NMG, Panasonic Energy and Mitsui Announce Offtake and Strategic Partnership Supporting the Supply of Active Anode Material plus US$50 Million Private Placement by Mitsui, Pallinghurst and Investissement Québec – QNT Press Release

+ Framework agreement between NMG, Panasonic Energy and Mitsui for the development and further commercialization of NMG’s integrated anode material operations in Québec, Canada

+ Signed memorandum of understanding to confirm intentions for a multi-year offtake agreement between NMG and Panasonic Energy for a significant portion of NMG’s active anode material out of NMG’s fully integrated “ore-to-anode-material” facilities

+ A total investment of US$50 million from Mitsui, Pallinghurst and Investissement Québec will support the next operational milestones for the project financing activities on both the Matawinie Mine and the Bécancour Battery Material Plant

+ Shareholders and analysts are invited to attend an Investor Briefing on Thursday, October 20 at 10:30 am ET hosted by NMG’s Management Team via webcast: https://us06web.zoom.us/webinar/register/WN_LxVC2YirS8izfF7UIneVzg

Nouveau Monde Graphite Inc. (“NMG” or the “Company”) ((NMG, TSX.V: NOU)), Mitsui & Co., LTD (“Mitsui”) ((8031) and Panasonic Energy Co., Ltd. (“Panasonic Energy”), a wholly owned subsidiary of Panasonic Holdings Corporation (“Panasonic”) ((6752), have entered into a Framework Agreement establishing the terms of the commercial relationship between the parties to enable the next development steps of NMG’s ore-to-battery-market integrated graphite project in Québec, Canada. NMG will use the proceeds of the abovementioned investment to work in the upcoming months on optimizing the feasibility study on NMG’s Phase-2 Commercial integrated operations, which is available on SEDAR and EDGAR, based on the memorandum of understanding for the contemplated offtake agreement.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221020005446/en/

Eric Desaulniers and Hiroshi Kakiuchi officialize the partnership at a signing ceremony at NMG’s Phase-1 plant (Photo: Business Wire)

Kazuo Tadanobu, President & CEO of Panasonic Energy, commented:We are very pleased to be participating in this strategic partnership with NMG, which will allow us to explore the possibility of establishing an environmentally friendly supply chain in North America through a completely new integrated anode production in Canada. As a manufacturer of EV lithium-ion batteries with the largest share of the North American market, given our leading technology and depth of experience, we aim to continue driving the growth of the industry and accelerating toward a decarbonized society.”

Hiroshi Kakiuchi, Managing Officer of Mitsui, added: We are very excited to be working with NMG and participating in their mission to establish a stable lithium-ion battery supply chain for electric vehicles in North America and contribute to the realization of a low-carbon society. In particular, we are inspired by Eric Desaulniers’ vision to take on the unprecedented challenge of establishing the whole process of anode material production, from mining to manufacturing, which is to be completed in North America in an environmentally friendly way.”

Arne H Frandsen, Chair of NMG, said: “NMG is committed to delivering the highest quality anode material, exclusively mined and produced in North America. The partnership with Panasonic Energy and Mitsui – two blue-chip leaders of the industry – should further secure our leading position in the battery materials space. More than ever, we will continue to vigorously increase our relevance in the North American market, benefitting from US and Canadian legislation supporting locally produced batteries.”

Eric Desaulniers, Founder, President, and CEO of NMG, reacted: “I am delighted to embark on this transformative partnership with experienced and industry-leading partners Mitsui and Panasonic Energy. It is set to provide NMG with a solid commercial foundation for deploying our Phase-2 Commercial operations. Their participation is a testament to our sound business model and a lever at this pivotal time to advance our business plan towards establishing what is projected to become North America’s largest fully integrated natural graphite production.”

Andrew Willis, Co-Chief Executive of The Pallinghurst Group, remarked: “We are proud at Pallinghurst to have worked with NMG in reaching this critical milestone. The Company’s commercial model and strong ESG credentials are extremely attractive; we are reiterating our confidence by reinvesting in NMG’s growth. We are excited for the next chapter as NMG positions itself as a preferred integrated graphite supplier for the Western battery and EV market.”

Guy Leblanc, CEO of Investissement Québec, noted: “This investment reflects our commitment to establishing Québec as a leading North American hub for lithium-ion batteries. Nouveau Monde Graphite is clearly a key player in this sector and will contribute enormously to the province’s energy transition. Investissement Québec is proud to have supported them in their growth from the outset and in this new phase of their development.”

Memorandum of Understanding on Offtake Agreement

The strategic transaction comprises a non-binding memorandum of understanding on an offtake by Panasonic Energy of a significant portion of NMG’s green active anode material out of the Company’s integrated Phase-2 Commercial production facilities over a multi-year term. While there can be no assurance that a final offtake agreement with Panasonic Energy will be completed, NMG and Panasonic Energy will work together in the upcoming months to establish a definitive offtake agreement.

Convertible Notes

NMG is also pleased to announce that it has entered into unsecured convertible note subscription agreements with each of Mitsui, Pallinghurst and Investissement Québec pursuant to which NMG has agreed to issue to each holder an unsecured convertible note (the “Convertible Notes”), for aggregate gross proceeds of US$50 million (the “Private Placement”). In connection with the Private Placement, Mitsui will subscribe for US$25 million in Convertible Notes, while Pallinghurst and Investissement Québec will each subscribe for US$12.5 million.

The Convertible Notes will mature 36 months from the date of issuance (the “Maturity Date”) and shall bear interest …

Full story available on Benzinga.com

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