NextSource ups Vision Blue financing for anode facility

Mr. Brent Nykoliation reports NEXTSOURCE MATERIALS ANNOUNCES UPSIZING OF FUNDING FACILITY FROM VISION BLUE RESOURCES TO ADVANCE UAE ANODE FACILITY DEVELOPMENT NextSource Materials Inc. has agreed to an extension to its drawdown credit facility of up to a further $10-million (U.S.) with Vision Blue Resources Ltd. The company is in active discussions with debt and equity investors that have expressed interest in funding its battery anode facility in the United Arab Emirates (UAE BAF). The funding from Vision Blue allows the company to progress its strategic partner process, advance the UAE BAF toward a final investment decision, and support the continued operation of the Molo mine and the development of its expansion opportunities. Hanre Rossouw, president and chief executive officer, commented, "Securing this additional financing from Vision Blue Resources provides NextSource with significant financial flexibility, allowing NextSource to advance critical technical workstreams and negotiations with strategic investors engaged in discussions around financing the company's battery anode facility in the United Arab Emirates." As announced on Jan. 30, 2025, the company secured a drawdown facility of up to $20-million (U.S.) and has drawn down on this initial facility in tranches, with the final tranche drawn in July, 2025. The facility from Vision Blue will continue to be drawn down in tranches, potentially increasing the total facility up to $30-million (U.S.), with the next tranche being $5-million (U.S.). Interest will accrue on the amount drawn down at a rate of 15 per cent per annum, and the loan is repayable on demand. The facility, including the additional loan, remains secured by the assets of the company, and NextSource may repay the facility at any time without penalty or bonus. Related party transaction Vision Blue holds 47.68 per cent of the company's issued and outstanding shares (47.68 per cent on a partially diluted basis). Accordingly, the facility constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The company is not required to obtain a formal valuation in respect of the facility. The company is exempt from the need to obtain minority shareholder approval per subsection 5.7(1)(f) of MI 61-101, as the facility is on reasonable commercial terms that are not less advantageous to the company than if the facility were obtained from a person dealing at arm's length with the company and the facility is not convertible, directly or indirectly, into equity of the company or a subsidiary of the company. The board of directors of NextSource, with the exception of Sir Mick Davis (being a director of Vision Blue) who declared his interest and recused himself, unanimously approved the facility. About NextSource Materials Inc. NextSource Materials is a battery materials company based in Toronto, Canada, that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals. The company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake graphite. The Molo mine has begun production through phase 1 mine operations. The company is also developing a significant downstream graphite value-add business through the staged rollout of battery anode facilities (BAF) capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, in a fully transparent and traceable manner. The company is now in the process of developing its first BAF in the UAE. NextSource Materials is listed on the Toronto Stock Exchange under the symbol NEXT and on the OTCQB under the symbol NSRCF. We seek Safe Harbor.