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Nouveau Monde Graphite Inc.

TSXV Exchange | Aug 18, 2019, 8:21 PM EDT | Real-time price

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Nouveau Monde Graphite Announces Closing of a Loan Financing for an Amount of $4,655,000 and Grants for an Amount of $1,188,225

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN THE UNITED STATES

SAINT-MICHEL-DES-SAINTS, Quebec, Dec. 20, 2018 (GLOBE NEWSWIRE) -- NOUVEAU MONDE GRAPHITE INC. (the “Corporation” or “Nouveau Monde”) (TSX Venture Exchange: NOU) (OTCQX: NMGRF) (Francfort: NM9) announces that it has closed a financing with Investissement Québec for an aggregate amount of $4,665,000 through four loan offers for which the first tranche of an amount of $3,361,788 has been received while the second tranche will be received in 2019  pursuant to Nouveau Monde’s cash flow needs but subject to the achievement of conditions set forth in the loan offers.

Two of the loan offers are of an aggregate amount of $943,000, which amount bears interest at the actual  preferential rate of 3.95% per year increased of 2.3%. The interests shall be paid on a monthly basis for the duration of the term while the repayment of capital shall be paid at the end of the term, at the latest, being June 30, 2019. The two other loan offers are of an aggregate amount of $3,722,000, which amount bears interest at the actual  preferential rate of 3.95% per year increased of 2.43%. The interests shall be paid on a monthly basis for the duration of the term while the repayment of capital shall be paid at the end of the term, at the latest, being June 30, 2020. In order to secure its obligations set forth in the loan offers, Nouveau Monde granted first ranking mortgages for an aggregate amount of $4,665,000 charging the universality of its present and future claims and  accounts receivables.

During 2018, Nouveau Monde entered into grant agreements related to grants from different levels of government for an aggregate amount of $1,188,225. Pursuant to those agreements, Nouveau Monde received to this day an amount of $79,940 and Nouveau Monde anticipates receiving the outstanding amounts in 2019.

“Government financial support is an important tool to encourage development and innovation. We are privileged that our governments recognize the importance of supporting local businesses and that our partners are committed to innovation in the development of our Matawinie project.” stated Eric Desaulniers, President and Chief Executive Officer of Nouveau Monde.

About Nouveau Monde Graphite

In 2015, Nouveau Monde Graphite discovered a major and high-quality graphite deposit on its Matawinie property, located in Saint-Michel-des-Saints, 150 km North of Montréal. This discovery led to the completion of a Feasibility Study, the results of which were announced on October 24, 2018. The Feasibility Study revealed strong economics with projected graphite concentrate production level of 100,000 tonnes per year over a 25.5-year period. NMG will operate its demonstration plant until 2020. During this period, NMG expects the production of 2,000 tonnes of concentrated flake graphite to qualify its products with North American and international clients.

Moreover, in a vertical integration and sustainable development perspective, Nouveau Monde is planning the establishment of a large-scale graphite secondary transformation facility, catering the needs of the booming lithium-ion battery market. With over 60 years of experience in the world of graphite, NMG’s team develops its project with the utmost respect of neighboring communities, while favoring a minimal ecological footprint. NMG’s project is privileged by direct access to the workforce and infrastructure needed to operate its mining project, and it can also rely on an abundant, affordable and renewable source of hydroelectricity.

For more information:

Eric Desaulniers   Tristan Menard
President & CEO     Executive Vice-President, Capital Markets       
Tel: +1 (819) 923-0333Tel: +1 (514) 296-6339

www.nouveaumonde.ca

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http://nouveaumonde.ca/en/support-nmg/

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements, other than statements of historical fact, contained in this press release including, but not limited to, the Corporation’s project financing endeavours and the receipt of sufficient proceeds therefrom such that the Corporation will be able to fund the construction and commissioning of its mine project on the Matawinie Graphite Property, constitute “forward-looking information” and “forward-looking statements” within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. There is no assurance that the Corporation will be able to raise the required capital in the next 25 months.

All statements, other than statements of historical fact, contained in this press release including, but not limited to generally, or the “About Corporation Graphite” paragraph which essentially describe the Corporation’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.

Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. 

Further information regarding Corporation is available in the SEDAR database (www.sedar.com) and on the Corporation’s website at: www.nouveaumonde.ca 

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