Nouveau Monde Graphite (NMG) Update - June 8

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Nouveau Monde Graphite (NMG) Update - June 8

Post by dan_s »

Progress Report for Phase 1 and Phase 2 of Nouveau Monde’s Bécancour Battery Anode Material Plants

HIGHLIGHTS

Nouveau Monde is pleased to report continued progress on its Phase 1 purification plant at Olin Corporation’s facility in Bécancour, Québec, the development is on time and within budget
Commencement of the mechanical and electrical commissioning of the purification unit is scheduled for the end of June with the ramp-up scheduled during second half of 2021
Spherical purified graphite produced in the Company’s plant during H2-2021 will be coated at its supplier facility to accelerate its qualification process with battery makers
Construction of the Company’s Phase 1 coating line has commenced and is expected to be commissioned in Q1-2022 facilitating its vertically integrated 2,000 tpa supply of coated spherical purified graphite
Engineering firm BBA has been awarded the mandate to complete a definitive feasibility study for the 45,000 tpa Phase 2 Bécancour battery anode plant, building on the company’s FEL-1 Scoping study
Ground works have started at the Company’s 200,000 m2
plant site at Bécancour, on which the Phase 2 plant will be located, including geotechnical works for construction and environmental baseline studies

Arne H Frandsen
Chairman

“We are very pleased to be commencing the commissioning of our Phase 1 plant this month. With COVID-19 still being a limiting factor, I am proud of our team’s ability to deliver this important project ‘on budget and on time’! With other battery material providers also selecting Bécancour as their location for beneficiation of battery material, Bécancour is rapidly becoming one of North America’s most important battery hubs.”

NMG is now trading on the NYSE
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Nouveau Monde Graphite (NMG) Update - June 8

Post by dan_s »

In 2020, natural gas exports and natural gas for electricity reached record highs . U.S. Energy Information Administration .
In 2020, both natural gas consumption by the U.S. electric power sector and natural gas exports reached record highs, despite a 2% annual decline in domestic dry natural gas production. Dry natural gas production doesn’t include natural gas plant liquids (NGPL), such as ethane and propane. In 2020, NGPL production grew to a record-high 2.7 trillion cubic feet (Tcf), up 7% from 2019. < Yet we still had to drain propane inventories.
Dan Steffens
Energy Prospectus Group
Oldershaw
Posts: 6
Joined: Sat Nov 28, 2020 7:13 am

Re: Nouveau Monde Graphite (NMG) Update - June 8

Post by Oldershaw »

Hi Dan,

Since they listed on the US exchanges, their share price has dropped ~50% to 7.50.

I heard they did a reverse split, which I do not understand as I only trade in and out.

Is this company still a good buy?

Thanks.

Ben
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Nouveau Monde Graphite (NMG) Update - June 8

Post by dan_s »

This is a mining company with a very good story, but until they get the mine open and start generating revenues it is difficult for me to value the stock. The recent equity offer is what caused the pullback. The Pallinghurst Group's stake in the Company is encouraging. See https://www.pallinghurst.com/ Once the stock sale below is closed they should have enough funding to get the Matawinie mine project and LiB anode plant completed and up and running.
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MONTRÉAL, June 18, 2021 (GLOBE NEWSWIRE) -- Nouveau Monde Graphite Inc. (“Nouveau Monde” or the “Company”) (NYSE: NMG; TSXV: NOU) today announced the pricing of its previously announced underwritten public offering (the “Offering”) of 7,000,000 of its common shares (the “Common Shares”) at a price per share of US$7.50 (the “Offering Price”) for aggregate gross proceeds of US$52,500,000. Nouveau Monde has granted the underwriters a 30-day option to purchase up to an additional 1,050,000 Common Shares at the Offering Price. The Offering is expected to close on Wednesday, June 23, 2021, subject to customary closing conditions.

Evercore ISI and BMO Capital Markets are acting as joint book-running managers for the Offering. B. Riley Securities and Stifel GMP are also acting as joint book-running managers. Roth Capital Partners is acting as co-manager for the Offering.

One of the Company’s current shareholders, Pallinghurst Graphite International Limited, has indicated that it and one of its investors collectively intend to purchase 706,666 Common Shares in the Offering for aggregate gross proceeds to the Company of approximately US$5,300,000. Further, shortly following the closing of the Offering and after preliminary discussions with one of its other current shareholders, the Company plans to complete a non-brokered private placement of Common Shares for aggregate gross proceeds of up to US$13,125,000, at a price per Common Share which will not be less than the Offering Price (the “Private Placement”). Moreover, the shareholder participating in the Private Placement will have the option to purchase such number of additional Common Shares as is equal to 15% of the initial number of Common Shares under the Private Placement in the event of the full exercise of the Over-Allotment Option under the Offering (or such lesser number of Common Shares as is proportionate to any lesser exercise of the Over-Allotment Option). The Private Placement will be made pursuant to an exemption from Canadian prospectus requirements and the Common Shares issued thereto will be subject to restrictions on resale for a period of four months and one day from the closing of the Private Placement under applicable Canadian securities legislation. Closing of the Private Placement and of the Offering are not conditional upon each other.

The Company expects the net proceeds of the Offering and the Private Placement to be used towards the development of the Matawinie mine project and LiB anode plant project and for general working capital and corporate expense needs.

In connection with the Offering, Nouveau Monde has filed a preliminary prospectus supplement and will file a final prospectus supplement (together, the “Prospectus Supplement”) to the Company’s existing base shelf prospectus filed in Canada (the “Base Shelf Prospectus”) and the Company's United States registration statement on Form F-10 (the “Registration Statement”) filed with the U.S. Securities and Exchange Commission (the “SEC”) under the U.S.-Canada multijurisdictional disclosure system (MJDS). The Offering is being made in the United States and in each of the provinces of Canada. The Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement contain important information about the Company and the Offering. Prospective investors should read the Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement and the documents incorporated by reference therein before making an investment decision. The Prospectus Supplement when filed in Canada (together with the related Base Shelf Prospectus) will be available on SEDAR at www.sedar.com. The Prospectus Supplement when filed in the United States (together with the Registration Statement) will be available on the SEC’s website at www.sec.gov. Alternatively, the Prospectus Supplement filed in Canada (together with the related Base Shelf Prospectus) and the Prospectus Supplement filed in the United States (together with the Registration Statement) may be obtained, when available, upon request from any of the following sources: Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200 or by e-mail at ecm.prospectus@evercore.com; or in Canada by contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 by telephone at 905-791-3151 Ext 4312 or by email at torbramwarehouse@datagroup.ca, and in the United States by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036, or by telephone at (800) 414-3627 or by email at bmoprospectus@bmo.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction. The securities being offered and the contents of this press release have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon by the accuracy or adequacy of the Prospectus Supplement, the Base Shelf Prospectus or the Registration Statement.

About Nouveau Monde

Nouveau Monde is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully-integrated source of green battery anode material in Québec, Canada. Targeting commercial operations by 2023, the Company is developing advanced carbon-neutral graphite-based material solutions for the growing lithium-ion and fuel cell markets. With low-cost operations and enviable ESG standards, Nouveau Monde 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.
Dan Steffens
Energy Prospectus Group
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