NMG firms up Matawinie financing with $335m debt package

The Export Development Canada (EDC) and the Canada Infrastructure Bank (CIB) have committed the funding, which will support the construction, development and commissioning of the graphite project.

The financing package comprises a $290-million senior secured term loan and a $45-million cost overrun facility, providing the bulk of the project’s capital structure and underpinning its path to a final investment decision.

NMG said the long-tenor debt facilities offer competitive rates and flexible repayment terms, aligned with international environmental, social and governance standards.

CEO Eric Desaulniers described the commitment as a “defining milestone” for the project.

“. . . this commitment from EDC and CIB reflects the depth of Canadian public-finance expertise behind large, strategic infrastructure and critical minerals developments – and it validates the bankability of our project,” he commented in a statement.

The Phase 2 Matawinie mine has been designated a project of national interest by the Canadian government, aimed at strengthening domestic critical minerals supply chains and supporting allied economies.

Once developed, the project is expected to become the largest graphite mine in the G7, supplying material for battery, advanced manufacturing and energy applications.

NMG said the project was substantially de-risked, with detailed engineering about 80% complete, key permits secured and preparatory site works already under way. Agreements are also in place with the Atikamekw First Nation of Manawan and local stakeholders.

The project’s financing is underpinned by long-term offtake agreements covering about 75% of future production, including arrangements with the Government of Canada, Panasonic Energy and Traxys, providing revenue visibility.

Proceeds from the debt facilities will be used to fund construction, working capital requirements and transaction costs, with the cost overrun facility offering additional protection against potential budget increases.

NMG said it would proceed towards financial close and construction once conditions precedent had been met, while continuing discussions with strategic investors to finalise the equity component of the project financing.