The Canadian Growth Fund has entered into a definitive agreement for a US$82 million (CAD113 million) private placement with… New World Graphitea Quebec-based graphite mining and refining company, is developing the largest graphite mining operation in North America. The company is developing an integrated supply chain for Canadian graphite anchored by the Matawinie mine in Saint-Michel-des-Saints and a refining facility based in Becancour.
The Federal Investment Fund announced the deal alongside commitments from Eni SpA and Investissement Québec, which pledged approximately US$70 million and US$61 million, respectively. The private placement will complement a simultaneous public offering of subscription receipts for an aggregate value of approximately $84 million.
This transaction supports the development of Canada’s critical minerals value chain and positions NMG as a strategic supplier to North American markets that require graphite for clean technologies, advanced manufacturing and national security applications. The Matawhini mine is expected to become the largest graphite mining operation in North America.
The Canada Growth Fund targets investments that strengthen critical supply chains and capitalize on Canada’s natural resource potential. The federal fund identifies natural graphite as one of Canada’s six priority minerals that require strategic development support.
“One of CGF’s primary strategic objectives is to leverage Canada’s natural resource potential and strengthen critical supply chains,” said Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management. “With this transaction, we are supporting a major player in the global production of natural graphite, one of Canada’s six priority minerals.”
Beaudoin stressed Canada’s competitive advantages in resource development along with high environmental standards. This investment enables NMG to promote development while maintaining responsible mining practices.
Eric DeSaulnier, founder and CEO of NMG, praised the Canadian Growth Fund’s flexible mandate and experienced investment team for accelerating the company’s development over the past year. Renewed support from a strategic federal investor enhances the company’s ability to attract additional private capital while reducing project development risks.
“Thanks to its flexible and agile mandate as well as its experienced investment team, CGF has enabled NMG to accelerate its development over the past year,” said Eric Desaulnier, Founder, President and CEO of NMG. “The renewed support from a credible strategic investor like CGF strengthens our ability to attract private capital and reduce project risk.” “This transaction represents an important step forward in the development of our flagship Mataweeni mine and its integrated graphite value chain.”
The transaction forms part of a fully funded financing package of US$633 million consisting of approximately 53% debt and 47% equity. Export Development Canada and the Infrastructure Bank of Canada are providing $335 million in senior debt financing to complement the financing structure.
The equity financing combines a concurrent public offering of approximately $84 million with private placement investments totaling approximately $213 million. The Canadian Growth Fund leads the private placement with US$82 million, followed by Eni with US$70 million and Investments Quebec with US$61 million.
Matawinie Mine’s final investment decision and NMG shareholder approval are expected in May 2026, with financial close expected shortly thereafter. The schedule enables the company to develop construction and commissioning activities that support commercial production goals.
The Canadian Growth Fund previously announced a C$35.6 million private placement with NMG in December 2024, representing the federal fund’s first investment in critical minerals development in Canada. The expanded commitment demonstrates continued confidence in NMG’s integrated business model and market position.
The $15 billion Canada Growth Fund operates as an independent investment vehicle designed to attract private capital to build Canada’s clean economy. The fund uses investment vehicles that absorb some of the risks to stimulate private investment in low-carbon projects, technologies, companies and supply chains.
Budget 2023 has appointed PSP Investments, through a wholly-owned subsidiary, to act as asset manager for the Canada Growth Fund. Canada Growth Fund Investment Management acts as an independent and exclusive asset manager responsible for investment decisions and portfolio management.
Nouveau Monde Graphite develops advanced mining and processing processes targeting advanced, carbon-neutral graphite materials for global markets. The company’s operations in Quebec create a fully integrated value chain from graphite ore to processing that serves the energy, high-tech and manufacturing industries.
The company maintains recognized ESG standards and builds partnerships with major customers to establish long-term supply relationships. NMG positions itself as a strategic supplier of advanced materials to specialty manufacturers while promoting sustainability, innovation and the supply chain.
More information is available at www.NMG.com and www.cgf-fcc.ca
Source link
