In consideration for the sale of the Lac Guéret Property, Mason will receive 6,208,210 common shares of NMG, representing a 143% premium on the implied market value of the Lac Guéret Property and 9.25% of the pro forma issued and outstanding common shares of NMG, to be issued to Mason upon the closing of the transaction, and an additional payment of
Benefits to Mason Shareholders
- Provides opportunity to become one of NMG's largest shareholders at an opportune time given the rapid progress of NMG, strategically positioning Mason for future gains;
- Provides exposure to NMG's active commercial discussions with tier-1 battery and electric vehicle manufacturers, including
Panasonic Energy Co. Ltd. , a wholly owned subsidiary of Panasonic Holdings Corporation (TYO: 6752), which not only confirm the strong projected demand by battery materials analysts for graphite, but are likely to support the establishment of a globally relevant graphite industry in the Province ofQuébec ; - Provides diversification and mitigates long-term development risks associated with the Uatnan Mining Project, while retaining equivalent exposure to the graphite sector;
- Unlocks near-term value with attractive premium: 143%1 premium received in consideration on the implied market value of Lac Guéret Property, based on 10-day volume weighted average price ("VWAP");
- Enhances exposure to the anticipated near-term increase in graphite prices, especially in light of recent Chinese restrictions announced on graphite material exports, with equity ownership of a near-term producer;
- Eliminates future financing requirements related to the Uatnan Mining Project, avoiding eventual equity dilution;
- Eliminates care and maintenance costs related to the Lac Guéret Property, resulting in further direct and short-term financial benefits; and
- Reinforces NMG's fully vertically integrated production model in
North America , further strengthening Mason's strategic positioning.
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Arne H Frandsen, Chair of NMG, declared: "With its very large, high-quality natural graphite deposit, the acquisition of the Lac Guéret deposit represents a strategically important move by NMG. This addition of a world-class asset to NMG's portfolio of resources, underpins the Company's growth prospects and commercial attractiveness. It also puts us in a unique position in the global battery materials space. Our leadership and strong technical teams are looking forward to the smart further development of the Lac Guéret asset, fully synchronized with NMG's current execution plans. We also warmly welcome Mason as a shareholder of NMG as we build a pioneering – and possibly the largest! – integrated natural graphite production in the
Under the terms of the APA, NMG has agreed to acquire 100% of Mason's Lac Guéret Property, which consists among other things of 74 map-designated claims totalling 3,999.52 hectares. The consideration for the acquisition of the Lac Guéret Property is payable in 6,208,210 common shares of NMG, representing 9.25% of the pro forma issued and outstanding shares of NMG, to be issued to Mason upon the closing of the transaction and a subsequent payment of
Closing of the transaction is subject to standard closing conditions and is expected to occur on or before
For more information: www.NMG.com.
For more information: www.masonresourcesinc.com and www.blackswangraphene.com.
Neither
The information contained herein contains "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Forward-looking statements or forward-looking information relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements" or "forward-looking information". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the completion of the transaction with NMG, risks related to Mason's holding of the NMG shares, risks related to the development of NMG's projects, risks related to Black Swan's business, risk related to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with the industry; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in development activities or the completion of feasibility studies; the uncertainty of profitability; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of feasibility studies, and the possibility that future results will not be consistent with Mason's expectations; risks related to commodity prices fluctuations; and other risks and uncertainties related to Mason's prospects, properties and business detailed elsewhere in Mason's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and Mason does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from Mason's expectations or projections.
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