-- Nouveau Monde Graphite (NOU.TO) after trade Thursday said it will raise a $297 million in a private placement of shares and concurrent bought-deal share offering.
The company has secured $213 million in the private placement, with commitments of US$82 million from Canada Growth Fund, US$61 million from the Quebec government through Investissement Quebec, and US$70 million from Eni (E), subject to shareholder approval, the company said
The company is raising an additional $84 million in bought-deal share offering.
Proceeds will be used for the design, engineering and construction of the phase 2 expansion of its Matawinie Mine in Quebec ahead of a final investment decision (FID) for the project, as well as general and administrative expenses and working capital, the company said.
"Equity financing, together with previously announced US$335 million project debt facilities commitment, is expected to fully secure the funds required for the Phase 2 Matawinie Mine and advance the project to FID," it added.
The private placement is expected to close around May 15, just before the shares from the public offering are issued, according to the statement.
The company's shares closed up $0.07 to $3.26 on the Toronto Stock Exchange.