-- Nouveau Monde Graphite (NOU.V) late on Thursday received a US$82 million investment to support the company's development of a Canadian graphite supply chain.
Canada Growth Fund said it has entered into a definitive agreement with respect to an $82 million private placement with Nouveau Monde, which is developing the Matawinie mine at Saint-Michel-des-Saints and a Becancour-based refining facility.
The transaction will be completed alongside Eni and Investissement Quebec, which committed $70 million and $61 million, respectively.
The transaction forms part of a fully funded $633 million financing package, composed of 53% debt and 47% equity. The private placement will be complemented by a concurrent bought deal public offering of subscription receipts for gross proceeds of $84 million, collectively completing the equity component of the financing package for the Matawinie mine.
The financing package also includes senior debt financing of $335 million by Export Development Canada and the Canada Infrastructure Bank.
"Through this transaction, we are supporting a key player in global production of natural graphite, one of Canada's six priority critical minerals," said Yannick Beaudoin, President and Chief Executive Officer of Canada Growth Fund Investment Management.
A final investment decision on the Matawinie mine and Nouveau Monde shareholder approval are expected in May, to be followed by financial close.