MONTRÉAL - Nouveau Monde Graphite Inc. (NYSE: NMG, TSX.V: NOU), a Canadian mining company, has secured significant financial commitments and offtake agreements with Panasonic (OTC:PCRFY) Energy and General Motors (NYSE:GM), marking a substantial stride in its Phase-2 development for natural graphite anode material production. These agreements are expected to cover around 85% of NMG’s projected output for its fully integrated production facility from ore to battery materials.
The company announced multiyear offtake agreements to supply a combined annual volume of 36,000 tonnes of active anode material to these anchor customers. Alongside this, NMG has received an aggregate investment of $87.5M from various partners, including a $50M tranche from Panasonic and GM, to further the development of its Matawinie Mine and Bécancour Battery Material Plant.
Strategic partner Mitsui and long-term investor Pallinghurst have contributed a combined $37.5M. These funds will be used to repurchase convertible notes previously issued by NMG. With these financial arrangements, NMG aims to secure future funding of up to $275M, subject to specific conditions and ownership thresholds.
The investments and agreements are seen as a testament to the company's bankability and are expected to bolster the commercialization of a local and traceable value chain for the electric vehicle market in North America. This move comes at a time when the market dynamics favor NMG's local production due to recent limitations on Chinese graphite exports and stringent U.S. sourcing requirements for battery materials.
The transactions are subject to customary regulatory approvals, including those from the TSX Venture Exchange and NYSE. NMG has also invited shareholders, analysts, and media to an Investor Briefing hosted by the management team today to discuss these developments.
NMG is positioning itself as a North American leader in responsible mining and advanced manufacturing, aiming to supply carbon-neutral, reliable, and sustainable natural graphite to the growing electric vehicle and lithium-ion battery market. This press release is based on a press release statement and provides a factual overview of the company's recent agreements and investments.
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