Nouveau Monde Graphite (NMG) said that it is progressing with its project debt financing for the Phase-2 Matawinie Mine and Bécancour Battery Material Plant, having received over $1bn in letters of interest from institutional funds and export credit agencies.
The financing structure is being designed to support the integrated graphite projects located within 150km of Montréal, Québec, Canada.
Earlier this year, NMG published an updated technical feasibility study report that confirmed the technical and economic feasibility of the project, projecting an after-tax internal rate of return (IRR) of 17.5% and a net present value (NPV) of over $1bn.
NMG is now in the project financing stage aiming for a final investment decision (FID).
The letters of interest form a crucial component of NMG’s Phase-2 project financing strategy and reinforce the company’s journey towards FID.
Among these commitments, Export Development Canada (EDC) has expressed potential support with $430m.
The Export–Import Bank of the United States (EXIM) has shown interest with $172m under its Supply Chain Resiliency Initiative to bolster US supply chains and reduce dependency on China. There are also interests exceeding $481m from undisclosed parties.
NMG founder, president, and CEO Eric Desaulniers said: “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. 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.”
NMG said that it is engaged in discussions with various governmental bodies, public institutions, and export credit agencies for an overall debt funding package. The anticipated senior debt aligns with NMG’s financial expectations, considering a debt-to-equity ratio consistent with project projections.
Options for long-term debt or guarantees exceeding ten years are being considered, excluding capital repayment during construction phases. While the letters of interest demonstrate intent, they remain non-binding and contingent upon the successful completion of equity financing and other conditions precedent related to purchase obligations under offtake agreements.
According to NMG, progress towards FID involves ongoing due diligence supported by advisory firms evaluating corporate, technical, market, and ESG components of Phase-2 operations. These evaluations will guide financial stakeholders’ risk assessments and contribute to legal documentation structuring ahead of investment reviews, said the firm.
Additionally, NMG is preparing technical documentation for FID through engineering efforts, supplier contract negotiations, tender preparations for construction, and value engineering to ensure efficient project execution once financing concludes.
