Hay Spid , if NextSource Materials can sign a new debt facility for US $91 million WKT will be able to finance up US $40 million and pay out the existing debt and expand to 60,000 TPA, you worry about chicken little $2 million ? go bark at your own dud stocks.
NextSource Materials Signs Mandate Letter for US$91 Million Debt Facility with International Finance Corporation
Provided by Accesswire
Jun 13, 2024 9:00pm TORONTO, ON / ACCESSWIRE / June 13, 2024 / NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or "the Company") is pleased to announce the signing of a Mandate Letter with International Finance Corporation ("IFC"), the private sector investment arm of the World Bank Group, to lead a senior debt facility totaling US$91 million (the "IFC Debt Facility") to fund an expansion of the Molo Graphite Mine (the "Molo mine") in southern Madagascar.
In December 2023, the Company released the results of a Technical Feasibility Study (the "FS") that confirmed the positive economics of a large-scale expansion of the Molo mine and processing facility from its current production capacity of 17,000 tonnes per annum (tpa) to 150,000 tpa of SuperFlake® graphite concentrate. The FS estimated a capital cost of US$161.7 million (including contingency) plus working capital of US$25.2 million, resulting in a pre-tax NPV8 (using an 8% discount rate) of US$424.1 million and a pre-tax Internal Rate of Return (IRR) of 31.1%, and a NPV8 of US$370.0 and IRR of 29.0% on a post-tax basis.
IFC has provided indicative financial terms to lead the coordination of the overall debt syndicate with other select commercial banks and development finance institutions. The IFC Debt Facility would fund approximately 50% of the capital costs and working capital requirements for the mine expansion to 150,000 tpa.
Craig Scherba, P.Geo., President, and CEO of NextSource commented: "We are delighted to announce the signing of a Mandate Letter with IFC, marking a significant milestone in our journey to expand the Molo Graphite Mine and support the diversification of global supply chains for critical battery materials. This partnership underscores the confidence placed in NextSource's Molo mine expansion by one of the world's leading development finance institutions. With IFC's support, we are poised to unlock Molo's vast potential and further contribute to long term sustainable development in Madagascar."
IFC's mandate to provide financing to NextSource is subject to satisfactory technical, social, legal and environmental due diligence, documentation and execution of acceptable terms, obtaining final credit, and regulatory and board approvals. Due diligence has commenced and is anticipated to complete in Q1 2025. About NextSource Materials Inc.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.
The Company's Molo Graphite Mine in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo Graphite Mine has begun production, with Phase 1 mine operations currently undergoing ramp-up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
The Company is also developing a significant downstream graphite value-add business through the staged rollout of Battery Anode Facilities capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner. The Company intends to build its first Battery Anode Facility in Mauritius.
NextSource Materials is listed on the Toronto Stock Exchange under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".
The FS was filed on under the Company's profile on SEDAR+ at www.sedarplus.ca and was posted on NextSource's website at
WKT Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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