Mason cheers financing for Nouveau Monde's Matawinie

Executive Summary

• Nouveau Monde Graphite Inc. (NMG) has secured a fully committed senior project debt commitment letter totaling $335 million (U.S.) from Export Development Canada (EDC) and the Canada Infrastructure Bank (CIB) to finance the Phase 2 development of its Matawinie mine.
• The financing represents a critical milestone toward the Final Investment Decision (FID), with the project already considered "shovel-ready" due to advanced engineering (approx. 80%), secured permits, and community agreements.
• The transaction is underpinned by long-term offtake agreements covering 75% of Phase 2 production with the Government of Canada, Panasonic Energy, and Traxys North America LLC, providing significant revenue visibility and de-risking the project.

Key Details

• Total Debt Commitment: $335 million (U.S.) in senior secured project debt facilities.
• Facility Structure:
  • $290 million (U.S.) senior secured term loan facility.
  • $45 million (U.S.) senior secured cost overrun debt facility.
• Lenders: Export Development Canada (EDC) and Canada Infrastructure Bank (CIB).
• Use of Proceeds: Financing eligible project construction costs, working capital requirements prior to completion, and transaction costs associated with the financing.
• Security: First-ranking security over the Matawinie mine project and all material assets.
• Offtake Agreements: 75% of Phase 2 future production is earmarked for:
  • Government of Canada.
  • Panasonic Energy Co. Ltd. (wholly owned subsidiary of Panasonic Holdings Corp.).
  • Traxys North America LLC.
• Project Status:
  • Detailed engineering is approximately 80% complete.
  • Site preparatory work executed.
  • Key permits secured.
  • Instrumental agreements in place with the Atikamekw First Nation of Manawan and local community.
  • Referred to the Major Projects Office as a "project of national interest."
• Major Contracts: Major contracts awarded over the past few months represent over 50% of the project's capital expenditures and are within estimates of NMG's updated feasibility study (NI 43-101), with full execution pending FID.
• Next Steps: NMG is actively negotiating with targeted strategic investors for the equity component of the project financing. Financial close and drawdowns are expected to follow the completion of definitive documentation and satisfaction of customary conditions precedents.
• Advisers: Societe Generale acting as debt adviser.

Notable Quotes

• Eric Desaulniers, Founder, President and CEO of NMG: "A defining milestone for the Matawinie mine, this commitment from EDC and CIB reflects the depth of Canadian public finance expertise behind large, strategic infrastructure and critical minerals developments, and it validates the bankability of our project... Matawinie is shovel-ready and substantially derisked."
• Dominic LeBlanc, Minister of Internal Trade: "By securing this long-term financing for phase 2 of the Matawinie mine, Nouveau Monde Graphite is helping strengthen a supply chain that is vital to our economic security while supporting Canada and other G7 countries in sourcing critical minerals in a reliable and responsible way."
• Alison Nankivell, CEO of EDC: "EDC is pleased to lead this financing round in support of the Nouveau Monde graphite project, reflecting our commitment to building a strong, end-to-end critical minerals ecosystem in Canada."