NextSource Materials Initiates Commissioning of Molo Graphite Mine and Appoints ESG Expert to Senior Management Team
NextSource Materials Initiates Commissioning of Molo Graphite Mine
and Appoints ESG Expert to Senior Management Team
NEWS RELEASE – TORONTO, March 23, 2023
NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) (“NextSource” or the “Company”) is pleased
to announce that commissioning of the Company’s Molo Graphite Mine in Madagascar has been
initiated and the installation of the solar and battery facility for the hybrid power plant is in progress.
The hybrid power plant consists of a thermal generation facility, which is already in operation , and a
solar and battery facility , consisting of a 2.6MW solar PV facility and a 1MWh battery energy storage
system. The thermal facility currently supplies all of the plant’s power requirement, and once completed,
the solar and battery facility will provide up to 33% of the mine’s total electricity needs using renewable
energy.
President and CEO, Craig Scherba, commented:
“Commissioning of the Molo Graphite Mine is a testament to the hard work and perseverance of our
employees and contractors who have brought this project from design through to implementation in the
midst of a global pandemic and shifting geopolitical landscape. That hard work has placed the Company
in an enviable position as it transitions into a global graphite producer at a time when graphite
consumption is increasing dramatically due to the explosive growth in demand for lithium-ion batteries.
NextSource is taking advantage of this tremendous market opportunity by creating a substantive niche
for itself within the global lithium-ion battery supply chain through the commissioning of its first graphite
mine and planned construction of its first Battery Anode Facility.”
Image: Molo Mine Processing Plant (left) and Thermal Facility (right)
On February 28 , 2023, t he Company announced its global Battery Anode Facility (BAF) expansion
strategy and the results of a technical study for its first BAF (BAF1) located in Mauritius. Mauritius was
selected due to its close proximity to the Company’s Molo Graphite Mine in Madagascar and its position
on strategic shipping routes to key markets. Front-end engineering and design and environmental and
social impact assessment ( ESIA) permitting is now in progress , and the Company is in active
discussions w ith strategic offtake partners and debt and equity financiers who have expressed an
interest in funding the BAF1 construction.
Subject to obtaining the necessary funding and completion of the ESIA process, the Company is
targeting production from BAF1 in Q2 2024.
The global expansion strategy involves the staged construction of BAFs in key global jurisdictions to
satisfy OEM demand in Asia, North America, Europe and the UK. Each BAF will be capable of producing
commercial volumes of coated, spherical and purified graphite (CSPG) for lithium-ion batteries used in
electric vehicle (EV) applications.
The BAF design is based on a pr oprietary and well -established processing technology currently
supplying CSPG to major EV automotive companies.
Addition of ESG Expert to Senior Management Team
The Company is pleased to announce the addition of Dr. Markus Reichardt as Vice President of
Sustainability.
Dr. Reichardt brings extensive environmental and social governance (ESG) expertise to NextSource,
with over 25 years of practical, advisory and strategic experience integrating ESG into all stages of
projects and investment cycle s across the natural resource, agricultural and renewables sectors . He
brings extensive experience working with precious, industrial and critical battery minerals, including
graphite and vanadium. Dr. Reichardt was formerly the corporate environmental manager of AngloGold
Ltd. and holds a PhD in restoration ecology.
Dr. Reichardt will be responsible for the Company’s group safety, health, environment, social, climate
change and quality performance policies and initiatives.
President and CEO, Craig Scherba, commented:
“Our ability to attract highly specialized individuals such as Dr. Markus Reichardt is a reflection of
our growth potential and commitment to integrating the highest industry standards. Dr. Markus Reichardt
will be integral to managing all our sustainability needs and I am delighted to welcome him to the
burgeoning NextSource management team.”
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
projects globally, and the only one with SuperFlake® graphite. Phase 1 of the Molo mine is in the
commissioning phase.
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 visit our website at www.nextsourcematerials.com or
contact us at +1.416.364.4911 or email Brent Nykoliation, Executive Vice President at
[email protected] or Craig Scherba, President & CEO
Safe Harbour: 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. R eaders 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”, “estimat e”, “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 , timing of on -site construction including the processing plant and
installation thereof, delivery and installation of the auxiliary buildings and structures, delivery and construction of the Solar Hybrid
Battery System, shipping of all plant infrastructure to site, all re-assembly and commissioning of the Molo Project, timing of
construction and completion of the Mauritius BAF and proposed timing of future locations of additional BAFs, timing and
completion of front-end engineering and design and ESIA permitting, the economic results of the BAF Technical Study including
capital costs estimates, operating costs estimates, payback, NPV, IRR, production, sales pricing and working capital estimate s,
the construction and potential expansion of the BAFs, expansion plans, as well as the Company’s intent on becoming a fully
integrated global supplier of critical battery and technology materials. These statements 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 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.