Mason Graphite Inc (TSX-V:LLG, OTCQX:MGPHF) announced that two leading Institutional independent proxy voting advisory firms have recommended Mason shareholders approve the company’s joint venture agreement with Nouveau Monde Graphite (TSX-V:NOU) Inc (NMG).
Institutional Shareholder Services (ISS) and Glass Lewis each recommended that Mason Graphite shareholders vote for the option and joint venture agreement and the change of business.
The agreement is intended to leverage NMG’s expertise and commercialization capabilities to allow Mason Graphite to realize the full potential of its Lac Guéret property by increasing its scope of production to a minimum of 250,000 tonnes per year of graphite concentrate.
READ: Mason Graphite inks joint venture with Nouveau Monde Graphite to develop Lac Guéret property in Quebec
The venture will have full access to NMG’s Phase-1 natural graphite flake concentrator plant currently in operation in Saint-Michel-des-Saints, Québec in order to accelerate the qualification and commercialization of its graphite, the companies said. To date, NMG has invested approximately C$30 million in the demonstration plant;
“The joint venture arrangement makes strategic sense as it enables the company to act on the new company business model, while minimizing the costs associated with exploration and further development,” ISS wrote. “The company appears to have conducted a lengthy strategic alternative review and in light of there being no significant governance concerns, shareholder approval of this resolution is warranted.”
NMG is investing C$10 million in the Lac Guéret project prior to the formation of the joint venture, $2.5 million in equity of Mason Graphite at C$0.50 per share after shareholders’ approval and another $2.5M in equity at the formation of the joint venture.
As of Monday, the total votes cast represent 12.98% of the total shares issued and outstanding, and both resolutions are being supported by 99.7% of the votes cast.
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