TSX- and NYSE-listed Nouveau Monde Graphite (NMG) has secured equity investments totalling $213-million from Canada Growth Fund (CGF), the government of Quebec through Investissement Québec (IQ) and global integrated energy company Eni.

The private placement, together with a planned concurrent bought-deal public offering of subscription receipts that may garner $84-million, effectively concludes the equity component of the financing package for Phase 2 of the Matawinie mine, in Canada’s Nitaskinan territory north of Monréal.

The debt component of the funding package is also concluded, with NMG having secured senior project debt facilities of $335-million, which positions NMG to advance early works on Matawinie and advance toward a final investment decision.

Notably, Phase 2 development of the mine includes design, engineering and early construction preparation activity.

Pursuant to the private placement, NMG will issue an aggregate 115-million shares at a price of $1.84 apiece. The participation of IQ and CGF in the private placement builds on their prior support for the advancement of the Matawinie mine and their focus on supporting an ore-to-battery material value chain in the region.

Given that each of IQ and CGF beneficially owns or has control or direction over common shares representing more than 10% of NMG’s stock, the private placement insofar as IQ and CGF are concerned is a related party transaction.

In turn, Eni’s investment reflects growing strategic interest from global energy and industrial players in secure, carbon-neutral critical minerals supply. Eni will have certain board nomination and observer rights, as well as pre-emptive and top-up rights in connection with future offerings and certain dilution events.

NMG will also negotiate terms with Eni on a potential offtake agreement in future for 15 000 t/y of graphite concentrate from Phase 2 of Matawinie, or the equivalent in active anode material.

The private placement is expected to close on or about May 15.

Meanwhile, the public offering comprises an agreement with a syndicate of underwriters co-led by BMO Capital Markets and National Bank Capital Markets pursuant to which NMG will issue, on a bought-deal basis, 45-million subscription receipts at a price of $1.84 apiece.

The company has granted the underwriters an option to purchase up to an additional 15% of the offering to cover over-allotments, if any, for 30 days following closing of the offering.

NMG emphasises that the public offering is dependent on shareholder approval for the private placement, which will be garnered during a special meeting on May 13.

PROJECT PROGRESS

NMG has already awarded contracts representing more than 50% of Matawinie’s capital expenditure, which includes contracts for construction preparation, engineering and procurement.

The company’s construction manager, Pomerleau, has mobilised on site to supervise the start of preliminary civil works that will start in coming weeks.

The mine is poised to be the world's first all-electric openpit mine, producing 100 000 t/y of graphite concentrate.

NMG has acquired a 143 000 m² brownfield site adjacent to its greenfield property to build an active anode material production facility dedicated to Panasonic Energy – a subsidiary of Panasonic Holdings Corporation.

The facility is planned to be a 13 000 t/y battery material plant called Bécancour.

NMG plans to align construction and commissioning timelines of the plant with that of the Matawinie mine.