Nouveau Monde - NMG STOCK NEWS

Nouveau Monde Graphite Inc. (NYSE: NMG) announced the conversion of a C$15 million secured convertible bond held by Pallinghurst Graphite International Limited into common shares. This conversion, occurring in two tranches, results in Pallinghurst owning approximately 21% of the company's shares. Additionally, Nouveau Monde settled C$1,900,463 of accrued interest by issuing 220,471 common shares at C$8.62 each. The move enhances the company's flexibility for project financing as it aims to lead in sustainable battery anode material production.

Nouveau Monde Graphite has inaugurated its advanced R&D facility in Saint-Michel-des-Saints, enhancing its capabilities to test anode materials for battery and EV manufacturers. The company has expanded its R&D team to 25 experts, including two newly recruited scientists, and established a Scientific Advisory Committee to broaden its research scope. This strategic move is aimed at solidifying Nouveau Monde's competitive edge in developing high-performing, eco-friendly battery materials, supporting a growing demand in the lithium-ion battery market.

Nouveau Monde is focused on becoming North America’s first fully vertically integrated producer of lithium-ion battery anode material. The demand for graphite is projected to increase significantly due to an expected rise in lithium-ion battery production capacity. The company is advancing its production operations and plans to produce several hundred tonnes of coated spherical purified graphite (CSPG) starting in 2022. Further, Nouveau Monde is engaging with leading battery manufacturers to secure long-term supply agreements, aiming for a sustainable and efficient production process.

Nouveau Monde has initiated a patent application for its innovative thermochemical purification technology, aimed at enhancing sustainability in graphite production. This technology, set for use in its Phase 1 facility in Bécancour, Canada, is designed to generate high-purity graphite materials for lithium-ion batteries while avoiding harmful chemicals like hydrofluoric acid. The project includes a comprehensive feasibility study for a large-scale Phase 2 plant targeting commercial operations by 2023. Nouveau Monde aims to lead the shift toward greener alternatives in the graphite supply chain.

Nouveau Monde has initiated civil construction for the Matawinie graphite project, expected to be the largest high-purity graphite production facility in the Western World. The project began on schedule with site preparation and construction of an access road by L. Fournier & Fils. The Company has engaged Metso Outotec for procurement of essential processing equipment. Environmental and safety measures remain priorities. Detailed engineering is ongoing to support project advancement, with a focus on cost and timeline efficiency. The aim is to reach commercial operations by the end of 2023.

Nouveau Monde Graphite has successfully closed a non-brokered private placement, issuing 1,978,750 common shares at C$9.25 per share, yielding approximately C$18.3 million. This financing is part of their previously announced US$59.4 million public offering completed in June 2021. The funds from the private placement will support the development of the Matawinie mine project, the LiB anode plant project, and general corporate expenses. The completion of the placement is pending final TSX Venture Exchange approval.