Mason Graphite Sells NanoXplore Shares for Net Proceeds of $ 28.2M
MONTREAL, Quebec, Sept. 10, 2019 — Mason Graphite Inc. (“Mason Graphite” or “the Company”) (TSX.V: LLG; OTCQX: MGPHF) announces the sale, on September 9th, 2019, of its investment in NanoXplore Inc. (“NanoXplore”) (TSX-V: GRA; OTCQX: NNXPF).
As a result, the Company sold 22,188,333 common shares for a total net consideration of $ 28.2 million. These common shares, representing 18.3% of NanoXplore, were acquired through various private placements by NanoXplore at a total cost of $ 4.5 million. After this sale, Mason Graphite no longer holds any common shares of NanoXplore.
The proceeds from this sale represent one of the key elements of the Lac Guéret project’s construction financing structure currently being negotiated. This transaction is non-dilutive for the shareholders of the Company, which is one of the objectives of the ongoing financing. The funds raised are in addition to the $ 45 million raised through an equity private placement closed at the beginning of 2018, the vast majority of which has since been allocated to project execution expenditures. The funds will support further work of Lac Guéret project and the development of value-added products project, including materials for lithium-ion batteries as well as an increase in working capital. For the Lac Guéret project, all major equipment are already on the construction site and detailed engineering is now 75% completed while piloting is ongoing for the valued added products project.
The shares sold were acquired by Martinrea International Inc. (TSX: MRE; OTCQX: MRETF), now the principal shareholder of NanoXplore’s equity, Investissement Québec and the Caisse de dépôt et placement du Québec.
Benoît Gascon, President and CEO of Mason Graphite, commented: “Mason Graphite is proud to have contributed to the success of NanoXplore since the very beginning of the company in 2014 and this strategic relationship will endure. We look forward to supplying NanoXplore with our graphite from Lac Guéret. In addition, the high caliber and strategic nature of the entities acquiring this block of shares, allowing the future development of NanoXplore, must be highlighted.”
Mason Graphite does not currently intend to acquire, in the short or long term, securities or instruments of NanoXplore other than through the exercise of the warrants held by Mason Graphite.
An Early Warning Report relating to this press release has been filed on the System for Electronic Document Analysis and Review System (SEDAR) at www.sedar.com under NanoXplore’s Issuer Profile.
About Mason Graphite and the Lac Guéret Project
Mason Graphite is a Canadian mining and processing company focused on the development of its 100% owned Lac Guéret natural graphite deposit located in northeastern Québec. The Company is led by a highly experienced team that has over five decades of experience in graphite production, sales, and research and development. For more information, visit www.masongraphite.com.
Mason Graphite Inc. On Behalf of the Board
“Benoît Gascon, CPA, CA”, President & Chief Executive Officer
For more Information:
Simon Marcotte, CFA, Director Corporate Development at +1 (647) 801-7273 and at [email protected]
Head Office: 3030, boulevard Le Carrefour, bureau 600, Laval, Québec, H7T 2P5