Nouveau Monde Graphite (NMG) has closed a private placement of $50m, raised from Mitsui, Pallinghurst Bond and Investissement Québec.

Through the private placement of unsecured convertible notes, Mitsui subscribed for a $25m convertible note. Pallinghurst and IQ each subscribed for $12.5m convertible notes.

Nouveau said the convertible notes are subject to a four-month hold period, and one day expiring on 9 March 2023.

Proceeds from the private placement will be used to optimise the feasibility study on Phase II commercial integrated operations for the Matawinie open-pit graphite mine and battery material plant in Becancour, Quebec.

Nouveau Monde Graphite is developing a fully integrated source of carbon-neutral battery anode material in Québec to meet the growing demand from the lithium-ion and fuel cell markets.

The project includes the Matawinie Mine, a graphite deposit and beneficiation plant in Saint-Michel-des-Saints (SMDS), and the Bécancour Battery Material Plant for the secondary transformation of graphite concentrates into high-purity, battery-grade material.

Under phase I of the project, NMG invested in piloting and demonstration plants for both the beneficiation and secondary transformation.

In a press statement, NMG earlier said: “NMG is designing a mine of the future, targeted to be all-electric, complemented by clean advanced beneficiation facilities in order to provide battery and EV manufacturers with responsibly extracted, environmentally transformed, and locally sourced green anode material.”

Located in Saint-Michel-des-Saints, 150km north of Montréal, Québec, the Matawinie graphite property is estimated to contain measured and indicated resources of 130.3 million tonnes grading 4.28% graphitic carbon (Cg) and containing 5.55 million tonnes of Cg.