Nouveau Monde appoints financial advisers for Matawinie project, shares up

Construction of the Matawinie project. Credit: Pallinghurst Group

Looking to advance its flagship Matawinie project in Québec, Nouveau Monde Graphite (NYSE: NMG) (TSXV : NOU) announced on Wednesday the appointment of SD Capital Advisory (SDCA) and GKB Ventures (GKB) as joint financial advisors to assist with the structuring and arranging of the project’s financing.

In particular, the graphite developer said it will focus on accessing international debt finance through export credit agencies, which generally act as intermediaries between national governments to expedite international trade.

“With the commencement of construction activities at our Matawinie property, we have a clear roadmap to building, commissioning and delivering what is projected to be the largest North American graphite operation,” Eric Desaulniers, president and CEO of Nouveau Monde, explained in the news release.

“SDCA and GKB will help further refine our project financing parameters and assist us to gain access to international debt finance, a strategic step in developing a sound capital structure that supports our long-term growth,” Desaulniers added.

SDCA is a London-based independent financial boutique that focuses on securing project finance for corporates and mining/resources companies in developed and frontier markets.

GKB is an independent consultancy helping clients to secure cross-border transactions and access international finance via ECAs.

“We are attracted by the exceptionally strong characteristics of the Matawinie project and Nouveau Monde’s industry-leading ESG characteristics using sustainable and innovative development measures and commitment to a tailor-made climate action plan,” David Buckle, chairman of SDCA, and Gabriel Buck, managing director of GKB, said in a joint statement.

Located in Saint-Michel-des-Saints, 150 km north of Montréal, Nouveau Monde’s Matawinie graphite project is planned as the first open-pit operation in Canada that will exclusively use electric equipment.

At full scale, this operation is expected to produce 100,000 tonnes of spherical purified graphite for the battery electric vehicle and energy storage markets.

Shares of Nouveau Monde Graphite surged nearly 18% by noon ET Wednesday, recovering its losses from earlier in the week. The company has a market capitalization of C$343.7 million.

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