NMG Acquires Mason Resources’ Lac Guéret Graphite Deposit/Uatnan Mining Project – One of the World’s Largest Graphite Projects in Development + NMG has agreed to acquire 100% of Mason Resources’ Lac Guéret graphite deposit to
NMG Acquires Mason Resources’ Lac Guéret Graphite Deposit/Uatnan
Mining Project – One of the World’s Largest Graphite Projects in
Development
+ NMG has agreed to acquire 100% of Mason Resources’ Lac Guéret graphite deposit to
secure a world-class asset which will underpin NMG’s planned Phase-3 expansion.
+ Preliminary economic assessment of the Uatnan Mining Project has demonstrated
attractive economics for a targeted production of approximately 500,000 tonnes of graphite
concentrate per annum over a 24-year life of mine, making it one of the World’s largest
graphite projects in development.
+ NMG is committed to developing the asset in close collaboration with the Innu First
Nation of Pessamit.
+ As for its current operations, NMG is committed to promoting best-practice
environmental assessment, ecoengineering, and stakeholder engagement.
+ Acquisition to position NMG as a leading graphite producer with 100% ownership in
North America’s two largest and most advanced projected natural graphite operations
leveraging its knowledgeable workforce of over 100 employees, operational Phase-1
facilities, and clean extraction and processing technologies.
+ Graphite demand for lithium-ion batteries is projected to grow to more than 10 million
tonnes per annum by the end of the decade, a 537% increase according to Benchmark
Mineral Intelligence with a significant portion within North America where a clear
unbalanced supply and demand situation is anticipated (December 2023).
+ With today’s transaction, NMG will have the ability to service customers for decades to
come with battery-grade graphite extracted and refined with the exclusive use of
hydropower, positioning the Company as an attractive, ESG-driven, and unique strategic
source.
MONTRÉAL--(BUSINESS WIRE)--January 22, 2024--Nouveau Monde Graphite Inc.
(“NMG“ or the “Company”) (NYSE: NMG, TSX.V: NOU) has entered into an asset purchase
agreement with Mason Resources Inc. (“Mason”) (TSX.V: LLG, OTCQX: MGPHF) for the
acquisition of the entire Lac Guéret Property, targeted for the development of the Uatnan Mining
Project. The transaction strengthens the Company’s long-term vision to be a dominant force in
the supply of carbon-neutral anode material for the Western market. NMG’s active commercial
discussions with tier-1 battery and electric vehicle (“EV”) manufacturers, including Panasonic
Energy Co., Ltd. (“Panasonic Energy”), a wholly owned subsidiary of Panasonic Holdings
Corporation (“Panasonic”) (TYO: 6752), confirm the strong projected demand by battery
materials analysts for graphite. This acquisition of another major asset in Québec, Canada,
reinforces NMG’s fully vertically integrated production model in North America with the highest
ESG standards of the industry, as validated by Benchmark Mineral Intelligence’s Sustainability
Index.
Arne H Frandsen, Chair of NMG, declared: “With its very large, high-quality natural graphite
deposit, the acquisition of the Lac Guéret deposit represents a strategically important move by
NMG. This addition of a world-class asset to NMG’s portfolio of resources, underpins the
Company’s growth prospects and commercial attractiveness. It also puts us in a unique position
in the global battery materials space. Our leadership and strong technical teams are looking
forward to the smart further development of the Lac Guéret asset, fully synchronized with
NMG’s current execution plans. We also warmly welcome Mason as a shareholder of NMG as
we build a pioneering – and possibly the largest! – integrated natural graphite production in the
Western World.”
Eric Desaulniers, Founder, President and CEO of NMG, said: “In light of commercial
discussions for our Phase-2 production out of the Matawinie Mine and Bécancour Battery
Material Plant, we are confident in the current and future demand for ethically sourced and
environmentally produced graphite-based anode material. NMG is set to match the sustained
market growth with a robust expansion plan now secured in the Uatnan Mining Project. Uitshi-
atussemitutau – NMG aspires to work together with the Innu First Nation of Pessamit – is our
vision for the development of this project. We are committed to a strong involvement of the First
Nation and active engagement with the region’s community and stakeholders to ensure a
responsible and sustainable development.”
Asset Purchase Agreement
NMG has agreed to acquire 100% of Mason’s Lac Guéret Property, which consists among other
things of 74 map-designated claims totalling 3,999.52 hectares. The consideration for the
acquisition of the Lac Guéret Property is payable in 6,208,210 common shares of NMG,
representing 9.25% of the pro forma issued and outstanding shares of NMG, to be issued to
Mason upon the closing of the transaction. A subsequent payment of $5,000,000 will be made to
Mason at the start of commercial production of the contemplated Uatnan Mining Project.
3,104,105 of the common shares of NMG to be issued in connection with the transaction will be
subject to a lock-up for a period of 12 months and the remaining 3,104,105 common shares of
NMG will be subject to a lock-up of 18 months. The shares of NMG will also be subject to a
four-month hold period pursuant to Canadian securities laws.
Closing of the transaction is expected to occur on or before January 31, 2024, and is subject to
certain standard conditions, including the receipt of the final approval from the TSX Venture
Exchange.
The asset purchase agreement supersedes and terminates the previously announced investment
agreement and option and joint venture agreement between NMG and Mason.
Planned Development of the Uatnan Mining Project
NMG published in 2023 a preliminary economic assessment (“PEA”), according to National
Instrument 43-101 Standards of Disclosure for Mineral Projects, for the Uatnan Mining Project.
The PEA, conducted by engineering firms BBA Inc. and GoldMinds Geoservices Inc., showed
strong economics for NMG’s updated operational parameters and production volumes targeting
the production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-
year life of mine (“LOM”).
Table 1: Operational Parameters of the Uatnan Mining Project
OPERATIONAL PARAMETERS
LOM 24 years
Nominal annual processing rate 3.4 M tonnes
Stripping ratio (LOM) 1.3:1
Average grade (LOM) 17.5% Cg
Average graphite recovery 85%
Average annual graphite concentrate production (LOM) 500,000 tonnes
Finished product purity 94% Cg
The PEA is preliminary in nature and includes Inferred Mineral Resources, considered too
speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be
realized. Mineral resources that are not mineral reserves have not demonstrated economic
viability. Additional trenching and/or drilling will be required to convert inferred mineral
resources to indicated or measured mineral resources. There is no certainty that the resources
development, production, and economic forecasts on which this PEA is based will be realized.
Table 2: Economic Highlights of the Uatnan Mining Project
ECONOMIC HIGHLIGHTS Uatnan Mining Project
Pre-tax NPV (8% discount rate) C$ 3,613 M
After-tax NPV (8 % discount rate) C$ 2,173 M
Pre-tax IRR 32.6%
After-tax IRR 25.9%
Pre-tax payback 2.8 years
After-tax payback 3.2 years
Initial CAPEX C$ 1,417 M
Sustaining CAPEX C$ 147 M
LOM OPEX C$ 3,236 M
Annual OPEX C$ 135 M
OPEX per tonne of graphite concentrate C$ 268/tonne
Concentrate selling price US$ 1,100/tonne
All costs are in Canadian dollars with the exception of the graphite sale price which is provided
in US dollars.
Table 3: Current Pit-Constrained Mineral Resource Estimate
IN-PIT CONSTRAINED MINERAL RESOURCES Tonnes (Mt) Grade (% Cg) Cg (Mt)
Measured 19.02 17.9 3.40
Indicated 46.62 16.9 7.89
Total Measured + Indicated 65.64 17.2 11.30
Inferred 17.82 17.2 3.07
Notes :
1. The Mineral Resources provided in this table were estimated by M. Rachidi P.Geo., and
C. Duplessis, Eng., (QPs) of GoldMinds Geoservices Inc., using current Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources
and Reserves, Definitions and Guidelines.
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, title, market or other relevant issues. The quantity and
grade of reported Inferred Mineral Resources are uncertain in nature and there has not
been sufficient work to define these Inferred Mineral Resources as indicated or Measured
Mineral Resources. There is no certainty that any part of a Mineral Resource will ever be
converted into Mineral Reserves.
3. The Mineral Resources presented here were estimated with a block size of 3mE x 3mN x
3mZ. The blocks were interpolated from equal-length composites (3 m) calculated from
the mineralized intervals.
4. The Mineral Resource estimate was completed using the inverse distance to the square
methodology utilizing three runs. For run 1, the number of composites was limited to ten
with a maximum of two composites from the same drillhole. For runs two and three the
number of composites was limited to ten with a maximum of one composite from the
same drillhole.
5. The Measured Mineral Resources classified using a minimum of four drillholes.
Indicated resources classified using a minimum of two drillholes. The Inferred Mineral
Resources were classified by a minimum of one drillholes.
6. Tonnage estimates are based on a fixed density of 2.9 t/m3.
7. Mineral Resources are stated at a cut-off grade of 5.75% C(g).
The Uatnan Mining Project lies within Nitassinan, the Innu of Pessamit’s ancestral territory, and
the Rivière-aux-Outardes municipality located in the Côte-Nord administrative region, Québec,
Canada, approximately 220 km as the crow flies, north northwest of the town of Baie-Comeau.
The Uatnan Mining Project is accessible by road 389 and then by following Class 1 forestry
roads.
Sustainability is center to NMG’s value proposition and will be reflected in the next phase of
work as the Company prioritizes the signature of a pre-development agreement with the Innu
First Nation of Pessamit. The Company plans to maintain a transparent dialogue with the First
Nation as it advances the project development to ensure the respect of their rights, the protection
of the environment, their culture and way of life, as well as the inclusion of their perspective, and
traditional knowledge.
As NMG’s team expands its relationships with the First Nation, the community and local
stakeholders, the Company will prepare for subsequent studies to advance the Uatnan Mining
Project. NMG has already mapped out a detailed workplan to enable the preparation of a
feasibility study, including on-site fauna and flora inventories, geological surveys, environmental
studies, impact assessment, stakeholder consultation, etc. True to its practices in developing the
Matawinie Mine, NMG is committed to a responsible, sustainable, and inclusive process to bring
the Uatnan Mining Project from opportunity to engineering, construction and commercial
production.
NMG will leverage its team of over 100 employees from all specialties – from metallurgy and
environment to mining, research and development, and sales – plus its operational Phase-1
concentration and processing facilities to support the development of the Uatnan Mining Project.
Market Underpinnings
NMG’s acquisition of the Lac Guéret Property aims at securing the asset in view of the growing
demand for locally produced natural graphite and the Company’s planned Phase-3 expansion to
supply the Western market.
Pushed by growth in electric vehicles, energy storage systems and other clean technology
applications, graphite demand for lithium-ion batteries is projected to reach to over 10 million
tonnes per annum by 2030, a 537% increase according to Benchmark Mineral Intelligence’s
(December 2023) latest market assessment.
In late 2023, China and the U.S. have sharpened their respective trade instruments targeting
graphite materials. China now enforces restrictions on Chinese graphite materials exports. The
U.S. Government has indicated that battery material sourced from China and other foreign
entities of concern will not be eligible for EV tax credits under the Inflation Reduction Act.
These recent political developments reaffirm the importance of establishing of a local, resilient,
and ESG-compliant supply chain of graphite to support battery and EV production.
NMG is projected to become the largest natural graphite producer in North America, fully
integrated from ore to anode material, and with demonstrated sustainability performance.
Scientific and technical information presented in this press release was reviewed and approved
by Eric Desaulniers, MSc, P.Geo., a Qualified Person as defined under NI 43-101.
About Nouveau Monde Graphite
Nouveau Monde Graphite is striving to become a key contributor to the sustainable energy
revolution. The Company is working towards developing a fully integrated source of carbon-
neutral battery anode material in Québec, Canada, for the growing lithium-ion and fuel cell
markets. With enviable ESG standards, NMG aspires to become a strategic supplier to the
world’s leading battery and automobile manufacturers, providing high-performing and reliable
advanced materials while promoting sustainability and supply chain traceability.
www.NMG.com
About Mason Resources
Mason Resources Inc. is a Canadian corporation focused on seeking investment opportunities.
Mason is the largest shareholder of Black Swan Graphene Inc. (“Black Swan”) (TSX.V: SWAN)
(OTCQB: BSWGF) focusing on the large-scale production of patented high-performance and
low-cost graphene products aimed at several industrial sectors, including concrete and polymers,
which are expected to require large volumes of graphene and, in turn, large volumes of graphite.
Black Swan aims at leveraging Québec’s emerging graphite industry to establish an integrated
supply chain. In 2023, Black Swan, Nationwide Engineering Research & Development Ltd., and
Arup Group Ltd. announced strategic partnerships and, in 2024, Black Swan announced a
commercial agreement with Hubron International Ltd. Black Swan’s graphene processing
technology was developed over the span of a decade by Thomas Swan & Co. Ltd., a United
Kingdom-based global chemicals manufacturer, with a century-long track record. For more
information: www.masonresourcesinc.com and www.blackswangraphene.com.
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Cautionary Note
All statements, other than statements of historical fact, contained in this press release including,
but not limited to those describing the closing of the transaction, the results of the PEA, trends in
legislation, consumer preferences, and industry standards, NMG’s performance with respect to
the initiatives described in this press release, the nature of relationships with stakeholders such
as the local community including the Innu First Nation of Pessamit, future demand for batteries
and graphite, the intended production of carbon-neutral anode material, Mineral Resource
estimates (including assumptions and estimates used in preparing the Mineral Resource
estimates), the general business and operational outlook of the Company, the Company’s future
growth and business prospects, the Company’s ESG commitments, initiatives and goals, the
Company’s goal to become the largest natural graphite producer in North America and those
statements which are discussed under the “About Nouveau Monde” paragraph and elsewhere in
the press release which essentially describe the Company’s outlook and objectives, constitute
“forward-looking information” or “forward-looking statements” (collectively, “forward-looking
statements”) within the meaning of Canadian and United States 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 Company 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. Moreover, these forward-looking
statements were based upon various underlying factors and assumptions, including the current
technological trends, the business relationship between the Company and its stakeholders, the
ability to operate in a safe and effective manner, the timely delivery and installation at estimated
prices of the equipment supporting the production, assumed sale prices for graphite concentrate,
the accuracy of any Mineral Resource estimates, future currency exchange rates and interest
rates, political and regulatory stability, prices of commodity and production costs, the receipt of
governmental, regulatory and third party approvals, licenses and permits on favorable terms,
sustained labor stability, stability in financial and capital markets, availability of equipment and
critical supplies, spare parts and consumables, the various tax assumptions, CAPEX and OPEX
estimates, all economic and operational projections relating to the project, local infrastructures,
the Company’s business prospects and opportunities and estimates of the operational
performance of the equipment, and are not guarantees of future performance.
Forward-looking statements are subject to known or unknown risks and uncertainties that may
cause actual results to differ materially from those anticipated or implied in the forward-looking
statements. Risk factors that could cause actual results or events to differ materially from current
expectations include, among others, those risks, delays in the scheduled delivery times of the
equipment, the ability of the Company to successfully implement its strategic initiatives and
whether such strategic initiatives will yield the expected benefits, the availability of financing or
financing on favorable terms for the Company, the dependence on commodity prices, the impact
of inflation on costs, the risks of obtaining the necessary permits, the operating performance of
the Company’s assets and businesses, competitive factors in the graphite mining and production
industry, changes in laws and regulations affecting the Company’s businesses, including the
changes in China’s policy regarding restrictions on Chinese graphite materials exportations,
political and social acceptability risk, environmental regulation risk, currency and exchange
rate risk, technological developments, the impacts of the global COVID-19 pandemic and the
governments’ responses thereto, and general economic conditions, as well as earnings, capital
expenditure, cash flow and capital structure risks and general business risks. A further
description of risks and uncertainties can be found in NMG’s Annual Information Form dated
March 23, 2023, including in the section thereof captioned “Risk Factors”, which is available
on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Unpredictable or unknown
factors not discussed in this Cautionary Note could also have material adverse effects on
forward-looking statements.
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 Company
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 the extent required by applicable law.
The market and industry data contained in this press release is based upon information from
independent industry publications, market research, analyst reports and surveys and other
publicly available sources. Although the Company believes these sources to be generally
reliable, market and industry data is subject to interpretation and cannot be verified with
complete certainty due to limits on the availability and reliability of raw data, the voluntary
nature of the data-gathering process and other limitations and uncertainties inherent in any
survey. The Company has not independently verified any of the data from third-party sources
referred to in this press release and accordingly, the accuracy and completeness of such data is
not guaranteed.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Further information regarding the Company is available in the SEDAR+ database
(www.sedarplus.ca), and for United States readers on EDGAR (www.sec.gov), and on the
Company’s website at: www.NMG.com
Contacts
MEDIA
Julie Paquet
VP Communications & ESG Strategy
+1-450-757-8905 #140
INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993