TSX: CLQ; U.S. OTCQX: CLQMF
TORONTO, Feb. 13, 2012 /CNW Telbec/ - Canada Lithium Corp. (TSX: CLQ)
(OTCQX: CLQMF) is pleased to announce that The Bank of Nova Scotia
("Scotiabank") and Caterpillar Financial Services ("Cat Financial")
have given credit-approved commitments to Canada Lithium Corp. to
provide a C$75-million, five-year debt facility to finance Canada
Lithium's Québec Lithium open pit mine and process plant near Val d'Or,
Québec. The debt facility will be supported by a financial guarantee
from Investissement Québec. In addition to the debt facility, Cat
Financial will provide up to US$17-million lease financing for the
mobile mining equipment.
Construction of the Québec Lithium Project began in August 2011 and is
progressing on schedule and on budget. Commissioning of the
US$207-million project will commence in late 2012, and the Company is
in advanced discussions in respect of lithium carbonate off-take
agreements with a number of potential domestic and international
customers. Sales of battery-grade lithium carbonate to a global market
heavily focused on battery makers in South Korea, China and Japan are
anticipated to begin in the first quarter of 2013. At full production,
the Québec Lithium Project would produce in excess of 20,000 tonnes of
battery-grade lithium carbonate per year destined for export abroad and
for markets in Quebec.
Investissement Québec Guarantee, Scotia Underwriting Commitment, Funding
The C$75-million debt financing, C$60 million of which has been
underwritten by Scotiabank as Mandated Lead Arranger, with the
remaining C$15-million to be provided by Cat Financial, will be
supported by a partial financial guarantee from Investissement Québec,
a Québec government agency established to foster economic development.
The debt facility will be secured by the assets of the Québec Lithium
Project and contains normal commercial terms including a fee for the
Investissement Québec guarantee. The facility is credit-approved
subject to standard project financing conditions, including permitting
requirements, legal documentation and completion of the remaining final
project funding requirement of approximately C$25 million. Initial
drawdown of the debt facility is expected in the second quarter of
In addition to its participation in the project debt facility, Cat
Financial has completed credit approvals to provide up to US$17 million
in equipment lease financing for the main components of the mining
equipment fleet. The equipment lease is subject to fulfilment of
standard conditions precedent to funding.
As at December 31, 2011, Canada Lithium had an unaudited cash balance of
approximately C$100 million.
Project Update - Construction on Schedule and on Budget
Construction of the integrated mine and lithium carbonate processing
facility, which began with site-clearing in August 2011, has reached a
'milestone' stage as the process plant building (structural steel and
metal cladding) is now 75% complete. Mine workshop and office facility
are 85% complete. Over the next three months, EPCM engineering group
GENIVAR will install mechanical and electrical components throughout
the process plant, in advance of major equipment items such as
crushers, ball mills, kilns and hydrometallurgical components that are
scheduled to begin arriving on-site in April and May 2012. Photographs
of the site construction work can be viewed at www.canadalithium.com.
Canada Lithium President and CEO Peter Secker said, "the involvement of
the Québec Government and Investissement Québec has been vital in
underpinning this debt financing and we are very pleased with the
support shown by The Bank of Nova Scotia and Cat Financial. The Canada
Lithium team is looking forward to completing the transaction and
cementing these relationships in the coming months."
About Canada Lithium Corp.
The Company holds a 100% interest in the Québec Lithium Project near Val
d'Or, the geographical heart of the Québec mining industry. The Company
is in the midst of building an open-pit mine and processing plant
on-site with capacity to produce approximately 20,000 tonnes of
battery-grade lithium carbonate. Metallurgical tests have produced
battery-grade lithium carbonate samples. The Company trades under the
symbol CLQ on the TSX and on the U.S. OTCQX under the symbol CLQMF.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".
Forward-looking information is based on reasonable assumptions that have
been made by the Company as at the date of such information and is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. The Company does not
undertake to update any forward-looking information referenced herein,
except in accordance with applicable securities laws.
SOURCE CANADA LITHIUM CORP.
For further information:
Peter Secker, President and CEO (416) 361-2821
Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355 or email firstname.lastname@example.org
Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020 or email email@example.com
Please visit the Canada Lithium website at www.canadalithium.com. For the latest news on the growing demand for lithium-ion batteries for electric and hybrid vehicles and electrical grid-storage solutions, click on "Latest News on Electric Vehicles" on the Home Page.
The Company's corporate office is at 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON, M5H 2Y4