NextSource Materials Announces US$20M Credit Facility with Vision Blue Resources
NextSource Materials Announces US$20M Credit Facility with Vision Blue
Resources
TORONTO, ON / ACCESS Newswire / January 30, 2025 / NextSource Materials Inc.
(TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") announces that it has secured
a drawdown credit facility (the "Facility") of up to US$20 million with Vision Blue Resources
Limited ("Vision Blue"). The proceeds of the Facility, which is non-dilutive to shareholders, will
be used as needed to progress the Company's Battery Anode Facility strategy, support the
continued ramp-up and growth of Molo, and for general working capital purposes.
Hanré Rossouw, President and CEO commented,
"The funding from Vison Blue enables us to complete the ramp-up and growth of the Molo
Graphite Mine while also continuing to advance our plans to develop Battery Anode Facilities.
The recent commencement of commercial sales of graphite concentrate and the strengthening of
our management team demonstrate the progress we have already made. With the continued
support from Vision Blue, we are making meaningful progress towards our vision of becoming a
leader in sustainably produced battery materials."
The Company may draw down on the Facility in four equal tranches and anticipates that it will
draw down the initial US$5 million tranche under the Facility prior to the end of January 2025.
Subsequent drawdowns will be determined based on the financial requirements of the Company
and the continued availability of the Facility. Interest will accrue on the amount drawn down
under the Facility at a rate of 15% per annum. The Facility is repayable on demand after June 30,
2025 and is secured by the assets of the Company. NextSource may fully repay the Facility at
any time without penalty or bonus.
Related Party Transaction
Vision Blue holds 47.7% of the Company's issued and outstanding shares (47.7% on a partially
diluted basis). Accordingly, the Facility constitutes a "related party transaction" as defined under
Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101").
The Company is not required to obtain a formal valuation in respect of the Facility. The
Company is exempt from the need to obtain minority shareholder approval per subsection
5.7(1)(f) of MI 61-101, as the Facility is on reasonable commercial terms that are not less
advantageous to the Company than if the Facility were obtained from a person dealing at arm's
length with the Company and the Facility is not convertible, directly or indirectly into equity of
the Company or a subsidiary of the Company. The Board of Directors of NextSource, with the
exception of Sir Mick Davis (being a Director of Vision Blue) who declared his interest and
recused himself, unanimously approved the Facility.
About NextSource Materials Inc.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada
that is intent on becoming a vertically integrated global supplier of battery materials through the
mining and value-added processing of graphite and other minerals.
The Company's Molo graphite project in Madagascar is one of the largest known and highest-
quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine
has begun production, with Phase 1 mine operations currently being optimized to reach its
nameplate production capacity.
The Company is also developing a significant downstream graphite value-add business through
the staged rollout of Battery Anode Facilities capable of large-scale production of coated,
spheronized and purified graphite for direct delivery to battery and automotive customers,
outside of existing Asian supply chains, in a fully transparent and traceable manner.
NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT"
and on the OTCQB under the symbol "NSRCF".
For further information about NextSource please visit our website
at www.nextsourcematerials.com or contact us:
Investors:
Brent Nykoliation, Executive Vice President +1 416 364
4911 [email protected] or Hanré Rossouw, President &
Media:
Michael Oke/Andy Mills +44 207 321 0000 [email protected]
Cautionary Note
This press release contains statements that may constitute "forward-looking information" or
"forward-looking statements" within the meaning of applicable Canadian and United States
securities legislation. Readers are cautioned not to place undue reliance on forward-looking
information or statements. Forward looking statements and information are frequently
characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "possible" and other similar words, or statements that certain events or
conditions "may", "will", "could", or "should" occur. Forward-looking statements include any
statements regarding, among others, the use of proceeds for the Facility, the timing of the draw
down, the continued availability of the Facility, progress in respect of the Company's Battery
Anode Facility strategy and the Molo project, and timing of commercial sales, commissioning
and achievement of nameplate capacity the rollout of Battery Anode Facilities including the
capabilities and the timing thereof. These statements are based on current expectations,
estimates and assumptions that involve a number of risks, including risks related to operations
and ramp up issues at the Molo project, risks related to the Company's Battery Anode Facility
strategy, as well as those risks identified in the Company's Annual Information Form and MD&A
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 date 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 because of new information, future events or
otherwise, except as may be required by applicable securities laws. Although the forward-
looking statements contained in this news release are based on what management believes are
reasonable assumptions, the Company cannot assure investors that actual results will be
consistent with them. These forward-looking statements are made as of the date of this news
release and are expressly qualified in their entirety by this cautionary statement. Subject to
applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after
the date of this news release.
SOURCE: NextSource Materials Inc.