TradingCharts
1 year ago
MASON GRAPHITE INC.
Management's Discussion and Analysis
Three And Nine Months Ended March 31, 2023
May 29, 2023
The Joint Venture will be formed if NMG exercises its option and becomes the owner of a 51% interest in the Property.
The Joint Venture will be formed with the objective of further exploring the Property and, if deemed warranted by NMG
and Mason Graphite, of developing, constructing, and operating a mine on the Property or a part of it, and
commercializing the minerals derived therefrom. The Joint Venture will also have full and continuous access to NMG’s
Demonstration Plant and the expertise of NMG in order to support the commercialization of the graphite derived from
the Property.
Concurrently with the execution of the OJV Agreement, Mason Graphite and Nouveau Monde have completed the
private placement of 5.0 million common shares of the Company (the “Initial Shares”) to Nouveau Monde at a price of
$0.50 per Initial Share for gross proceeds to the Company of $2.5 million. The Company intends to use the net
proceeds from the sale of the Initial Shares to fund agreed expenses on the Lac Guéret property pursuant to the OJV
Agreement. The Initial Shares will be subject to a four-month hold period pursuant to applicable securities laws.
The gross proceeds from the Subscription Receipt Financing (collectively, the “Escrowed Funds”), less the reasonable
expenses of the Subscription Receipt Agent incurred in connection with the Subscription Receipt Financing, were held
in escrow pursuant to the terms of the Subscription Receipt Agreement and shall be released immediately prior to
completion of the Transaction.
On December 12, 2022, the Company announced that following discussions with certain of its significant shareholders
and other stakeholders, the board of directors of the Company (the "Board") has decided to increase the size of the
Board from six directors to seven directors, and to appoint Ms. Adree DeLazzer as an additional independent director of
the Company, effective following the Annual General and Special Meeting of Shareholders of the Company held
virtually on December 20, 2022.
B) INVESTMENT IN BLACK SWAN GRAPHENE
On July 21, 2021, the Company has announced the creation of Black Swan Graphene Inc. (“Black Swan Graphene”)
and the entering into of a definitive agreement whereby Mason Graphite has agreed, through Black Swan Graphene, to
purchase strategic assets related to patented graphene production technology from Thomas Swan & Co. Limited
(“Thomas Swan”), a leading UK-based specialty chemicals company (the “Transaction”). The consideration paid by
Black Swan Graphene to Thomas Swan for such assets was $7,706,200, comprised of £3 million and shares
representing 33.33% of Black Swan Graphene’s issued and outstanding shares. Upon the completion of the
Transaction, Mason Graphite also invested approximately $2.5 million in Black Swan Graphene for working capital
purposes.
In connection with the Transaction, Black Swan Graphene has acquired a license from Trinity College Dublin for the
production of exfoliated defect-free, non-oxidised 2-D materials in large quantities (the “TCD License”), which license
was previously held by Thomas Swan. In addition, Black Swan Graphene and Thomas Swan have entered into a
License Agreement and a Sub-License Agreement, pursuant to which Black Swan Graphene has granted Thomas
Swan a license to graphene processing technology for production of up to 1,000 tonnes per year and Black Swan
Graphene has sub-licensed the TCD License to Thomas Swan, respectively.
In addition to the assets related to the graphene processing technology and associated know-how sold to Black Swan
Graphene, Thomas Swan also contributes its exclusive production and commercialization expertise while providing
access to subject matter expertise, such as access to personnel and technical support, and deliverables from its
operation in Northern England pursuant to a Services Agreement entered into between Black Swan Graphene and
Thomas Swan. Black Swan Graphene aims to establish a large-scale commercial production facility in Québec,
Canada, in order to leverage the province’s competitive and green hydroelectricity, as well as the proximity of Mason
Graphite’s planned production sites. These factors are key and will accelerate the production and commercialization of
the graphene developed by Thomas Swan by integrating the supply chain and lowering production costs.
Upon the completion of the Transaction, Mason Graphite and Thomas Swan held 66.67% and 33.33%, respectively, of
the issued and outstanding shares of Black Swan Graphene. Pursuant to an agreement entered into simultaneously
with the Transaction, Mr. Fahad Al Tamimi, Chairman of Mason Graphite, acquired directly from Thomas Swan an 8%-
equity interest in Black Swan Graphene.
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https://masonresourcesinc.com/wp-content/uploads/2023/07/Mason-Q3-2023-MDA.pdf
IAmTopG
2 years ago
https://www.dw.com/en/chinese-graphite-dominance-threatens-electric-car-ambitions/a-60888876
Battery makers currently use a mixture of both natural and synthetic graphite in different ratios in their anodes. They, however, favor synthetic graphite because it's more consistent, has extremely low levels of impurities, its specifications can be easily controlled since it is manufactured and offers better performance.
But producing synthetic graphite is costlier and a more energy-intensive process, requiring temperatures as high as 3,000 degrees Celsius (5,432 degrees Fahrenheit). Manufacturing synthetic graphite in China is even worse given that most of the electricity there is generated from highly polluting coal.
Man-made graphite, as a result, is more vulnerable to soaring energy costs and power rationing. Experts say synthetic graphite production in China could also suffer from the country's pledge to go carbon-neutral by 2060, potentially making natural graphite, which requires less energy, more attractive to some battery producers.
tcm55
2 years ago
"The potential resources are greater, and the graphite content of the Lac Guéret ore is five times higher than that of Nouveau Monde Graphite's Matawinie mine in Saint-Michel-des-Saints"
And in China?
"Graphite is often a very underrepresented critical mineral in the lithium-ion battery," Miller said. "Especially, not enough attention is paid to the potential for supply deficit and to the potential for the graphite market itself to become structurally affected by demand from electric vehicles."
Graphite flake prices in China stood at $760 per ton in early February, up by 11.8% from January and up by 38.2% from a year ago, according to Rystad Energy's monthly price index.
>
Syrah's Vidalia plant, which would process graphite mined in Mozambique, would be the first US-based facility producing natural graphite anodes.
Canadian developer Nouveau Monde Graphite is also planning to set up a battery anode facility near Montreal in Canada.
https://www.dw.com/en/chinese-graphite-dominance-threatens-electric-car-ambitions/a-60888876
nowwhat2
3 years ago
By @Atachetatuque at CEO,ca
I have translated here an article by Hélène Baril published in "La Press +" published this morning which summarizes quite well the joint venture agreement between LLG and NMG via its subsidiary Black Swan Graphene.
Nouveau Monde Graphite and Mason Graphite, who each manage mining projects in Quebec on their own, have decided to pool their resources with the ambition of becoming the largest supplier of graphite to battery manufacturers in North America.
The agreement announced on Monday provides for an investment of 5 million by Nouveau Monde Graphite in the capital of Mason Graphite for a 51% stake in the Lac Guéret graphite mine project, located 285 kilometers from Baie-Comeau.
Nouveau Monde Graphite has also committed to do 10 million worth of work in the joint venture.
“It will become a very big project,” said Éric Desaulniers, president and CEO of Nouveau Monde Graphite, which is already developing a graphite mine and a demonstration plant in Saint-Michel-des-Saints.
It is a question of a production of 250,000 tons per year of graphite, "at least", specifies Éric Desaulniers, that is to say the sufficient size to compete with the Chinese producers, who currently reign on this market.
Nouveau Monde Graphite is more advanced in the development of its project, but the Mason Graphite deposit is richer. The potential resources are greater, and the graphite content of the Lac Guéret ore is five times higher than that of Nouveau Monde Graphite's Matawinie mine in Saint-Michel-des-Saints.
Ugo Lapointe, co-spokesperson for the Coalition Québec Better Mine, believes that the Lac Guéret project should be prioritized because it is more interesting and less controversial than that of Saint-Michel-des-Saints.
The transaction "can be excellent news if Nouveau Monde Graphite and Quebec decide to prioritize the development of the Lac Guéret mining project, which enjoys great social acceptability and which could produce twice as much graphite while generating three times less tailings in the environment than the Matawinie project," he commented.
OPPOSITION
Nouveau Monde Graphite faces opposition from residents of Saint-Michel-des-Saints, particularly vacationers who have chosen the region for its tranquility. The Bureau d'audiences publiques sur l'environnement had expressed reservations about the mine project and recommended additional studies to clarify several aspects of the planned operations.
Nouveau Monde Graphite, which has already spent 100 million on its Saint-Michel-des-Saints project, intends to continue its' development in concert with that of Lac Guéret.
The Minister of the Economy, Pierre Fitzgibbon, said he believed that the two projects are better than one. “By joining the forces of the two most advanced projects in North America, both located in Quebec, we are solidifying our battery value chain,” he said in a press release.
No graphite supply agreement has yet been concluded by Nouveau Monde Graphite with battery cell manufacturers. Negotiations are underway with several of them who want to diversify their sources of supply, indicated its president and founder during an interview with La Presse.
The creation of a joint venture majority controlled by Nouveau Monde Graphite must be approved by the shareholders of Mason Graphite. Nouveau Monde Graphite will pay $0.50 per share for its equity stake, representing a 10% premium to the closing price of Mason Graphite common stock on May 13, 2022.
Mason Graphite shares jumped 10.5 cents after the deal was announced to 56 cents. Nouveau Monde Graphite stock ended the day at $6.74, up 26 cents, or 4%. Over the past year, NMG's stock has fluctuated between a low of $6.36 and a high of $19.18.
https://plus.lapresse.ca/screens/7279cc62-9d06-40b3-b366-bd52d14376c8__7C___0.html?utm_content=email&utm_source=lpp&utm_medium=referral&utm_campaign=internal+share