NextSource Materials Signs Mandate Letter for US$91 Million Debt...

NextSource Materials Signs Mandate Letter for US$91 Million Debt Facility with International Finance Corporation

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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.