speculative mining projects before and I wonder if NMX is going to next? Would it struggle for many years well beyond 2020 and drain its investors year after year with empty promises?
Thank you for your valuable insight as always!
As you know, Nemaska Lithium announced C$280,000,000 bought deal at the price of $1.00 which was substantially lower than the SP as of yesterday, 22 May. The stock has fallen by more than 16% today.
In the news we read: Guy Bourassa, President and CEO of Nemaska Lithium, commented on these recent announcements: "Today marks a big day in the life of Nemaska Lithium, as we are announcing the last piece of financing required to start the commercial development of the Whabouchi lithium mine project. This project financing package, which covers capital expenditures of both the Whabouchi mine and Shawinigan electrochemical plant, project contingencies, working capital requirements and financing costs will ensure the future of Nemaska Lithium. This will also allow the Corporation to stay on target to initiate the commissioning of the Whabouchi mine by second half of calendar year 2019 and start commissioning the Shawinigan electrochemical plant during the first half of calendar year 2020".
My main question is how trustworthy is this management? Was Guy Bourassa once ceo of T-Rex which made three wheel fake motorcycles and had difficulty raising money because of him? I also would like to know if you accept that this financing deal really is the last piece? How typical is the way they have been raising money in the past year alone? Would you be a buyer at these levels? Would you average down if your cost was at $2.00?
I believe lithium will be a big player in a changing energy world but I have been burned by speculative mining projects before and I wonder if NMX is going to next? Would it struggle for many years well beyond 2020 and drain its investors year after year with empty promises?
Thank you for your valuable insight as always!
