Canada Lithium finalises funding for mine and plant

first_imgCanada Lithium has announced that Scotiabank and Caterpillar Financial have provided credit-approved commitments to provide a C$75 million, five-year debt facility to finance Canada Lithium’s Quebec Lithium open pit mine and process plant near Val d’Or. In addition to the debt facility, Caterpillar will provide up to US$17 million lease financing for the mobile mining equipment. Construction of the Quebec 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 project will produce in excess of 20,000 t/y of battery-grade lithium carbonate destined for export abroad and for markets in Quebec. Caterpillar has completed credit approvals to provide up to US$17 million in equipment lease financing for the main components of the mining equipment fleet. 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. The 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.last_img read more