Nouveau Monde raises C$10m for Matawinie development
Nouveau Monde Graphite has arranged a non-brokered private placement with Pallinghurst Graphite that will raise C$10.3 million for continued work on the Matawinie graphite development project 150 km north of Montreal, Quebec. Pallinghurst has subscribed to purchase approximately 43.8 million common shares priced at C$0.235 per share.
Nouveau Monde said it intends to close an earlier, C$11.7 million institutional placement by the end of May 2019. Between the two placements, the company will raise about C$22 million.
Work at the Matawinie project is advancing as the company focuses on community relations, including the signing of a framework agreement with the Conseil des Atikamekw de Manawan and the Conseil de la Nation Atikamekw, as well as an agreement in principle with the municipality of Saint-Michel-des-Saints (where Nouveau Monde has offices).
Nouveau Monde has completed the Matawinie feasibility study and is operating an open pit mine with an fleet of electric shovel and trucks. The flake graphite demonstration plant at the mine site is working, and the company has outlined a significant increase for the West zone of the Tony Block. It has also signed a collaboration agreement with Hydro-Quebec.
With a probable reserve of 59.8 million tonnes grading 4.35% graphitic carbon, the Matawinie mine has a 25.5-year life.
(This article first appeared in the Canadian Mining Journal)