Mr. Benoit Gascon of Mason Graphite reports
MASON GRAPHITE SELLS NANOXPLORE SHARES FOR NET PROCEEDS OF $ 28.2M
Mason Graphite Inc. sold, on Sept. 9, 2019, its investment in Nanoxplore Inc.
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 per cent 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 Gueret 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 continuing 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 Gueret 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 Gueret project, all major equipment are already on the construction site and detailed engineering is now 75 per cent completed while piloting is continuing for the valued-added products project.
The shares sold were acquired by Martinrea International Inc., now the principal shareholder of Nanoxplore's equity, Investissement Quebec and the Caisse de depot et placement du Quebec.
Benoit Gascon, president and chief executive officer 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 Gueret. In addition, the high calibre 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 SEDAR under Nanoxplore's issuer profile.
About Mason Graphite Inc. and the Lac Gueret project
Mason Graphite is a Canadian mining and processing company focused on the development of its 100-per-cent-owned Lac Gueret natural graphite deposit located in northeastern Quebec. The company is led by a highly experienced team that has over five decades of experience in graphite production, sales, and research and development.
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