The buyers' group, comprised of Nemaska's largest secured creditor, Orion Mine Finance, Investissement Québec and The Pallinghurst Group, will assume C$146.5 million in liabilities and acquire certain Nemaska assets by way of a reverse vesting order to be sought from the Superior Court of Quebec.

This will result in Pallinghurst and Investissement Quebec acquiring, on a 50-50 basis, all the shares of the Nemaska entity which will emerge from the CCAA proceedings and subsequently be amalgamated with entities controlled by Orion to operate the lithium business, referred to as New Nemaska Lithium.

Nemaska revealed a C$375 million funding shortfall for its Whabouchi lithium mine and electrochemical plant development in Quebec and Ontario, Canada, in February 2019 and spent much of the past year trying to find a funding solution to stay afloat before filing for creditor protection under CCAA in December.

It said it had incurred capex of $392 million through September 30, 2019, at the Whabouchi mine and the Shawinigan electrochemical plant of a total project budget of $1.269 billion.

Pallinghurst and Investissement Quebec have indicated their intention to invest after closing up to $600 million in New Nemaska Lithium to finance the completion of the Nemaska lithium mine and plant project development.

The Residual Nemaska Lithium company will hold Nemaska's cash on hand, which at the end of June 2020 totalled $42.1 million, and will present a plan of arrangement to its creditors. Nemaska shareholders will not receive any payments or distributions in connection with the CCAA proceedings, nor will they hold any interest in New Nemaska Lithium following the completion of the plan of compromise or arrangement.

Nemaska Lithium will seek the approval for the transaction on or about September 14, and if approved, closing by October 15.