Junior graphite miner surpasses $1B in proposed financing
The project holds an estimated net present value of US$1.05 billion
Nouveau Monde is developing graphite mining and processing operations to supply carbon-neutral active anode material for electric vehicles and renewable energy storage systems
Nouveau Monde Graphite stock has given back 8.2 per cent year-over-year but remains up by 18.6 per cent since 2020
Junior miner Nouveau Monde Graphite (TSX:NOU) has received more than US$1 billion in non-binding letters of interest for debt financing from institutional funds and export credit agencies to develop its phase-2 Matawinie mine and Bécancour battery material plant in Quebec.
Potential deals include US$430 million from Export Development Canada, US$172 million from the Export–Import Bank of the United States, and over US$481 million from undisclosed parties interested in the project's strategic and economic significance. Ongoing discussions are centred on long-term debt with maturities beyond 10 years with no capital repayment during project construction.
The feasibility-stage mine and battery material plant has been shown to be economically viable for the production of natural graphite and active anode material, boasting an estimated net present value of US$1.05 billion, initial CAPEX of US$1.32 billion, a payback period of only 5 years, and over 8 million tons of graphite resources and reserves to be processed over a 25-year mine life.
According to Wednesday's news release, Nouveau Monde is advancing due diligence towards a final investment decision for phase-2 operations, covering the project's corporate, technical, market and ESG components, with eyes on capitalizing on rising graphite demand and the fast-growing North American battery and EV sector. Leadership insights
'We have been extremely busy in the past weeks to present the results of our updated feasibility study and engage with our financial stakeholders to advance our project financing,' Eric Desaulniers, founder, president and chief executive officer of Nouveau Monde Graphite, said in a statement. 'Feedback has been positive as demonstrated by the quality of lenders rallying behind our business plan. Economies around the world are seeking opportunities to relocate and secure critical minerals mining and processing to enable local manufacturing, economic resilience, energy autonomy and national security.' About Nouveau Monde Graphite
Nouveau Monde is developing graphite mining and processing operations to supply carbon-neutral active anode material for electric vehicles and renewable energy storage systems.
Nouveau Monde Graphite stock (TSX:NOU) is up by 9.44 per cent on the news trading at C$2.55 as of 11:50 am ET. The stock has given back 8.2 per cent year-over-year but remains up by 18.6 per cent since 2020.
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