ENERGY MINERALS

Nouveau Monde nets more than C$5M in government support

Nouveau Monde Graphite has received offers of financial support from both the Canadian and Quebec governments totalling more than C$5.2 million (US$3.7 million) for its Matawinie project.

Staff Reporter
Nouveau Monde Graphite has received offers of financial support from both the Canadian and Quebec governments totalling more than C$5.2 million

Nouveau Monde Graphite has received offers of financial support from both the Canadian and Quebec governments totalling more than C$5.2 million

The Saint-Michel-des-Saints, Quebec-based developer said it had agreed to terms with Quebec government crown corporation Transition énergétique Québec for a non-refundable grant of up to $3 million through the Technoclimat programme, which will be used to optimise a purification furnace for its pilot plant to produce purified graphite.

The company has developed thermochemical transformation process, a new 'green' purification technology that uses renewable hydroelectricity from Hydro-Québec, enabling it to sustainably and responsibly produce high-purity graphite for the growing lithium-ion battery market.

The company has also recently closed two loans with Investissement Québec totalling $2 million that are ready to be disbursed in step with the company's cash flow needs, subject to conditions.

Further, as a result of COVID-19's impact on Canadian businesses, Sustainable Development Technology Canada, a foundation funded by the Canadian government, has increased its initial 2019 commitment of $4.25 million by 5% for the project to build a value-added graphite purification processing and commercialisation facility. This supplement represents a further $212,500, which was received at the end of March.

"The confidence that the Quebec and Canadian governments have shown in our project attests to the robustness of our business strategy and to an enhanced partnership between the public sector and the industry to develop a green and sustainable economy in the country," said Nouveau Monde CEO Eric Desaulniers. "Our team has always striven to make sustainable development, innovation and sound governance key priorities so that we can create value both for the market and our society."

Management recently said it expected first construction shovels in the ground this fall.

Matawinie's latest resource update showed a 25% lift in the total to 120.3Mt grading 4.26% graphitic carbon.

A 2018 feasibility study calculated an after-tax NPV, at 8% discount, of US$575 million, with an IRR 32.2%. Capex was pegged at $211 million, including 12.4% contingency. It has a post-tax payback of 2.6 years.

Shares in the company (NOU:TSXV) have gained about one-third in value in the past 30 trading days to 24c, which capitalises it at $59 million (US$42.5 million).

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.