Business
Nouveau Monde Graphite Provides Project Finance Update: Expressions of Interest Received and Appointment of Société Générale as the sole coordinating Mandated Lead Arranger
MONTRÉAL / Jun 14, 2022 / Business Wire / Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV: NOU) reports meaningful progre
About this update from Nouveau Monde Graphite Inc
[{"type":"text","content":"MONTRÉAL / Jun 14, 2022 / Business Wire / Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV: NOU) reports meaningful progress on its financing efforts for the development of its fully vertically integrated Phase-2 operations, combining the Bécancour Battery Material Plant and Matawinie Mine. Following the appointment of financial advisors to assist with the structuring and securing of project financing, the Company has engaged with Export Credit Agencies (“ECAs”), governments, strategic investors, and potential customers to frame a robust capital structure that leverages international debt, government funding and equity. NMG has received formal Expressions of Interest (“EOI”) to cover approximately up to 70% of the estimated total funding for an integrated project, subject to standard project finance conditions. NMG’s financing approach strives to further derisk its development by seeking to secure medium-term debt, complemented by strategic equity participation. Arne H Frandsen, Chair of NMG, said: “The strong expressions of interest received through our financing efforts thus far illustrates the technical, commercial, and sustainable attractiveness of NMG’s ore-to-battery-material business. As the Western World rushes to secure minerals, advanced materials, and manufacturing capacity to engage in the global clean energy economy, the team at NMG has made tremendous progress in advancing our fully integrated model through our proprietary ecotechnologies, Phase-1 production, engineering of our Phase 2 and active engagement with the marketplace. The contemplated structure of our financing and the participation of leading international lenders would strategically position the Company for future steps.” Senior Debt Facility As NMG’s technical team and engineering consultants finalize the selection of key equipment and service providers for Phase 2, discussions with ECAs have advanced considerably and have led to a significant level of interest by certain ECAs. The Company has received indicative expressions of interest for a senior debt facility from Euler Hermes Aktiengesellschaft, the German Export Credit Agency (“EH”) and Export Development of Canada (“EDC”) Canada’s export credit agency. The proposed medium-term project finance is expected to deliver a significantly lower cost of capital than...