- \n
- \nMulti-year offtake agreements and term sheet arrangements, including take-or-pay provisions, with tier-1 commercial partners to supply and market NMG\u2019s Phase-2 future production to strategic industries in North America, Europe and allied countries, providing market diversification and reducing project risks.<\/p>\n<\/li>\n
- \nMatawinie Mine project financing process progressing well with due diligence exercises nearing completion and long-form term sheet negotiations ongoing ahead of respective lenders\u2019 credit committees.<\/p>\n<\/li>\n
- \nProgress on Phase-2 Matawinie Mine procurement through finalization of supply agreements for equipment packages, negotiation of contracts with key suppliers, and the launch of tenders for the construction phase.<\/p>\n<\/li>\n
- \nSegregated and updated Feasibility Study results covering the Phase-2 Matawinie Mine in light of NMG\u2019s new commercial plans potentially covering almost 100% of the future production.<\/p>\n<\/li>\n
- \nAdvancement in engineering, technological development, and project optimizations for an initial capacity of the Phase-2 B\u00e9cancour Battery Material Plant.<\/p>\n<\/li>\n
- \nRecruitment of Arnaud Quatannens as Senior Director of Engineering, Battery Materials Plant to support the technical development of NMG\u2019s processing activities.<\/p>\n<\/li>\n
- \nTwelve-month rolling total recordable injury frequency rate (\u201cTRIFR\u201d) of 3.77 at the Company\u2019s facilities (severity rate at 1.88) and 0 for contractors onsite; and no major environmental incidents.<\/p>\n<\/li>\n
- \nPeriod-end cash position of $61.7 million.<\/p>\n<\/li>\n<\/ul>\n
MONTR\u00c9AL–(BUSINESS WIRE<\/a>)–
\nNouveau Monde Graphite Inc. (\u201cNMG\u201d or the \u201cCompany\u201d) (NYSE: NMG<\/a>, TSX: NOU<\/a>) provides an update on its project development, commercialization and financing advancements in view of reaching a final investment decision (\u201cFID\u201d) for its natural graphite production destined to North American, European and G7-allied markets. With potentially 100% of the future Phase-2 Matawinie Mine flake graphite production reserved, the Company is progressing its project development through engineering, procurement, and financing activities.<\/p>\nThis press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20251112730891\/en\/<\/a><\/p>\n
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<\/p>\nThe Honourable Tim Hodgson, Canada\u2019s Minister of Energy and Natural Resources, and Eric Desaulniers, NMG\u2019s Founder, President, and CEO, executed binding supply and marketing term sheets establishing a multiyear framework for an aggregate of 30,000 tpa of graphite concentrate from the Phase-2 Matawinie Mine, including a 15,000 tpa take-or-pay commitment by the Government of Canada, with the balance to be secured from allied countries and entities.<\/p>\n<\/div>\n
\nEric Desaulniers, Founder, President, and CEO of NMG, stated: \u201cThanks to our commercial partnerships we are tapping into industrial know-how, developed supply chain footprints, and strong diplomatic ties to broaden market access for the flake graphite from our Matawinie Mine. Our team is now actively engaged with lenders, strategic investors, and customers to line up financing efforts and term negotiations in view of FID.\u201d<\/i><\/p>\n
Renewed Commercial Strategy<\/b><\/p>\n
\nThrough recently announced offtake agreements and term sheet arrangements<\/a>, NMG has expanded its commercial approach to serve growth industries in the Western World, including the energy, defense, technology, and manufacturing sectors. This multimarket diversification provides NMG with the opportunity to maximize high-margin products in the Company\u2019s portfolio and establish itself within North American, European and allied countries\u2019 strategic supply chains.<\/p>\n
NMG and Panasonic Energy<\/a> Co., Ltd. (\u201cPanasonic Energy\u201d), a wholly owned subsidiary of Panasonic Holdings Corporation (\u201cPanasonic\u201d) (TYO: 6752) have revised their commercial agreement (the \u201c2025 Panasonic Energy Binding Offtake Agreement\u201d) with the objective of advancing the production of 13,000 tonnes per annum (\u201ctpa\u201d) of active anode material via NMG\u2019s Phase-2 integrated value chain. Approximately 25,000 tpa of graphite concentrate is being reserved from the future Phase-2 Matawinie Mine production to execute this Panasonic Energy volume. The 2025 Panasonic Energy Binding Offtake Agreement contains conditions precedent and qualification requirements of the product and the commercial operations.<\/p>\n
\nNMG has signed a binding term sheet with the Government of Canada for a seven-year offtake of 30,000 tpa of graphite concentrate reserved for Canada and allied countries and entities for strategic applications and commercialization in domestic markets. Through this commitment, the Government of Canada is set to secure 15,000 tpa of graphite concentrate on a take-or-pay basis at a fixed North American market price and reserves 15,000 tpa for allied countries or entities, for NMG to formalize via offtake agreement(s) on similar terms. The term sheet offtake framework is conditional upon the Government of Canada receiving necessary approvals and completing its appropriation process, the parties executing definitive agreements including entering into at least one additional commitment from an allied countries or entities on substantially the same terms as the term sheet to purchase the reserved 15,000 tpa. A marketing term sheet in relation to the Government of Canada\u2019s committed volume allows NMG to market their volume and includes a 50-50 profit split above the agreed upon fixed price net of any losses that the Government of Canada may have incurred and any marketing fees paid to NMG.<\/p>\n
NMG and Traxys North America<\/a> LLC (\u201cTraxys\u201d) have updated their commercial and marketing agreement (\u201c2025 Traxys Binding Offtake and Marketing Agreement\u201d) to secure up to 20,000 tpa of graphite concentrate offtake from the Phase-2 Matawinie Mine for the refractory market in North America and Europe, which is subject to Traxys\u2019 Board approval. With an initial seven-year term, the agreement includes sales pricing based on market indices with 10,000 tpa of firm take-or-pay volume.<\/p>\n
\nNMG is in active negotiations with an established anode manufacturer (the \u201cManufacturer\u201d) to secure up to 30,000 tpa of graphite concentrate from the Phase-2 Matawinie Mine over an initial six-year period. The take-or-pay portion of this volume, expected to represent approximately 15,000 tpa with sales pricing based on market indices with a floor price, is intended to serve as feedstock for active anode material production to potentially support General Motors Holdings LLC (\u201cGM\u201d), a wholly owned subsidiary of General Motors Co. (NYSE: GM), and other customers.<\/p>\n
\nThere can be no assurance that NMG will be able to conclude the definitive agreements with the Government of Canada and\/or allied countries and entities, and\/or with the Manufacturer, that the Manufacturer and GM will be able to conclude a definitive agreement, or that NMG will be able to meet the conditions precedent of the 2025 Panasonic Energy Binding Offtake Agreement, the definitive agreements once executed or the conditions precedent of any or all of the offtake and marketing agreements mentioned above.<\/p>\n
Project Development and Path to FID<\/b><\/p>\n
\nNMG continues to advance its Phase-2 Matawinie Mine and Phase-2 B\u00e9cancour Battery Material Plant via samples production and process optimization at its Phase-1 and third-party facilities, engineering, and construction preparation.<\/p>\n
\nDuring the period, NMG completed the construction of key environmental infrastructure at the demonstration mining site and initiated new ore extraction campaigns to produce additional flake concentrate volumes at the Phase-1 Demonstration Plant. These volumes will enable supplementary product sampling and qualification for battery and strategic market segments.<\/p>\n
\nProcurement progresses for the Phase-2 Matawinie Mine through technical reviews and finalization of supply agreements for important equipment packages, alongside the negotiation of contracts with key suppliers, and the launch of civil, concrete, and steel tenders for the construction phase.<\/p>\n
\nIn parallel, NMG is assessing the commercial and technical feasibility of an initial capacity in the Phase-2 B\u00e9cancour Battery Material Plant, with a view to efficiently fulfilling its committed volumes for Panasonic Energy.<\/p>\n
\nThe project financing process has significantly advanced in recent months. The due diligence processes are well advanced, supported by specialized advisory firms, which are proceeding concurrently to assess the corporate, technical, market, and ESG components of NMG\u2019s planned Phase-2 operations and to guide financial stakeholders\u2019 risk assessment. The due diligence outcomes will feed into the structuring of legal documentation and a project debt package ahead of investment committee reviews. This workstream will be finalized upon having signed definitive agreements with offtakers. Negotiations on a long-form term sheet are ongoing ahead of the lenders\u2019 respective investment committees to seek credit approval in the coming months. In light of its renewed commercial strategy, NMG intends to confirm the support of its strategic investors and targeted lenders toward the project financing, either for a combined FID encompassing the Phase-2 Matawinie Mine and the Phase-2 B\u00e9cancour Battery Material Plant, or for a sequenced FID starting with the Phase-2 Matawinie Mine followed by the Phase-2 B\u00e9cancour Battery Material Plant.<\/p>\n
Matawinie Mine Feasibility Study Results<\/b><\/p>\n
\nConsidering the contemplated potential sequenced FID, NMG tasked BBA Inc. and various specialized consultants with the preparation of a segregated and updated feasibility study for the Phase-2 Matawinie Mine (\u201cNI 43-101 Technical Report: 2025 Feasibility Study for the Matawinie Graphite Mine\u201d) in accordance with National Instrument 43-101 (\u201cNI 43-101\u201d).<\/p>\n
\nWith a project globally unchanged, the NI 43-101 Technical Report: 2025 Feasibility Study for the Matawinie Graphite Mine refined some financial parameters to reflect the commercial agreements and latest CAPEX projections in line with ongoing procurement activities. Results continue to demonstrate technical and economic viability of the Phase-2 Matawinie Mine.<\/p>\n
Table 1: Operational and Economic Highlights of the Matawinie Mine<\/i><\/p>\n
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