🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Mason Resources sells Lac Guéret property to NMG

EditorEmilio Ghigini
Published 01/22/2024, 07:33 AM
© Reuters.
NMG
-

TORONTO - Mason Resources Inc. (TSXV: LLG) (OTCQX: MGPHF) has entered into an agreement with Nouveau Monde Graphite Inc. (NYSE: NMG) (TSXV: NOU) to sell its Lac Guéret Property, which is slated for the development of the Uatnan Mining Project. The transaction will see Mason receive over 6 million NMG common shares and a cash payment upon the project's commercial production start.

The asset purchase agreement, dated January 21, 2024, stipulates that Mason will obtain 6,208,210 common shares of NMG, equating to a 143% premium based on the Lac Guéret Property's implied market value and 9.25% of NMG's pro forma issued and outstanding common shares. Additionally, Mason is set to receive $5M in cash once the Uatnan Mining Project commences commercial production.

Mason's shareholders are expected to benefit from this deal by becoming significant stakeholders in NMG at a time when the company is advancing rapidly. This strategic move provides Mason with exposure to NMG's commercial activities with leading battery and electric vehicle manufacturers, such as Panasonic (OTC:PCRFY) Energy Co. Ltd., and positions Mason to capitalize on the projected rise in graphite prices, particularly following recent export restrictions by China.

The transaction, which is subject to standard closing conditions, is anticipated to be finalized on or before January 31, 2024. Upon completion, it will supersede and terminate previous agreements between the two companies.

Nouveau Monde Graphite aims to establish a fully integrated source of carbon-neutral battery anode material in Québec, Canada, serving the lithium-ion and fuel cell markets. Mason, while divesting from the Lac Guéret Property, remains the largest shareholder of Black Swan Graphene Inc., focusing on graphene production.

The transaction's financial advisor is Paradigm Capital Inc., and legal affairs are managed by Davies Ward Phillips & Vineberg LLP. This move is seen as a significant step in strengthening Québec's position in the global graphite industry and advancing the sustainable energy revolution.

This article is based on a press release statement from Mason Resources Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.