Embattled lithium development company Nemaska Lithium on Thursday announced that Guy Bourassa would step down. He would leave the management and vacate his seat on the board with immediate effect.
“Given the restructuring the corporation is undergoing and the current market conditions, we mutually agreed that it was in the best interest of the corporation to undertake the next steps with a new approach and renewed leadership,” said chairperson Jacques Mallette.
Nemaska is restructuring under the supervision of the Superior Court of Quebec and PricewaterhouseCoopers, as monitor of its business and financial affairs, after the company entered creditor protection in December.
A sale and investor solicitation process would get under way in late February, with a target of closing a transaction in mid-August.
Mallette and the corporation’s management team will oversee the restructuring operations.
Nemaska’s Whabouchi project, in Quebec, is facing cost overruns of about $300-million. It tried to negotiate a deal with mine financier, the Pallinghurst Group, to secure up to C$600-million. But with a deal yet to be announced, the company suspended operations in October and laid off all but 30 employees.