Nouveau Monde Graphite (NMG) Update - Jan 22

[dan_s]

NMG remains on my Watch List.

Nouveau Monde Graphite has entered into an asset purchase agreement with Mason Resources 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., a wholly owned subsidiary of Panasonic Holdings Corporation, 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.

HIGHLIGHTS
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.