NextSource Materials has entered into a binding agreement with Vision Blue Resources, a private investment company created and led by Sir Mick Davis, former CEO of Xstrata Plc, to provide a financing package for total gross proceeds of US$29.5 million.
The proceeds of the Financing Package will be used to bring the Company’s Molo graphite mine in Madagascar into full production, with targeted completion in the first half of 2022.
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“This investment in NextSource underlines our belief that the massive secular change in demand for critical battery material resources is not being met by an appropriate supply side response, largely as a result of capital constraints.
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“Vision Blue’s investment into NextSource is aligned with our strategy to assemble a portfolio of strategically significant investments in high-quality, responsibly managed and proven battery material mining assets.
“We view NextSource’s Molo project as one of the best graphite assets globally and well-positioned for significant upside in growth and value due to the impressive strategic partnerships they have forged.
“Our initial investment is just the first in unlocking Molo’s potential and it is our intention to help create a major battery materials producer on a global scale.
“We are pleased to support its growth to realise its value for all investors and stakeholders.”
Craig Scherba, President and CEO of NextSource comments:
“We are delighted that Sir Mick has chosen NextSource and our Molo project as Vision Blue’s flagship graphite asset. Vision Blue’s investment will enable us to move toward full production by mid-2022, and to accelerate our strategic battery anode development plans with our industry-leading partners.
“Vision Blue’s involvement as our major strategic shareholder, coupled with the potential of our Molo graphite project, firmly positions NextSource to quickly become a significant market disruptor in the burgeoning battery materials market.”