Canada’s Nemaska Lithium has appointed Jacques Mallette as chairperson of the board to guide the company’s management in its efforts to carry out the restructuring under way under the creditor protection entered into last month.
Mallette, who has acted as a director of the corporation since March 8 last year, was the CEO of a major company between 2007 and 2009, during which time the company sought protection from its creditors in Canada and the US.
In a statement issued by Nemaska on Monday, Mallette said that he was honoured by the confidence his fellow directors had placed in him with the appointment.
“We are still convinced that the corporation’s Whabouchi project is of great importance for Québec’s economic development and a key player in the worldwide increasing lithium-ion battery industry. As such, we have at heart to successfully deliver the project in a timely manner and in the best interest of all stakeholders,” said Mallette.
Nemaska in December moved to seek creditor protection, as the company continued talks with mine financier the Pallinghurst Group to secure up to C$600-million to advance the Whabouchi project, in Quebec.
With a deal yet to be announced, the company suspended operations in October and laid off employees. The project is facing cost overruns of about $300-million.
The appointment of Mallette follows the decision of Michel Baril to step down as chairperson of the board. Baril will remain a member of the board of directors.
“It has been a great honour for me to be part of Nemaska Lithium’s adventure as chairman from the very beginning of the Whabouchi project in 2009. As we face significant challenges, I would like to offer my entire collaboration and support to Mr Mallette in his new role, and I am fully confident that the team in place have all the resources needed to carry out this great project,” added Baril.
Nemaska Lithium continues its review of strategic alternatives with its legal and financial advisers in order to restructure its capital.