Mason Resources Inc (TSX-V:LLG, OTCQX:MGPHF) announced it has signed an asset purchase agreement with Nouveau Monde Graphite (TSX-V:NOU) (NMG) for the sale of the Lac Guéret property.
Located in Quebec, Lac Guéret comprises 74 map-designated claims totaling 3,999.52 hectares containing high-quality natural graphite.
The agreement gives Mason shareholders exposure to the Uatnan mining project, which covers Mason Graphite’s Lac Guéret graphite deposit. A preliminary economic assessment puts targeted production at approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine, making it one of the world’s largest graphite projects in development, according to NMG.
As part of the deal, Mason will receive 6,208,210 common shares of NMG, representing a 143% premium on the implied market value of Lac Guéret Nouveau Monde, along with 9.25% of pro forma issued and outstanding common shares of NMG. Additionally, Mason will be paid $5 million in cash once the Uatnan Mining Project starts commercial production.
The move is seen as strategically positioning Mason as one of NMG's largest shareholders, aligning with NMG's active discussions with major battery and electric vehicle (EV) manufacturers. This not only confirms the growing demand for graphite but also strengthens Mason's exposure to the graphite sector and eliminates future financing requirements related to the Uatnan Mining Project.
Fahad Al-Tamimi, chairman of Mason, told investors that the deal helps to “pave the way” for a thriving graphite industry in Quebec.
“From the outset, my unwavering belief in Québec's potential for the graphite sector and the vision of becoming a global leader in clean energy, reducing CO2 emissions, and electrify its transportation, buildings and businesses has been resolute,” Al-Tamimi said in a statement.
“This marks a pivotal advancement toward its exciting and promising development which will benefit the economy and the people of Québec."
Eric Desaulniers, CEO of NMG, added that the team is “confident in the current and future demand for ethically sourced and environmentally produced graphite-based anode material.”
The acquisition, subject to standard closing conditions, is anticipated to be finalized by January 31, 2024, superseding previous agreements between Mason and NMG.