Mason Resources Inc (MGPHF)

[nowwhat2]

By @Atachetatuque at CEO,ca

I have translated here an article by Hélène Baril published in "La Press +" published this morning which summarizes quite well the joint venture agreement between LLG and NMG via its subsidiary Black Swan Graphene.
Nouveau Monde Graphite and Mason Graphite, who each manage mining projects in Quebec on their own, have decided to pool their resources with the ambition of becoming the largest supplier of graphite to battery manufacturers in North America.
The agreement announced on Monday provides for an investment of 5 million by Nouveau Monde Graphite in the capital of Mason Graphite for a 51% stake in the Lac Guéret graphite mine project, located 285 kilometers from Baie-Comeau.
Nouveau Monde Graphite has also committed to do 10 million worth of work in the joint venture.
“It will become a very big project,” said Éric Desaulniers, president and CEO of Nouveau Monde Graphite, which is already developing a graphite mine and a demonstration plant in Saint-Michel-des-Saints.
It is a question of a production of 250,000 tons per year of graphite, "at least", specifies Éric Desaulniers, that is to say the sufficient size to compete with the Chinese producers, who currently reign on this market.
Nouveau Monde Graphite is more advanced in the development of its project, but the Mason Graphite deposit is richer. The potential resources are greater, and the graphite content of the Lac Guéret ore is five times higher than that of Nouveau Monde Graphite's Matawinie mine in Saint-Michel-des-Saints.
Ugo Lapointe, co-spokesperson for the Coalition Québec Better Mine, believes that the Lac Guéret project should be prioritized because it is more interesting and less controversial than that of Saint-Michel-des-Saints.
The transaction "can be excellent news if Nouveau Monde Graphite and Quebec decide to prioritize the development of the Lac Guéret mining project, which enjoys great social acceptability and which could produce twice as much graphite while generating three times less tailings in the environment than the Matawinie project," he commented.
OPPOSITION
Nouveau Monde Graphite faces opposition from residents of Saint-Michel-des-Saints, particularly vacationers who have chosen the region for its tranquility. The Bureau d'audiences publiques sur l'environnement had expressed reservations about the mine project and recommended additional studies to clarify several aspects of the planned operations.
Nouveau Monde Graphite, which has already spent 100 million on its Saint-Michel-des-Saints project, intends to continue its' development in concert with that of Lac Guéret.
The Minister of the Economy, Pierre Fitzgibbon, said he believed that the two projects are better than one. “By joining the forces of the two most advanced projects in North America, both located in Quebec, we are solidifying our battery value chain,” he said in a press release.
No graphite supply agreement has yet been concluded by Nouveau Monde Graphite with battery cell manufacturers. Negotiations are underway with several of them who want to diversify their sources of supply, indicated its president and founder during an interview with La Presse.
The creation of a joint venture majority controlled by Nouveau Monde Graphite must be approved by the shareholders of Mason Graphite. Nouveau Monde Graphite will pay $0.50 per share for its equity stake, representing a 10% premium to the closing price of Mason Graphite common stock on May 13, 2022.
Mason Graphite shares jumped 10.5 cents after the deal was announced to 56 cents. Nouveau Monde Graphite stock ended the day at $6.74, up 26 cents, or 4%. Over the past year, NMG's stock has fluctuated between a low of $6.36 and a high of $19.18.
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