TORONTO - Mason Resources Inc. (TSXV: LLG) (OTCQX: MGPHF) has entered into an agreement with Nouveau Monde Graphite Inc. (NYSE: NMG) (TSXV: NOU) to sell its Lac Guéret Property, which is slated for the development of the Uatnan Mining Project. The transaction will see Mason receive over 6 million NMG common shares and a cash payment upon the project's commercial production start.
The asset purchase agreement, dated January 21, 2024, stipulates that Mason will obtain 6,208,210 common shares of NMG, equating to a 143% premium based on the Lac Guéret Property's implied market value and 9.25% of NMG's pro forma issued and outstanding common shares. Additionally, Mason is set to receive $5M in cash once the Uatnan Mining Project commences commercial production.
Mason's shareholders are expected to benefit from this deal by becoming significant stakeholders in NMG at a time when the company is advancing rapidly. This strategic move provides Mason with exposure to NMG's commercial activities with leading battery and electric vehicle manufacturers, such as Panasonic (OTC:PCRFY) Energy Co. Ltd., and positions Mason to capitalize on the projected rise in graphite prices, particularly following recent export restrictions by China.
The transaction, which is subject to standard closing conditions, is anticipated to be finalized on or before January 31, 2024. Upon completion, it will supersede and terminate previous agreements between the two companies.
Nouveau Monde Graphite aims to establish a fully integrated source of carbon-neutral battery anode material in Québec, Canada, serving the lithium-ion and fuel cell markets. Mason, while divesting from the Lac Guéret Property, remains the largest shareholder of Black Swan Graphene Inc., focusing on graphene production.
The transaction's financial advisor is Paradigm Capital Inc., and legal affairs are managed by Davies Ward Phillips & Vineberg LLP. This move is seen as a significant step in strengthening Québec's position in the global graphite industry and advancing the sustainable energy revolution.
This article is based on a press release statement from Mason Resources Inc.
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