HIGHLIGHTS
- Vision Blue Resources Ltd, a newly created battery commodity/resource-focused investment company founded by Sir Mick Davis (former CEO of Xstrata Plc), has committed to a strategic investment in NextSource Materials to fully fund the construction of its Molo graphite mine in Madagascar
- Financing Package for total gross proceeds of US$29.5M as follows:
- US$6.1M equity private placement to close prior to end of February
- US$12.4M equity private placement to close following shareholder approval
- US$11.0M in non-dilutive royalty financing
- Proceeds to be used to bring the Molo mine into production with targeted completion in first half of 2022
- Proceeds to be further used to fast-track completion of two technical studies to confirm the capital and operating costs for the next phase of mine expansion, and construct a value-added graphite processing plant to produce SPG (spheronized, purified graphite) for lithium-ion batteries in electric vehicles
- Construction of the Molo mine to commence imminently following the closing of the first private placement with ordering of the longer lead items for the mine processing plant
- Vision Blue granted a "Right of First Refusal" to provide financing for the expansion plan of the Molo mine
- Sir Mick Davis to be appointed Chairman of NextSource Materials upon Closing of the initial private placement
TORONTO, ON / ACCESSWIRE / February 8, 2021 / NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that it has entered into a binding agreement with Vision Blue Resources ("Vision Blue"), a private investment company created and led by Sir Mick Davis, former CEO of Xstrata Plc, to provide a financing package (the "Financing Package") for total gross proceeds of US$29.5M. The proceeds of the Financing Package will be used to bring the Company's Molo graphite mine in Madagascar into full production, with targeted completion in the first half of 2022.
Sir Mick Davis commented,
"This investment in NextSource underlines our belief that the massive secular change in demand for critical battery material resources is not being met by an appropriate supply side response, largely as a result of capital constraints. Vision Blue's investment into NextSource is aligned with our strategy to assemble a portfolio of strategically significant investments in high-quality, responsibly managed and proven battery material mining assets.
We view NextSource's Molo project as one of the best graphite assets globally and well-positioned for significant upside in growth and value due to the impressive strategic partnerships they have forged.
Our initial investment is just the first in unlocking Molo's potential and it is our intention to help create a major battery materials producer on a global scale. We are pleased to support its growth to realise its value for all investors and stakeholders."