NextSource and Vision Blue have executed definitive documentation in respect of an initial private placement and are prepared to close the transaction upon receipt of the required regulatory approval. 

The company does not expect any material delays in respect of the approval process, which is currently in progress and is normal course for a transaction of this nature.    

The proceeds of this initial private placement will allow the company to immediately commence the construction phase of the Molo mine through the ordering of longer lead items for the processing plant and to fast track the completion of two technical studies.

The studies will be commissioned in order to confirm the capital and operating costs for the next phase of mine expansion, and to construct a stand-alone, value-added graphite plant to produce spherical and purified graphite (SPG) for lithium-ion batteries in electric vehicles.

The initial private placement is the first part of the previously announced total financing package of US$29.5 million committed by Vision Blue the total financing package includes a US$6.1 million equity private placement of common shares; a US$12.4 million equity private placement of units to close following shareholder approval; and US$11.0 million in non-dilutive royalty financing, and will be used to fully fund the construction of the company’s Molo graphite mine in Madagascar.