Nouveau Monde Graphite secures $335 million debt for Matawinie mine

Nouveau Monde Graphite Inc. (NYSE: NMG) has secured a commitment letter for $335 million in senior project debt from Export Development Canada and the Canada Infrastructure Bank to support construction of its Phase-2 Matawinie Mine in Quebec.

The financing package includes a $290 million senior secured term loan facility and a $45 million cost overrun debt facility. The funds will support construction, development and commissioning of what the company describes as a project to become the largest graphite mine in the G7.

The debt commitment requires completion of definitive documentation, final legal and regulatory due diligence, and satisfaction of customary conditions before becoming available. Société Générale is serving as debt advisor for the transaction.

The project has secured long-term offtake agreements covering 75% of future production with the Government of Canada, Panasonic Energy Co., Ltd., and Traxys North America LLC. The mine has been designated as a project of national interest by the Canadian government.

According to the company, detailed engineering is approximately 80% complete, with site preparatory work underway and key permits secured. Agreements have been established with the Atikamekw First Nation of Manawan and the local community.

Major construction contracts representing over 50% of the project's capital expenditure have been awarded with provisions for full execution upon reaching a positive final investment decision. The company is currently negotiating with strategic investors for the equity portion of the project financing.

The facilities will fund eligible construction costs, working capital requirements, and transaction costs associated with the financing. The cost overrun facility provides additional protection against construction cost increases, subject to defined conditions.

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