Northern Graphite Closes Sprott Streaming Financing Restructuring Transaction

Northern Graphite Corporation announced on November 13, 2026, that it has closed a restructuring agreement with Sprott Resource Streaming and Royalty Corp. The transaction eliminates approximately US$23.6 million in senior secured debt and accrued interest. To satisfy the debt, the company issued 12.5 million common shares to Sprott Streaming, increasing their stake to 9.9% of basic shares outstanding and making them the largest shareholder.

As part of the agreement, the Okanjande project streaming agreement was amended to remove the 350,000-tonne production cap and convert the stream into a 1.0% royalty on all future production. Additionally, priority payment terms were established for approximately US$4.7 million in accrued royalties on the Lac des Iles mine, which are payable from future equity financings or IP licensing proceeds.

The 12.5 million shares issued are subject to a four-month and one-day hold period, expiring March 13, 2027. The transaction was conditionally accepted by the TSX Venture Exchange and remains subject to final acceptance.

Northern Graphite Corporation (NGC) has closed its restructuring, a move that removes a significant debt overhang and eliminates covenant breach risks that have weighed on the balance sheet since late 2025. As part of the deal, the Okanjande stream was converted to a 1.0% royalty, aligning future payments with production to improve near-term cash flow flexibility. The transaction also involved the issuance of 12.5 million shares, representing substantial dilution of approximately 7.5% of the pre-transaction share count, which offsets some of the balance sheet relief.

Despite the financial restructuring, operational and legal headwinds remain unchanged. The Lac des Iles mining lease suspension is currently under appeal, and the restart of the Okanjande operation has been delayed to 2028. Furthermore, the company’s cash position remains critically low at $0.2 million as of Q2 2026, meaning the restructuring does not solve the immediate liquidity crunch. The market likely priced in this closing following the April 2026 announcement, treating the execution as a routine administrative milestone rather than a surprise catalyst.

Northern Graphite Corporation (NGC) operates the Lac des Iles (LDI) facility in Quebec, serving as North America’s only producing natural graphite mine. The company is pursuing a vertically integrated "mine-to-battery" strategy, which involves developing downstream Battery Anode Material (BAM) processing capabilities.

Flagship assets include the Lac des Iles mine in Quebec, the Okanjande project in Namibia, and multiple BAM processing sites located in Saudi Arabia, Canada, and France. The company holds a 3.29 million tonne contained graphite resource across its portfolio and targets a total production capacity of 100,000 tonnes per year from its concentrate and BAM facilities.