Hydro-Québec Grants an Exploitation License and Partners with Nouveau Monde Graphite to Develop Materials Used IN Lithium-Ion Batteries
HYDRO-QUÉBEC GRANTS AN EXPLOITATION LICENSE AND PARTNERS WITH NOUVEAU
MONDE GRAPHITE TO DEVELOP MATERIALS USED IN LITHIUM-ION BATTERIES
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN THE UNITED
STATES.
Symbol: NOU (TSX Venture), OTCQX: NMGRF, Frankfurt: NM9
May 17th 2018 FOR IMMEDIATE RELEASE
Montreal, QUEBEC – Hydro-Québec (HQ) and Nouveau Monde Graphite ( NMG) (TSX-V:
NOU) are pleased to announce the signing of a license and a research and development
agreements respecting the processing of graphite for use in lithium -ion batteries. This
collaboration will hopefully enable NMG to commercialize battery material technologies
developed by HQ over the past 30 years, helping to position Québec strategically in the
lithium-ion battery market.
“Graphite-based anode material for lithium-ion batteries is a globally accepted mature
technology whose large-scale commercialization could potentially change transportation
and energy storage methods,” said Karim Zaghib, General Director – Center of Excellence
in Transportation Electrification and Energy Storage, at Hydro -Québec. « We are looking
forward to work with NMG, right here in our province of Quebec, where easy access to
energy and natural resources gives a competitive edge to , and consolidates, the North-
American lithium-ion battery market supply chain.”
“We’re honored to be working with one of the most pres tigious battery material labs in
the world and to act as a vector bringing these innovative technologies developed here in
Québec to market,” said Éric Desaulniers, NMG’s President and CEO. “We already expect
to create close to 180 regional jobs with our g raphite mine and plant for the secondary
processing of natural graphite. This announcement complements our initial project and
demonstrates our intention to maximize the spinoffs from Québec graphite, and will
probably lead to the creation of new high-quality jobs in this high-tech sector.”
The agreement provides for HQ to assist NMG in setting up a small -scale process in its
demonstration plant in Saint -Michel-des-Saints, starting by the end of this year. The
success of this small -scale process will lead NMG to eventually build an anode material
fabrication plant with a capacity of up to 100,000 ton nes per year. This anode material
fabrication plant is in addition to and complements NMG’s mining project. NMG will
support in part the needs for graphite of the anode material fabrication plant. To support
these projected 100 000 tonnes per year, NMG intends to enter into supply agreements
with other graphite suppliers . Some high-level samples testing are already being
conducted to determine the compatibility of graphite coming from another supplier ,
further sampling testing will be done.
License and R&D agreements
The deal between HQ and NMG includes a licens e and a R esearch and development
agreement respecting the processing of graphite for use in lithium -ion batteries. The
agreements will enable NMG to use HQ’s patented technologies for the micronization,
spheronization, purification and natural graphite coating to serve the lithium-ion battery
market.
The partnership’s objectives are as follows:
• HQ and NMG will develop a functional and cost -effective process to transform
flake graphite into high -quality graphite products suitable for lithium-ion
batteries.
• HQ will assist NMG in its material qualification processes with leading lithium-ion
battery manufacturers.
• HQ will assist NMG in the small -scale industrialization of its process in its
demonstration plant in Saint-Michel-des-Saints.
• Any new intellectual propert y developed from this partnership wi ll be jointly
owned by HQ and NMG on a 50/50 basis.
Information related to NMG’s financing
In connection with these agreements, NMG is also pleased to announce that it has closed
a non-brokered private placement of 6,666,667 units in the capital of the Corporation, at
a price of $0.30 per unit (the “Unit”) for an aggregate gross proceeds of $ 2,000,000 (the
“Offering”). Each Unit consists of one common share and one half of one common share
purchase warrant. Each full warrant will entitle its holder to subscribe one common share
of NMG at a price of $0.40 for a period of 24 months following the closing of the Offering.
The securities issued pursuant to the Offering are subject to a restricted period of four
months and a day, from the date of issuance under applicable Canadian securities
legislation.
NMG expects to be able to file shortly all required documentation to satisfy the
conditional acceptance of the TSX Venture Exchange.
Some directors and two insiders have subscribed Units in the Offering, which constitutes
a “related party transaction” within the meaning of Regulation 61 -101 respecting
Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”) and
TSXV Policy 5.9 – Protection of Minority Security Holders in Special Transactions. However,
the directors of NMG who voted in favour of the Offering have determined that the
exemptions from formal valuation and minority approval requirements provided for
respectively under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on
as neither the fair market value of the Units issued to this insider nor the fair market value
of the consideration paid exceed 25% of NMG’s market capitalization. None of the NMG’s
directors has expressed any contrary views or disagreements with respect to the
foregoing. The persons who have subscribed in the Offering are: Guy Bourassa, a director,
70,000 Units, Pierre Renaud, a director, 33,340 Units, Nathalie Jodoin, a director, 40,000
Units, Jean Philippe Aubé, a di rector, 40,000 Units, Patrice Boulanger, a director, 3 5,000
Units, Charles Armand Turpin, an insider, 833,333 Units and Virginie Fortin, an insider,
160,000 Units.
About Hydro-Québec
Hydro-Québec generates, transmits and distributes electricity. It is Canada’s largest
electricity producer and one of the world’s largest hydroelectric power producers. Its sole
shareholder is the Québec government. It uses mainly renewable generating opti ons, in
particular large hydropower. Its research institute, IREQ, conducts R&D in energy
efficiency, energy storage and various other energy -related fields.
www.hydroquebec.com/en
About the Center of Excellence in Transportation Electrification and Energy Storage
The mission of the Cente r of Excellence in Transportation Electrification and Energy
Storage is to conduct battery materials research for Hydro -Québec. With 70 employees,
including 27 researchers, its 2018 operating budget is $20 million, sourced entirely from
outside revenue, gen erated chiefly by the sale of licenses to use its technologies. The
center of excellence is headed by Karim Zaghib, an expert of international renown.
Dr. Zaghib was recently named one of the World’s Most Influential Scientific Minds for
the third year running. The center of excellence commercializes Hydro-Québec’s battery
technologies, protected by 800 patents. It will also create new research partnerships and
develop new technologies.
About Nouveau Monde Graphite
In 2015, Nouveau Monde Graphite discovered a major and high-quality graphite deposit
on its Matawinie property, located in Saint-Michel-des-Saints, 150 km north of Montreal,
Quebec. The discovery led to the announcement of a pre-feasibility study on October 25,
2017. The pre-feasibility study results reveal projected graphite concentrate pr oduction
levels of 52,000 tonnes per year over a 27-year period. In the summer of 2018, NMG will
be launching its first ton nes of concentrated graphite flake manufactured in
demonstration plant . NMG’s Demonstration plant as a production capacity of 2000
tonnes of concentrated flake graphite for a two-year period.
Moreover, in a vertical integration and sustainable development perspective, the
company is planning the establishment of a large -scale graphite secondary
transformation facility, catering the needs of the blooming lithium -ion battery market.
With over 60 of experience in the world of graphite, NMG ’s team develops its projects
with the utmost respect of neighbouring communities, while favouring a minimal
ecological footprint. NMG ’s project is privileged by direct access to the wor kforce and
infrastructure needed to operate, such as an abundant affordable and renewable source
of hydroelectricity.
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For more information:
Marie-Eve Chaume
Communication Chief Officer
Nouveau Monde Graphite
+1 (514) 951-5498
Jonathan Côté
Spokeperson
Hydro-Québec
+1 514 289-3227
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defined in the policies of the TSX Ve nture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
All statements, other than statements of historical fact, contained in this press release
including, but not limited to (i) the obtaining of the necessary authorizations and permits;
(ii) the schedule, outlook and forecast of the contract s with HQ ; and (iii) generally, the
“About Nouveau Monde Graphite” paragraphs which essentially describe the
Corporation’s outlook and objectives, constitute ”forward -looking information” or
”forward-looking statements” within the meaning of certain securities laws, and are
based on expectations, estimates and projections as of the time of this press release.
Forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Corporation as of the time of such
statements, are inherently subject to significant business, economic and competitive
uncertainties and contingencies. These estimates and assumptions may prove to be
incorrect.
Many of these uncertainties and contingencies can directly or indirectly affect, and could
cause, actual results to differ materially from those expressed or implied in any forward -
looking statements. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are provided for the purpose
of providing information about management’s expectations and plans relating to the
future. The Corporation disclaims any intention or obligation to update or revise any
forward-looking statements or to explain any material difference between subsequent
actual events and such forward -looking statements, except to th e extent required by
applicable law.
Further information regarding Nouveau Monde is available in the SEDAR database
(www.sedar.com) and on the Corporation’s website at: www.nouveaumonde.ca