Canada will buy 30,000tpa of graphite on a take-or-pay basis for seven years. Credit: RHJPhotos/Shutterstock.com.

Nouveau Monde Graphite (NMG) has signed a revised binding long-form term sheet with the Canadian Government detailing commercial terms for the supply, storage and resale of graphite concentrate from its phase two Matawinie Mine in Québec.

Canada will purchase 30,000 tonnes per annum (tpa) of flake graphite concentrate on a take-or-pay basis over seven years.

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The pricing is structured on a fixed North American price, with annual adjustments based on inflation.

NMG retains the right to resell these volumes, sharing any upside revenue above the fixed price equally with Canada.

The agreement facilitates progress towards finalising transaction agreements, pending government approvals and a positive final investment decision (FID) for the Matawinie Mine.

NMG’s project financing is supported by a $335m (C$464.01m) debt commitment from Export Development Canada and the Canada Infrastructure Bank.

This financing package supports NMG’s strategy to secure funding for the mine’s development.

In addition to the Canadian arrangement, NMG has offtake agreements with Panasonic Energy and Traxys North America, covering more than 70% of planned production from the phase two Matawinie Mine.

The project is backed by detailed engineering, preparatory work, and agreements with the Atikamekw First Nation and local community stakeholders.

NMG founder, president and CEO Eric Desaulniers said: “This updated framework with the Government of Canada is another key step in reinforcing the bankability of our Phase‑2 Matawinie Mine and our positioning among the G7 and allied countries as a local, dependable and responsible graphite source.

“The contemplated supply, storage and marketing structure is designed to support Canada’s strategic ambitions while preserving commercial agility for NMG as we advance toward definitive agreements and an FID.”

Last month, NMG announced that it is advancing preparations for the construction of its phase two Matawinie Mine, awarding major construction contracts that cover more than half of the project’s capital expenditure.