How will Lac Gueret get financed? Now that the date for Mason’s special shareholders meeting is approaching, a closer look at the tentative arrangement is warranted. Mason’s contribution to the proposed joint venture is obviously, far beyond that of NMG. Mason developed the Lac Gueret property, completed a feasibility study, completed site permitting, signed agreements with aboriginal groups, completed 75% of the detailed engineering for a 50,000 t/a mining operation, completed a battery testing program that was highly successful, and has already purchased some of the long-lead-time mining equipment (grinding mills). Now Mason is handing over controlling interest to one of the world’s richest graphite deposits, to NMG, for minimal upfront cost. What gives? The deal seems absurd at face value, but insiders with considerable equity in the company (12%), have promoted the deal, so there must be more to it. The only logical explanation is that insiders have been given assurances that mine capital costs will be covered by options other than seeing Mason shareholders diluted into oblivion at $0.50/share equity financing. For this key component of Quebec’s battery materials ecosystem, other options such as offtake agreements, government loan guarantees, etc, should be readily available. Today’s press release from NMG, is a testament to that. Mason shareholders need to be provided with these same assurances prior to the July vote.
The Mookster