NextSource Materials Announces New Chair of the Board
NextSource Materials Announces New Chair of the Board
NEWS RELEASE – TORONTO, August 24, 2020
NextSource Materials Inc.’s (TSX:NEXT) (OTCQB:NSRCF) (“NextSource” or the “Company”) Molo
Graphite Project in Madagascar ranks as one of the largest-known and highest quality flake
graphite deposits in the world . The Company continues to work towards advancing the
development and construction of mining infrastructure at the Molo site.
In furtherance of the Company’s efforts , NextSource is pleased to announce that Brett Whalen ,
CFA, has been appointed Chair of the Board effective immediately. Mr. Whalen takes over the role
of Chair from Dean Comand , who served as the Company’s chair since December 2019 . Mr.
Comand remains committed advanc ing to the Molo Graphite project and he w ill continue to serve
as an independent director of NextSource.
Mr. Whalen , who joined the NextSource board on July 20 th, 2020, bring s over 20 years of
investment banking and M&A expertise, spending over 16 of those years at Dundee Corporation
(“Dundee Corp.”). During his tenure at Dundee Corp., Mr. Whalen was directly involved in
completing approximately $2 billion in M&A deals and helped raise over $10 billion dollars in capital
for resource sector companies.
In addition to Mr. Whalen’s capital markets experience, he brings significant general knowledge of
the graphite, vanadium and the battery materials industries that will assist in securing the capital to
build the Company’s Molo mine and accelerate strategic plans for involvement in downstream
value-added products such as graphite foils and battery anode material.
Craig Scherba, President and CEO commented, “I want to thank Dean for his service as Chair and
welcome Brett to his expanded role with the Company. NextSource was fortunate to have had
Brett’s support while he was a portfolio manager at our largest institutional investor and we look
forward to his capital markets expertise assisting at this pivotal time in the Company’s development.
NextSource remains focused on raising the necessary capital to construct Phase 1 of the Molo
Graphite mine so the Company can realize production in 2021.”
NextSource Implements Compensation Payment Deferral Plan and PSU Policy
The completion of a CAD$2,000,000 non-brokered private placement in July 2020, which received
substantial support from existing shareholders , ensures the Company can operate well into 2021.
To extend existing cash resources as the Company works to secure project specific financing,
NextSource management has agreed to a plan to defer compensation payment by up to 30 percent
and until total project financing has been secured.
In recognition of the deferral and to further incentivize management to expedite securing project
financing upon the most favourable terms, the board proposes to implement a Performance Share
Units (“PSU”) plan for management. The PSU grant will be based on a Common Share value
above the current market price and subject to shareholder approval. The PSU grants will vest and
only be issued to management upon successfully achieving the full project financing milestone.
The total number of Common Shares granted to each member of management as part of the PSU
plan will be commensurate to the respective compensation amount being deferred . To further
incentivize management to secure project financing in a timely manner , the number of PSUs
granted will be reduced on certain deadline dates set out by the board if total project financing has
not been achieved by that date. The plan provides that all PSUs will expire at the end of 18 months
if total project financing has not been secured by this date.
Discussions with mine financiers continue in efforts to secure the US$24M required to fund Phase
1 production. Based on the most recent manufacturing lead time estimate, construction of the mine
infrastructure is projected to take 9 months with commissioning of the Molo mine in month 10.
About NextSource Materials Inc.
NextSource Materials Inc. is a mine development company based in Toronto, Canada and is in the
final development stage of its 100%-owned Molo Graphite Project in southern Madagascar. The
Molo Graphite Project is a fully permitted, feasibility-stage project that ranks as one of the largest-
known and highest quality flake graphite deposits in the world and is the only project with
SuperFlake® graphite.
The Company will be utilizing an all-modular build approach to constructing the Molo mine and in
two production phases. Phase 1 will produce 17,000 tonnes per annum (“tpa”) over the first two
years of production and Phase 2 producing a total of 45,000 tpa by year three. Offtakes are in place
for 100% of Phase 1 production.
For further information contact: +1.416.364.4911
Brent Nykoliation, Senior Vice President, Corporate Development at
[email protected] or Craig Scherba, President and CEO
Safe Harbour: This press release contains statements that may constitut e “forward-looking statements” within the meaning of applicable
Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on such forward -looking statements.
Forward-looking statements in this release relate to the results of the 2019 Feasibility Study, funding of the development of the Molo
Project, expectation and timing of raising the mine capital, implementation and commencement of the build-out of the Molo Project,
commencement of production at the Molo Project, commencement of procurement for mine infrastructure, the procurement of equipment to
construct a mine, value engineering, any and all product test results, and the permit application. These are based on current expectations,
estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ
materially from those anticipated by the Company and described in the forward -looking statements contained in this press release. No
assurance can be given that any of the events anticipated by the forward -looking statements will transpire or occur or, if any of them do so,
what benefits the Company will derive there from. The forward -looking statements contained in this news release are made as at the da te
of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward -looking
statements, whether as a result of new information, future events or otherwise, except as may be required by applicable sec urities laws.