Nouveau Monde and General Motors sign offtake agreement, $150M investment

Nouveau Monde (NMG) and General Motors Holdings, a wholly owned subsidiary of General Motors (GM), have agreed to sign a supply agreement upon closing of the Tranche 1 Investment, in which NMG will provide 18,000 tons per annum of its expected Phase-2 active anode material output to GM upon reaching full production for an initial term of six years. In complement to the Supply Agreement, NMG and GM entered into a subscription agreement in which GM commits an aggregate $150M equity investment in NMG, subject to certain closing conditions, to develop what is projected to be the first fully integrated natural graphite active anode material project of its kind in North America. GM will make an initial $25M equity investment in NMG to support the advancement of NMG’s Phase-2 operations – the Matawinie Mine and the Becancour Battery Material Plant – in line with GM’s battery manufacturer’s specifications. GM also commits to subscribe for a further $125M of equity upon the successful completion of conditions precedent and a positive final investment decision. The Supply Agreement provides for supply of a volume of 18,000 tpa, once NMG reaches full production, of active anode material by NMG to GM for an initial 6-year term from the commencement of the company’s Phase-2 production. In connection with the Tranche 1 Investment, GM has agreed to subscribe for 12.5M common shares in the capital of NMG and 12.5M common share purchase warrants for aggregate proceeds of $25M. NMG will use the net proceeds from the Tranche 1 Investment for the development of the Phase-2 Matawinie Mine and Becancour Battery Material Plant.