+ GM commits to a US$150 million funding in two tranches, topic to sure closing situations, to help development and finally building of NMG’s Part-2 operations.
+ Announcement coincides with parallel offtake agreement with Panasonic Energy , which mixed with GM’s Provide Settlement, covers roughly 85% of NMG’s deliberate lively anode materials manufacturing at its Part-2 Bécancour Battery Materials Plant.
+ GM’s Tranche 1 Funding and Provide Settlement help NMG’s execution plan for its Part-2 Matawinie Mine and Bécancour Battery Materials Plan, marking a big milestone towards a subsequent tranche funding of as much as an extra US$275 million within the combination from anchor prospects, topic to sure situations.
+ Collaboration gives GM with a supply of carbon-neutral lively anode materials to help its EV manufacturing, including to GM’s progress in growing a extra sustainable and resilient North American-focused EV provide chain.
+ Graphite is a key battery uncooked materials, making up greater than 95% of the anode facet of lithium-ion batteries for EVs and clear power storage programs.
+ Shareholders, analysts, and media are invited to attend an Investor Briefing at present at 10:30 a.m. ET hosted by NMG’s Administration Crew by way of webcast .
Nouveau Monde Graphite Inc. (“NMG” or the “Firm”) ( NYSE: NMG , TSX.V: NOU ) and Common Motors Holdings LLC (“GM”), an entirely owned subsidiary of Common Motors Co. ( NYSE: GM ), have agreed to signal a provide settlement (the “Provide Settlement”) upon closing of the Tranche 1 Funding, through which NMG will present 18,000 tonnes every year (“tpa”) of its anticipated Part-2 lively anode materials output to GM upon reaching full manufacturing for an preliminary time period of six years. In complement to the Provide Settlement, NMG and GM entered right into a subscription settlement (the “Subscription Settlement”) through which GM commits an combination US$150 million fairness funding in NMG, topic to sure closing situations, to develop what’s projected to be the primary absolutely built-in pure graphite lively anode materials venture of its sort in North America; an area, carbon-neutral, dependable, sizeable, and ESG-driven supply of pure graphite for the electrical automobile (“EV”) and lithium-ion battery market.
This press launch options multimedia. View the total launch right here: https://www.businesswire.com/news/home/20240214552719/en/
GM’s all-electric Cadillac 2026 VISTIQ. (Picture: Enterprise Wire)
GM will make an preliminary US$25 million fairness funding in NMG (the “Tranche 1 Funding”) to help the development of NMG’s Part-2 operations – the Matawinie Mine and the Bécancour Battery Materials Plant – in keeping with GM’s battery producer’s specs. GM additionally commits to subscribe for an additional US$125 million of fairness upon the profitable completion of situations precedent and a optimistic remaining funding determination (“FID”) (the “Tranche 2 Funding” and along with the Tranche 1 Funding, the “Transaction”).
Arne H Frandsen, Chair of NMG, declared: “We welcome GM as a shareholder, invested in our strong North American industrial plan in addition to our ESG commitments to accountable manufacturing and partnered growth with First Nations and communities. On behalf of the Board of Administrators, I commend NMG’s crew for his or her excellent work in defining what is about to grow to be a thriving relationship offering certainty of provide for GM, a roadmap to worth creation for stakeholders, and a strong basis for progress for shareholders.”
Jeff Morrison, Vice President, International Buying and Provide Chain at GM, acknowledged: ” Our collaboration with NMG is a milestone for the trade, and in our ongoing growth of a extra sustainable and resilient battery provide chain. From our meeting crops and battery cell crops within the U.S., to our investments throughout the availability chain, we’re growing a North American EV ecosystem geared toward benefiting shoppers, increasing financial alternative, and making a aggressive benefit for GM.”
Eric Desaulniers, Founder, President, and CEO of NMG, reacted: “From neighbours in Bécancour to now enterprise companions, GM and NMG align on a imaginative and prescient for a striving and native built-in provide chain, from ore to EVs. North America is wealthy in assets, manufacturing capability, abilities, and innovation. We’re leveraging these substances to drive a zero-emission future. Right now marks a momentous milestone for NMG, highlighting the progress made in the direction of our Part 2 and the Firm’s sound marketing strategy of turning into North America’s largest absolutely built-in pure graphite lively anode materials producer to serve the booming Western battery and EV market.”
Greater than 95% of the anode facet of EV batteries is created from graphite, making it essentially the most demanded uncooked supplies of all battery metals (Benchmark Mineral Intelligence, January 2023). Pure graphite responsibly extracted at NMG’s Part-2 Matawinie Mine shall be transported to the Part-2 Bécancour Battery Materials Plant to be processed into lively anode materials earlier than being delivered to battery cell crops for final incorporation as batteries in GM’s EVs.
With a confirmed multiyear provide dedication from GM supplemented with the Tranche 1 Funding, NMG has now the means and technical parameters in hand to advance engineering of the Firm’s Part-2 Bécancour Battery Materials Plant. This plant is deliberate to be constructed throughout the similar industrial park as GM and POSCO Future M’s Cathode Lively Materials (“CAM”) processing facility, the CA$600-million Ultium CAM plant at the moment in building.
Right now’s announcement additionally helps NMG’s engagement with potential lenders, strategic traders, and governments with higher visibility on bankability for the venture financing linked to a optimistic FID determination for the Firm’s built-in Part-2 Matawinie Mine and Bécancour Battery Materials Plant. Lenders’ enter has been supplied all through discussions with GM to facilitate a profitable financing at FID.
Provide Settlement
The Provide Settlement gives for provide of a quantity of 18,000 tpa, as soon as NMG reaches full manufacturing, of lively anode materials by NMG to GM for an preliminary 6-year time period from the graduation of the Firm’s Part-2 manufacturing. The gross sales shall be primarily based on an agreed upon value formulation linked to future prevailing market costs in addition to a pricing mechanism to fulfill venture financing ratios and guarantee steady procurement for GM. The Provide Settlement is topic to situations precedent that are customary for a venture of this nature. The Provide Settlement comprises customary termination rights for an settlement of this nature.
Strategic Funding & Investor Rights Settlement
In reference to the Tranche 1 Funding, GM has agreed to subscribe for 12,500,000 frequent shares within the capital of NMG (the “Frequent Shares”) and 12,500,000 frequent share buy warrants (the “Warrants”) for combination proceeds of US$25 million. Such Warrants are typically exercisable in reference to the Tranche 2 Funding at FID in accordance with their phrases. Every Warrant will entitle the holder thereof to amass one Frequent Share (“Warrant Share”) at a value per Warrant Share equal to the decrease of (i) US$2.38 per Frequent Share, and (ii) the quantity in US {Dollars} per Frequent Share equal to the closing value of the Frequent Shares on the buying and selling day instantly following the date on which the Tranche 1 Funding is introduced. The train of the Warrants is topic to sure possession limitations.
NMG will use the online proceeds from the Tranche 1 Funding for the event of the Part-2 Matawinie Mine and Bécancour Battery Materials Plant.
NMG and GM can even enter into an investor rights settlement (the “Investor Rights Settlement”) which incorporates registration rights on the closing of the Tranche 1 Funding. Pursuant to the Investor Rights Settlement, the GM securities shall be topic to a “lock-up” for a interval of 18 months from the date of the Tranche 1 Funding. The Investor Rights Settlement additionally gives GM with sure rights referring to its funding in NMG, together with sure board nomination and anti-dilution rights. Copies of the Subscription Settlement, the Offtake Settlement, and the Investor Rights Settlement shall be obtainable on the Firm’s web page on SEDAR+ www.sedarplus.ca and on EDGAR at www.sec.gov , and the abstract of the such agreements contained herein is certified in its entirety by the reference to such paperwork.
NMG’s Lively Anode Materials
Because of lively technical engagement between the events, lively anode materials produced at NMG’s Part-1 amenities has been equipped to and examined by GM’s battery producer to verify alignment with its distinct specs and high quality requirements.
NMG’s absolutely built-in manufacturing in Québec, Canada, from ore to lively anode materials, gives assure of an area, traceable, and dependable supply for GM’s provide chain. The Provide Settlement integrates sourcing necessities below the Inflation Discount Act’s client EV tax credit score provisions, a situation aligned with NMG’s localization and worth chain design.
NMG’s lively anode materials has demonstrated minimal environmental footprint in an ISO-compliant life cycle assessment due to the Firm’s deliberate all-electric operations powered by renewable power mixed with clear processing applied sciences. NMG has also been identified as “Industry Leading” in Benchmark Mineral Intelligence’s natural graphite sustainability index , the one producer to have been certified within the class following a complete examination of ESG practices, transparency, and engagement.
Decarbonization efforts, commerce rules, and up to date geopolitical developments reaffirm the significance of building of an area, resilient, and ESG-driven provide chain of graphite to help battery and EV manufacturing. NMG is focused to grow to be the biggest pure graphite producer in North America, absolutely built-in from ore to lively anode materials, and with demonstrated sustainability efficiency.
Complementary Data
NMG has additionally introduced having entered a multiyear binding offtake agreement with Panasonic Energy Co., Ltd. and a private placement with Panasonic Holdings Corporation . Other strategic investors have also concurrently committed to an investment of US$37.5 million in NMG via a private placement . Extra data concerning such transactions is on the market on the Company’s website , SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov .
Shareholders, analysts, and members of the media are invited to attend a webcast Investor Briefing this morning, Thursday, February 15, 2024, at 10:30 a.m. ET. Hosted by President and CEO Eric Desaulniers with the participation of NMG’s Administration Crew, the briefing will entail a technical presentation adopted by a question-and-answer session. Registration must be accomplished previous to the beginning of the briefing at: https://us06web.zoom.us/webinar/register/WN_VmhZvajOQJ2yICWrk9ySzQ .
A short interview with Eric Desaulniers on this announcement can also be obtainable for viewing right here: https://youtu.be/kRkK3pPbqn4 . Members of the media could obtain high-resolution recordsdata at https://we.tl/t-t9Nwt9RiQR and make further interview or data requests to Julie Paquet, Vice President, Communications & ESG Technique at NMG.
Completion of the transaction stays topic to customary regulatory approvals, together with approval of the TSX Enterprise Alternate and NYSE, shareholder approval in respect of the Tranche 2 Funding, and different customary closing situations. Copies of the Subscription Settlement, the Offtake Settlement, and the Investor Rights Settlement shall be obtainable on the Firm’s web page on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov .
About Nouveau Monde Graphite
Nouveau Monde Graphite is striving to grow to be a key contributor to the sustainable power revolution. The Firm is working in the direction of growing a completely built-in supply of carbon-neutral battery anode materials in Québec, Canada, for the rising lithium-ion and gasoline cell markets. With enviable ESG requirements, NMG aspires to grow to be a strategic provider to the world’s main battery and vehicle producers, offering high-performing and dependable superior supplies whereas selling sustainability and provide chain traceability. www.NMG.com
About GM
Common Motors (NYSE:GM) is a world firm centered on advancing an all-electric future that’s inclusive and accessible to all. On the coronary heart of this technique is the Ultium battery platform, which can energy every thing from mass-market to high-performance automobiles. Common Motors, its subsidiaries and its three way partnership entities promote automobiles below the Chevrolet, Buick, GMC, Cadillac, Baojun, and Wuling manufacturers. Extra data on the corporate and its subsidiaries, together with OnStar, a world chief in automobile security and safety providers, will be discovered at www.gm.com .
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Cautionary Observe
All statements, aside from statements of historic reality, contained on this press launch together with, however not restricted to these describing the closing of the Transaction, together with Tranche 1 Funding and Tranche 2 Funding, a optimistic remaining funding determination and shutting of venture financing, closing of the potential whole fairness investments of US$275 million from GM, Panasonic Holdings Company and its co-investors, the Firm’s projection of turning into North America’s largest absolutely built-in lively anode materials producer, the anticipated advantages of the transactions described herein, the satisfaction of the situations to closing the transactions and the timing thereof, receipt of any regulatory approvals or shareholder approval in respect of the Transaction, the meant use of proceeds from the Tranche 1 Funding, anticipated advantages to GM in reference to the Transaction, the Firm’s relationship with its stakeholders, together with First Nations and communities, the optimistic affect of the foregoing on venture economics and shareholder worth, the conclusion of the situation precedents of the Provide Settlement and its entry into pressure, the availability of lively anode materials to GM, the Firm’s deliberate all-electric operations, success of the closing situations and completion of the Transaction, the meant manufacturing of eco-friendly superior supplies , traits in laws, client preferences, trade requirements, markets and expertise, the meant outcomes of the initiatives described on this press launch, and people statements that are mentioned below the “About Nouveau Monde” paragraph and elsewhere within the press launch which primarily describe the Firm’s outlook and targets, represent “forward-looking data” or “forward-looking statements” (collectively, “forward-looking statements”) throughout the that means of Canadian and United States securities legal guidelines, and are primarily based on expectations, estimates and projections as of the time of this press launch. Ahead-looking statements are essentially primarily based upon numerous estimates and assumptions that, whereas thought of affordable by the Firm as of the time of such statements, are inherently topic to important enterprise, financial and aggressive uncertainties and contingencies. These estimates and assumptions could show to be incorrect. Furthermore, these forward-looking statements have been primarily based upon varied underlying components and assumptions, together with the present technological traits, the enterprise relationship between the Firm and its stakeholders, the flexibility to function in a protected and efficient method, the well timed supply and set up at estimated costs of the gear supporting the manufacturing, assumed sale costs for graphite focus, the accuracy of any Mineral Useful resource estimates, future foreign money change charges and rates of interest, political and regulatory stability, costs of commodity and manufacturing prices, the receipt of governmental, regulatory and third get together approvals, licenses and permits on favorable phrases, sustained labor stability, stability in monetary and capital markets, availability of apparatus and demanding provides, spare elements and consumables, the varied tax assumptions, CAPEX and OPEX estimates, all financial and operational projections referring to the venture, native infrastructures, the Firm’s enterprise prospects and alternatives and estimates of the operational efficiency of the gear, and usually are not ensures of future efficiency.
Ahead-looking statements are topic to recognized or unknown dangers and uncertainties that will trigger precise outcomes to vary materially from these anticipated or implied within the forward-looking statements. Danger components that would trigger precise outcomes or occasions to vary materially from present expectations embrace, amongst others, these dangers, delays within the scheduled supply occasions of the gear, the flexibility of the Firm to efficiently implement its strategic initiatives and whether or not such strategic initiatives will yield the anticipated advantages, the provision of financing or financing on favorable phrases for the Firm, the dependence on commodity costs, the affect of inflation on prices, the dangers of acquiring the mandatory permits, the working efficiency of the Firm’s property and companies, aggressive components within the graphite mining and manufacturing trade, adjustments in legal guidelines and rules affecting the Firm’s companies, political and social acceptability threat, environmental regulation threat, foreign money and change price threat, technological developments, the impacts of the worldwide COVID-19 pandemic and the governments’ responses thereto, and common financial situations, in addition to earnings, capital expenditure, money move and capital construction dangers and common enterprise dangers. An extra description of dangers and uncertainties will be present in NMG’s Annual Data Type dated March 23, 2023, together with within the part thereof captioned “Danger Components”, which is on the market on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov . Unpredictable or unknown components not mentioned on this Cautionary Observe might even have materials adversarial results on forward-looking statements.
Many of those uncertainties and contingencies can immediately or not directly have an effect on, and will trigger, precise outcomes to vary materially from these expressed or implied in any forward-looking statements. There will be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Ahead-looking statements are supplied for the aim of offering details about administration’s expectations and plans referring to the longer term. The Firm disclaims any intention or obligation to replace or revise any forward-looking statements or to elucidate any materials distinction between subsequent precise occasions and such forward-looking statements, besides to the extent required by relevant legislation.
The market and trade knowledge contained on this press launch relies upon data from unbiased trade publications, market analysis, analyst studies and surveys and different publicly obtainable sources. Though the Firm believes these sources to be typically dependable, market and trade knowledge is topic to interpretation and can’t be verified with full certainty as a result of limits on the provision and reliability of uncooked knowledge, the voluntary nature of the data-gathering course of and different limitations and uncertainties inherent in any survey. The Firm has not independently verified any of the information from third-party sources referred to on this press launch and accordingly, the accuracy and completeness of such knowledge isn’t assured.
Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this launch.
Additional data concerning the Firm is on the market on SEDAR+ ( www.sedarplus.ca ), and for United States readers on EDGAR ( www.sec.gov ), and on the Firm’s web site at: www.NMG.com
View supply model on businesswire.com: https://www.businesswire.com/news/home/20240214552719/en/
MEDIA
Julie Paquet
VP Communications & ESG Technique
+1-450-757-8905 #140
jpaquet@nmg.com
INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993
mjasmin@nmg.com