Nouveau Monde Graphite (TSXV: NOU; NYSE: NMG) has entered right into a framework settlement with Mitsui & Co. and Panasonic Power establishing the phrases of a industrial relationship that allows the subsequent growth steps of the corporate’s ore-to-battery-market built-in graphite mission in Quebec.
Underneath the strategic partnership framework, there may be non-binding memorandum of understanding on an offtake by Panasonic of a good portion of NMG’s inexperienced energetic anode materials out of the corporate’s built-in Section 2 industrial manufacturing amenities over a multi-year time period. Each NMG and Panasonic Power intend to work collectively within the upcoming months to ascertain a definitive offtake settlement.
“We’re very happy to be collaborating on this strategic partnership with NMG, which can permit us to discover the opportunity of establishing an environmentally pleasant provide chain in North America via a totally new built-in anode manufacturing in Canada,” mentioned Kazuo Tadanobu, president and CEO of Panasonic Power, in a launch.
Individually, NMG has entered into financing agreements with every of Mitsui, Pallinghurst and Investissement Québec that may see the corporate elevate gross proceeds of US$50 million via the issuance of unsecured convertible notes. Underneath the personal placement, Mitsui will subscribe for US$25 million in convertible notes, whereas Pallinghurst and Investissement Québec will every subscribe for US$12.5 million. In a press release, Man Leblanc, CEO of Investissement Québec, mentioned the funding displays the group’s dedication to establishing Quebec as a number one North American hub for lithium-ion batteries.
Nouveau Monde will use the proceeds of this funding to assist the finalization of the design, operation, advertising and marketing and company parameters of the Section 2 industrial built-in operations, which comprise the Matawinie mine and Bécancour battery supplies plant.
The purpose is to proceed with mission financing and the ultimate funding determination on each the Matawinie mine and Bécancour facility as soon as that optimization section is accomplished and all operational variables are properly understood. As soon as that call is made, Nouveau Monde anticipates a 28-month development interval to convey its operations to industrial manufacturing.
Nouveau Monde is at present working in the direction of growing a totally built-in supply of carbon-neutral battery anode materials in Quebec.
“I’m delighted to embark on this transformative partnership with skilled and industry-leading companions Mitsui and Panasonic Power,” mentioned Nouveau Monde president and CEO Eric Desaulniers. “It’s set to supply NMG with a strong industrial basis for deploying our Section 2 industrial operations.”
This summer season, the corporate launched a feasibility examine on the Matawinie mine mission and Bécancour battery materials plant, outlining an built-in Section 2 graphite operation with a mixed after-tax internet current worth of $1.6 billion and inside fee of return of 21%. The initiatives are situated inside a 150-km radius of Montreal.
Shares of NMG rose 5% on the TSX Enterprise Alternate earlier than midday in Toronto. The corporate has a market capitalization of $403 million.