NMG Announces US$50-Million Equity Investment from Canada Growth Fund and the Government of Québec to Support its Phase 2 Ore-to-Battery- Material Graphite Operations
NMG Announces US$50-Million Equity Investment from Canada Growth
Fund and the Government of Québec to Support its Phase 2 Ore-to-Battery-
Material Graphite Operations
US$50-million subscription into NMG marking the first direct investment from
Canada Growth Fund and the renewed support from the Government of Québec via
its agent Investissement Québec
Investment to support the advancement of NMG’s Phase-2 Matawinie Mine and
Bécancour Battery Material Plant through detailed engineering and orders of long-
lead items
NMG’s integrated Phase-2 production of active anode material is destined to the
North American battery and EV markets
NMG’s business model and recognized ESG profile align with the critical mineral
strategy and battery value chain actively promoted by both levels of governments
MONTRÉAL--(BUSINESS WIRE)--December 17, 2024--NOT FOR DISTRIBUTION TO U.S.
NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Nouveau Monde Graphite Inc. (“NMG” or the “Company”) (NYSE: NMG, TSX.V: NOU)
announces an equity investment by Canada Growth Fund Inc. (“CGF”) and the Government of
Québec, via its agent Investissement Québec (“IQ”), in NMG for an aggregate amount of US$50
million to continue advancing its development toward commercial operations, subject to
regulatory approvals. As the Company prepares for a final investment decision (“FID”)
regarding its Phase-2 Matawinie Mine and Bécancour Battery Material Plant, the investment is
namely set to enable progress on detailed engineering, orders of key long-lead items and support
to critical-path activities.
Eric Desaulniers, Founder, President, and CEO of NMG, stated: “As a project developer, NMG
requires credible financial partners to share risks and unlock value in this strategic and
geopolitically important sector. Rounding up 2024 marked by significant progress in our
business plan, we are setting our sights on the remaining milestones to reach FID. This
investment by the Canada Growth Fund and the Government of Québec will enable our team to
make tangible advancements and place strategic orders in preparation for our project execution.
We are committed to delivering high-performing and reliable active anode materials to the
North American battery and electric vehicle (“EV”) markets, contributing to a local, sustainable
and reliable supply chain.”
Patrick Charbonneau, President and CEO of Canada Growth Fund Investment Management Inc.
(“CGFIM”), said: “Investors and policymakers alike recognize the strategic importance of
securing a stable supply of critical minerals, which are indispensable for essential for high-tech
industries, from defense to renewable energy and batteries. CGF is pleased to invest in NMG
and looks forward to supporting the Company in its journey to create the largest fully integrated
natural graphite production facility in North America.”
The reiterated support of IQ, an agent of the Government of Québec, and the addition of CGF, a
C$15-billion independent and arm’s length public fund of the Canadian federal government, to
NMG’s large shareholders strengthen the Company’s backing of key institutional investors and
provide a favorable roadmap to project financing upon a positive FID. CGF has a mandate to
capitalize on Canada’s abundance of natural resources and strengthen critical supply chains to
support the country’s long-term prosperity. CGFIM, a wholly owned subsidiary of PSP
Investments, acts as the independent and exclusive investment manager of CGF.
Investment into NMG
Each of CGF and IQ has agreed to subscribe for common shares in the capital of NMG (the
“Common Shares”), subject to certain conditions, for aggregate gross proceeds of US$50 million
(the “Offering”). Pursuant to the Offering, the Company will issue 39,682,538 Common Shares
at a price of US$1.26 per Common Share.
For each Common Share so subscribed, the Company will issue one share purchase warrant (the
“Warrants”) to each of CGF and IQ. The Warrant will entitle the holder thereof to acquire one
Common Share, from FID to the date that is five years from the closing of the Offering, at a
price per Common Share of US$2.38 – the same strike price than the warrants previously issued
to General Motors Holdings LLC, a wholly owned subsidiary of General Motors Co.
(collectively, “GM”) (NYSE: GM), Panasonic Energy Co., Ltd. (“Panasonic Energy”), a wholly
owned subsidiary of Panasonic Holdings Corporation (“Panasonic”) (TYO: 6752), and Mitsui &
Co., Ltd. (“Mitsui”) (TYO: 8031) in February 2024. The exercise of the Warrants is subject to
certain ownership limitations.
In connection with the investment, NMG will also enter into an investor rights agreement
(collectively, the “Investor Rights Agreements”) and a registration rights agreement with each of
CGF and IQ at the closing of their investment. Pursuant to the Investor Rights Agreements, each
of CGF and IQ will be restricted from selling its respective securities until August 28, 2025. The
Investor Rights Agreements also provide each of CGF and IQ with certain rights relating to its
investment in NMG, including namely certain board nomination and anti-dilution rights.
The Common Shares and the Warrants will be subject to a four-month hold period under
Canadian securities laws. CGF’s and IQ’s investments are expected to close concurrently on or
about December 19, 2024. Closing of the investments is subject to certain standard conditions
and regulatory approvals, including the approval of the TSX Venture Exchange (the “TSXV”)
and the authorization of the New York Stock Exchange.
Continued Progress Toward FID
The Company is actively progressing toward the finalization of an updated feasibility study for
its integrated Phase-2 operations to optimize production parameters, engineering, and cost
projections; the updated results are expected early in Q1-2025. Proceeds from the contemplated
investment are destined to advance detailed and equipment-specific engineering with
procurement of some long-lead items, support Phase-2 critical-path activities as well as to cover
general and administrative expenses, working capital, and financing costs.
NMG continues the preparation to FID via the signature of an Impact and Benefit Agreement
with the Atikamekw First Nation of Manawan for the Matawinie Mine, commercial engagement
with anchor and potential customers as well as project financing planning activities with
potential lenders, anchor customers and institutional equity investors.
About Nouveau Monde Graphite
Nouveau Monde Graphite is an integrated company developing responsible mining and
advanced manufacturing operations to supply the global economy with carbon-neutral active
anode material to power EV and renewable energy storage systems. The Company is developing
a fully integrated ore-to-battery-material source of graphite-based active anode material in
Québec, Canada. With enviable ESG standards and structuring partnerships with anchor
customers, NMG is set to become a strategic supplier to the world’s leading lithium-ion battery
and EV manufacturers, providing high-performing and reliable advanced materials while
promoting sustainability and supply chain traceability. www.NMG.com
About Canada Growth Fund
CGF is a $15 billion public fund, at arm's length from the government, that will help attract
private capital to build Canada's green economy. It will do this by using risk-absorbing
investment instruments to encourage private equity in low-carbon projects, technologies,
companies and supply chains. CGF will make strategic investments to help Canada achieve
national economic and climate policy objectives. For more information on CGF's mandate,
strategic objectives, investment criteria, scope of investment activities and range of instruments,
please visit www.cgf-fcc.ca/en/.
About Investissement Québec
Investissement Québec’s mission is to play an active role in Quebec’s economic development by
stimulating business innovation, entrepreneurship, and business acquisitions, as well as growth in
investment and exports. Operating in all the province’s administrative regions, the Corporation
supports the creation and growth of businesses of all sizes with investments and customized
financial solutions. It also assists businesses by providing consulting services and other support
measures, including technological assistance available from Investissement Québec Innovation.
In addition, through Investissement Québec International, the Corporation prospects for talent
and foreign investment, and assists Quebec businesses with export activities.
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Cautionary Note
This press release contains “forward-looking information” and “forward-looking statements”
within the meaning of applicable securities legislation (collectively, “forward-looking
statements”), including, but not limited to, statements relating to future events or future financial
or operating performance of the Company and reflect management’s expectations and
assumptions regarding the Company’s growth, results, performance and business prospects and
opportunities. Such forward-looking statements reflect management’s current beliefs and are
based on information currently available to it. These forward-looking statements include, but are
not limited to, statements describing the Company’s ability to continue its development toward
commercial operations, the Company’s ability to obtain all necessary regulatory approvals,
including the final approval of the TSXV for the Offering, the intended use of proceeds of the
Offering, the Company’s ability to make tangible advancements and place strategic orders in
preparation for the project execution, the positive outcome of FID, the receipt of the updated
results of the feasibility study in Q1-2025, the Company’s ability to supply the global economy
with carbon-neutral active anode material to power EV and renewable energy storage systems,
to develop a fully integrated ore-to-battery-material source of graphite-based active anode
material in the Province of Québec, to create the largest fully integrated natural graphite
production facility in North America, to become a strategic supplier to the world’s leading
lithium-ion battery and EV manufacturers and to provide high-performing and reliable advanced
materials while contributing to a local, sustainable and reliable supply chain, the expected
results of the initiatives described in this press release, those statements which are discussed
under the “About Nouveau Monde” paragraph, those statements which are discussed under the
“About Canada Growth Fund” paragraph, and those statements which are discussed under the
“About Investissement Québec” paragraph, and elsewhere in the press release which essentially
describe the Company’s outlook and objectives.
Forward-looking statements are based on reasonable assumptions that have been made by the
Company as at the date of such statements and are subject to known and unknown risks,
uncertainties, and other factors that may cause the actual results, level of activity, performance,
or achievements of the Company to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to, general business and economic
conditions, the actual results of current development, engineering and planning activities, access
to capital and future prices of graphite, mining development activities inherent risks, the
speculative nature of mining development, changes in mineral production performance, the
uncertainty of processing the Company’s technology on a commercial basis, development and
production timetables, competition and market risks; pricing pressures, other risks of the mining
industry, and additional engineering and other analysis is required to fully assess their impact,
the fact that certain of the initiatives described in this press release, are still in the early stages
and may not materialize, business continuity and crisis management, political instability and
international conflicts. A more detailed description of risks and uncertainties can be found in the
section entitled “Risk Factors” in the Company’s most recent annual information form and in
the Company’s most recent MD&A, which is available on SEDAR+ at www.sedarplus.ca and on
EDGAR at www.sec.gov. Other unpredictable or unknown factors not discussed in this
cautionary note could also have a material adverse effect on the forward-looking statements.
There can be no assurance that such forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements.
The Company does not undertake to update or revise any forward-looking statements that are
included in this press release, whether as a result of new information, future events, or
otherwise, except in accordance with applicable securities laws.
Market and industry data presented throughout this press release was obtained from third-party
sources and industry reports, publications, websites, and other publicly available information, as
well as industry and other data prepared by the Company or on behalf of the Company based on
its knowledge of the markets in which the Company operates, including but not limited to
information provided by suppliers, partners, customers and other industry participants. The
Company believes that the market and economic data presented throughout this press release is
accurate as of the date of publication and, with respect to data prepared by the Company or on
behalf of the Company, that estimates and assumptions are currently appropriate and
reasonable, but there can be no assurance as to the accuracy or completeness thereof. The
accuracy and completeness of the market and economic data presented throughout this press
release are not guaranteed and the Company does not make any representation as to the
accuracy of such data and the Company does not undertake to update or revise such data. Actual
outcomes may vary materially from those forecasted in such reports or publications, and the
prospect for material variation can be expected to increase as the length of the forecast period
increases. Although the Company believes it to be reliable as of the date of publication, the
Company has not independently verified any of the data from third-party sources referred to in
this press release, analyzed or verified the underlying studies or surveys relied upon or referred
to by such sources, or ascertained the underlying market, economic and other assumptions relied
upon by such sources. Market and economic data are subject to variations and cannot be
verified due to limits on the availability and reliability of data inputs, the voluntary nature of the
data-gathering process and other limitations and uncertainties inherent in any statistical survey.
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 press release.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities offered have not been and will not be registered
under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any
state securities laws and may not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state securities laws or an
exemption or exclusion from such registration is available. “United States” and “U.S. Person”
are as defined in Regulation S under the U.S. Securities Act.
Additional information about the Company is available through our regular filing of press
releases, financial statements and our most recent Annual Information Form on SEDAR+
(www.sedarplus.ca) and EDGAR (www.sec.gov). These documents and other information about
NMG can also be found on our 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