As part of the deal, NMG will sign an option and joint venture (JV) agreement with Mason and concurrently make an equity investment of $3.8m (C$5m) in Mason.
To form the JV, NMG is required to spend at least $7.74m (C$10m) on the Lac Guéret property and complete an updated feasibility study of the project based on a minimum of 250,000tpa of graphite concentrate.
Upon exercising the option and JV formation, NMG and Mason will respectively own 51% and 49% stakes in the JV. NMG will serve as the operator of the venture.
Located 285km north of Baie-Comeau, the Lac Guéret property comprises 74 claims and covers an area of 4,000ha.
The property is estimated to have a total proven and probable reserve of 4.7 million tonnes grading 27.8% carbon graphite.
NMG founder and CEO Eric Desaulniers said: “This transaction has the potential to strengthen our phased development approach and provide us with significant volumes, therefore indicating to our large prospective tier-1 customers that we have a robust and realistic growth strategy and the ambition of being their preferred supplier for the generation to come.”
The JV will have complete access to NMG’s operational Phase-1 natural graphite flake concentrator plant in Saint-Michel-des-Saints, Québec, and commercialise its graphite.
Additionally, NMG and Mason’s subsidiary Black Swan Graphene signed a non-binding letter of intent to implement the latter’s graphene processing technology in NMG’s demonstration plant.
This allows for the establishment of a fully integrated facility from graphite ore to graphene-finished products.