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Nouveau Monde Graphite and Mason Graphite Announce Strategic Investment and Conditional Option and Joint Venture Agreement on Lac Guéret Project
MONTRÉAL, May 16, 2022 (GLOBE NEWSWIRE) -- Nouveau Monde Graphite Inc. (“NMG”) (NYSE: NMG) (TSX-V: NOU) and Mason Graphite Inc. (“Mason Graphite”) (TSX-V: LLG)
About this update from Nouveau Monde Graphite Inc
[{"type":"text","content":" MONTRÉAL, May 16, 2022 (GLOBE NEWSWIRE) -- Nouveau Monde Graphite Inc. (“NMG”) (NYSE: NMG) (TSX-V: NOU) and Mason Graphite Inc. (“Mason Graphite”) (TSX-V: LLG) (OTCQX: MGPHF) are pleased to announce that they have entered into an investment agreement (the ”Investment Agreement”) with a view towards the development and operation of Mason Graphite’s Lac Guéret property (the “Property”). Highlights include: On closing, NMG and Mason Graphite to enter into an option and joint venture agreement (the “Option and JV Agreement”) pursuant to which the parties will collaborate to advance the Property, based in Québec, Canada, with a view to form a joint venture (the “Joint Venture”); NMG to make a concurrent equity investment in Mason Graphite of an aggregate amount of up to C$5.0 million payable in two instalments (the “Equity Investment”, and together with the formation of the Joint Venture, the “Transaction”); Conditions for the formation of the Joint Venture include: (i) a minimum of C$10.0 million of expenditures from NMG on the Property, and (ii) the completion of an updated feasibility study on the Property based on an estimated production scale of a minimum of 250,000 tonnes per annum of graphite concentrate, to be ascertained based on customer demand as well as technical and environmental possibilities. The latest feasibility study published by Mason Graphite is based on 51,900 tonnes per annum; Assuming the exercise of the option and formation of the Joint Venture, NMG’s and Mason Graphite’s interest in the Joint Venture to be 51% and 49%, respectively, and NMG to be appointed as operator of the Joint Venture; Joint Venture to be funded by NMG and Mason Graphite on a pro rata basis; failure to fund work program commitments in the Joint Venture to result in a 1% dilution for each unfunded tranche of C$5.0 million; The Joint Venture will have full access to NMG’s Phase-1 natural graphite flake concentrator plant currently in operation in Saint-Michel-des-Saints, Québec (the “Demonstration Plant”) in order to accelerate the qualification and commercialization of its graphite, which has been proven instrumental as per NMG’s recent successful experience. To date, NMG has invested approximately C$30.0 million in the Demonstration Plant; The Joint Venture will benefit from NMG’s depth of personnel and commercialization capabilities; N...