Resource News

NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) ("NextSource" or "the Company") is pleased to announce the results of a Preliminary Economic Assessment ("PEA") for an enhanced Phase 2 expansion of its 100%-owned Molo Graphite Mine Project in southern Madagascar

The PEA considered an enhanced Phase 2 expansion consisting of a stand-alone processing plant with a production capacity of 150,000 tonnes per annum ("tpa") of flake graphite concentrate over a 26-year life of mine ("LOM"). The PEA projects that the capital costs to construct 150,000 tpa of processing capacity would be US$155.8 million with a pre-tax NPV utilizing an 8% discount rate of US$929.6 million and a pre-tax IRR of 41.1%.

The PEA assumed the Phase 2 processing plant will be built adjacent to the 17,000 tpa Phase 1 processing plant, currently under construction.

Craig Scherba, P.Geo., President and CEO of NextSource commented,

"We are very pleased the PEA defines the strong financial returns of a larger scale operation and significant scalability of our project as market demand for flake graphite for use in electric vehicle batteries is rising. A Phase 2 expansion of this magnitude will position NextSource as a major global supplier and will underpin our vertical integration strategy to construct our own battery anode facility in due course, enabling direct supply to the electric vehicle battery market."

The PEA was prepared by Erudite Strategies Ltd. ("Erudite") of South Africa, an independent engineering and consulting firm specializing in the mining and processing of commodities and battery materials.

The Company cautions that the PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability and there is no certainty that the PEA will be realized.

PEA RESULTS SUMMARY

The following summary highlights the financial metrics provided in the PEA:

Description

Preliminary Economic Assessment

(150k tpa)

Economic Highlights
Pre-tax Net Present Value ("NPV") (8% discount rate) (1)(2)US$929.6 million
Post-tax and royalty NPV (8% discount rate) (1)(2)(3)US$612.6 million
Pre-tax Internal Rate of Return ("IRR") (1)(2)(3)(4)41.1%
Post-tax and royalty IRR (1)(2)(3)(4)32.0%
Life of Mine ("LOM")26 years
Annual average production of SuperFlake® graphite concentrate(5)(6)150,000 tonnes
Payback (Pre-tax) (1)(2)(3)(4)3.1 years
Payback (Post-tax and royalty) (1)(2)(3)(4)3.7 years
Capital cost ("Capex") (including a contingency of $31.96 million)US$155.8 million
Operating Costs FOB ("Opex") (per tonne of concentrate following ramp-up) (7)US$479.03
Average sale price of SuperFlake® concentrate (US$/tonne) (8)US$1,231
Operational Highlights
Average material mined per annum over LOM2,532,345
Average Head Grade6.16%
Concentrate purity (Cg) of finished product97%
Average Stripping ratio over LOM0.8:1
Average carbon recovery88.30%

(1) Assumes Project is financed with 100% equity. Unless otherwise noted, all monetary figures presented throughout this press release are expressed in US dollars (USD).
(2) CAPEX includes process equipment, civil & infrastructure, mining, buildings, electrical infrastructure, project & construction services. Values shown are based on real graphite sales pricing.
(3) Assumes 5% revenue and 1.5% NSR royalty payments.
(4) Assumes no inflationary adjustments in sales price or operating costs.
(5) Assumes all mineralized material from the Company's 2019 Feasibility Study, including ore from the Measured, Indicated and Inferred Mineral Resource categories, are sent to the treatment plant.
(6) Assumes a cut-off grade of 4.5% carbon has been applied, with all material below this cut-off grade treated as waste.
(7) Assumes all concentrate will be sold on a FOB basis at the Port of Ehoala, Madagascar.
(8) Assumes a 2% increase in the sales price reported in the Company's 2019 Feasibility Study (i.e. $1208/tonne), based on current market prices provided by UK-based commodity price reporting agencies Benchmark Minerals Intelligence and Fastmarkets.

CAPEX SUMMARY

Estimate Summary

Cost

%

Mechanical equipmentUS$24.0 million

15%

Structural steelUS$2.6 million

2%

Piping and valvesUS$2.1 million

1%

Freight and transportUS$6.6 million

4%

Electrical and instrumentationUS$7.9 million

5%

Sub-total supply itemsUS$43.2 million

28%

Engineering and managementUS$14.4 million

9%

Civil constructionUS$24.5 million

16%

InfrastructureUS$36.2 million

23%

Mechanical erectionUS$0.1 million

0%

Preliminary and generalUS$4.7 million

3%

Electrical erectionUS$0.8 million

0%

Sub-total non-supply itemsUS$80.7 million

52%

ContingencyUS$32.0 million

21%

Total Estimated CAPEXUS$155.8 million

100%

OPEX SUMMARY

Based on discussions with off takers, their preference is to purchase Molo graphite concentrate at the local Madagascar port at freight on board (FOB) China prices. As such, Operating costs ("OPEX") include the all-in FOB cost to ship the graphite concentrate to the local port of Ehoala.

Estimate Summary

Cost

Mining (US$/tonne)

$145.88

Processing (US$/tonne)

$190.15

Transport to Port of Fort Dauphin (US$/tonne)

$133.00

General and admin (US$/tonne)

$10.00

Total OPEX

$479.03

MINERAL RESOURCES

The Molo project hosts the following mineral resources and remains open along strike and to depth:

  • Measured mineral resource of 23.62 MT grading 6.32% C.
  • Indicated mineral resource of 76.75 MT grading 6.25% C.
  • Inferred mineral resource of 40.91 MT at 5.78% C.
Classification

Material Type

Tonnes

%C (Carbon)

Graphite

(Tonnes)

Measured"Low Grade"

13 048 373

4.64

605 082

Measured"High Grade"

10 573 137

8.4

887 835

Total Measured

23 621 510

6.32

1 492 916

Indicated"Low Grade"

39 539 403

4.73

1 871 075

Indicated"High Grade"

37 206 550

7.86

2 925 266

Total Indicated

76 745 953

6.25

4 796 341

Measured + Indicated"Low Grade"

52 587 776

4.71

2 476 157

Measured + Indicated"High Grade"

47 779 687

7.98

3 813 101

Total Measured + Indicated

100 367 464

6.27

6 289 257

Inferred"Low Grade"

24 233 267

4.46

1 080 677

Inferred"High Grade"

16 681 453

7.70

1 285 039

Total Inferred

40 914 721

5.78

2 365 716

C% = carbon percentage ; Graphite Tonnes = tonnes of graphite concentrate

(1) Mineral Resources are classified according to the Canadian Institute of Mining definitions.
(2) Mineral Resources are reported Inclusive of Mineral Reserves.
(3) "Low Grade" Resources are stated at a cut-off grade of 2% C.
(4) "High grade" Resources are stated at a cut-off grade of 4% C.
(5) Eastern and Western high-grade assays are capped at 15% C.
(6) A relative density of 2.36 tonnes per cubic metre (t/m3) was assigned to the mineralized zones for the mineral resource tonnage estimation.
(7) The effective date of the Mineral Resource tabulation above is August 14, 2014.
(8) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

METALLURGY & PRICING

The PEA is based on a full suite of metallurgical test work performed by SGS Canada Metallurgical Services Inc. in Lakefield, Ontario, Canada. These tests included lab and bench scale process development work, a bulk sample/pilot plant program, and metallurgical variability testing. The overall graphitic carbon recovery into the final concentrate is 88.3%.

Metallurgical Data - Flake Size Distribution and Product Grade

Product Size% DistributionProduct Grade (% Carbon)
+48 mesh (jumbo flake)23.696.9
+65 mesh (coarse flake)14.697.1
+80 mesh (large flake)8.297.0
+100 mesh (medium flake)6.997.2
+150 mesh (medium flake)15.597.3
+200 mesh (small flake)10.198.1
-200 mesh (fine flake)21.197.5

Pricing Matrix - Flake Size Distribution Grouping and Product Grade

Product Size% DistributionProduct Grade (% Carbon)
>50 mesh23.696.9
-50 to +80 mesh22.797.1
-80 to +100 mesh6.997.2
-100 mesh46.897.6

The selling price used in the PEA is the volume weighted average sales price for the various flake sizes and grades of SuperFlake® graphite concentrate that are expected to be produced from the Molo deposit. Prices used are based on current market prices provided by UK-based, commodity price reporting agencies Benchmark Minerals Intelligence and Fastmarkets, who are recognized as leaders in providing independent and unbiased market research, pricing trends and demand and supply analyses for the natural flake graphite market.

No price escalation for graphite sales prices into the future was applied to the PEA model. Current market prices were used and flatlined over the life of mine. No pricing premium for valued-added applications was applied on any sales. Furthermore, no financial or operational calculations and/or scenarios in the PEA financial model with regards to downstream value-added processing of SuperFlake® graphite concentrate were included. This includes purification, spherodization coating for battery-grade graphite and thermal expansion for specialty graphite applications, such as foils.

Battery Anode Facility

The PEA's enhanced Phase 2 capacity was determined based on discussions with automotive manufacturers ("OEMs") and our battery anode offtake partners. The Company and the battery anode offtake partners are evaluating construction of a battery anode facility ("BAF"), capable of converting flake graphite concentrate from any qualified mine into spheronized and purified graphite ("SPG") and into coated SPG ("CSPG"). CSPG is the final form of natural graphite required to manufacture lithium-ion batteries required by OEMs. As announced on November 15th, 2021, the Company initiated a technical study to determine the capital and operating costs for our first BAF and is considering several proposed locations.

Based on recent discussions with OEMs and our battery anode offtake partners, the Company expects demand for CSPG to experience significant growth. For example, a single mid-sized OEM's 7-year demand forecast would require NextSource to construct a BAF with a CSPG production capacity of 58,000 tpa. Since it takes 2.2 tonnes of flake graphite to produce 1 tonne of CSPG, the majority of Phase 2 production capacity would be dedicated to supply the BAF for such a single mid-sized OEM.

Molo PHASE 1 Construction and Commissioning Update

On January 11, 2022, the Company announced the Molo Phase 1 processing plant (the "Processing Plant"), which was fully fabricated and constructed at an offshore facility, had successfully passed Factory Acceptance Testing and final verification. The Processing Plant has since been dismantled, packaged and is now ready to be shipped to the mine site.

Due to Madagascar's ongoing COVID-19 travel restrictions, and recent cyclone activity impacting the eastern seaboard of the country, the commencement of earthworks and civil work at the mine site has been delayed and commissioning of the Molo Phase 1 process plant is now targeted for Q3, 2022.

Phase 1 of the Molo Graphite Mine is fully funded and when commissioned, Molo will become one of the few operating graphite mines outside of China.

The Company has not yet made a production decision in respect of Phase 2. The Company expects that it will assess the results of a definitive feasibility study before making a production decision in respect of Phase 2.

TECHNICAL REPORT FILING

This PEA technical report will be filed under the Company's profile on SEDAR at www.sedar.com and will be posted on NextSource's website at www.nextsourcematerials.com within 45 days of this new release.

Data verification programs have included review of QA/QC data, re-sampling and sample analysis programs, and database verification. Validation checks were performed on data, and comprise checks on surveys, collar co-ordinates and assay data. Sufficient verification checks were undertaken on the database to provide confidence that the database is appropriate to support the technical information contained herein.

QUALIFIED PERSONS

The PEA was prepared in accordance with National Instrument 43-101 standards by Mr. Johann de Bruin, Pr. Eng, of Erudite Strategies. Mr. de Bruin is the Qualified Person who verified the technical data using industry acceptable standards and signed off on the relevant sections in the report to be filed on SEDAR.

Mr. Craig Scherba, P.Geo., President and CEO of NextSource, is the qualified person who reviewed and approved the technical information provided in this press release.

ABOUT NextSource Materials INC.

NextSource Materials Inc. is a strategic materials development company based in Toronto, Canada that is intent on becoming a fully integrated, global supplier of critical battery and technology materials needed to power the sustainable energy revolution.

The Company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite deposits globally, and the only one with SuperFlake® graphite. Construction of Phase 1 of the Molo Project is underway, with commissioning expected in Q3, 2022.

NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".

To learn more, please visit the Company's website at www.nextsourcematerials.com or email investor relations at info@nextsourcematerials.com

For further information contact: +1.416.364.4911

Brent Nykoliation, Executive Vice President, Corporate Development at brent@nextsourcematerials.com or Craig Scherba, President and CEO at craig@nextsourcematerials.com

Safe Harbour: This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others; regarding the results of the PEA for Phase 2 expansion, collaboration agreements to build a value-added CSPG (anode) facility, time to commissioning the Molo Phase 1 and the BAF, the demand for EVs, demand for CSPG, the use of SuperFlake®, successful and on-budget construction of the Molo Graphite Project, CSPG plant and BAF, sourcing the funds needed to construct the BAF, , estimated future production, capex and opex from the Molo Graphite Project (for Phase 1 and Phase 2), completion of the study relating to the BAF, and the continuation of the supply relationships of the Partners. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

SOURCE:NextSource Materials Inc.



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NextSource Materials

NextSource Materials

Overview

NextSource Materials: Construction of Molo Graphite Mine is Fully Funded; Production in Q4 2022

Vision Blue Resources Ltd, a newly created battery commodity/resource-focused investment company founded by Sir Mick Davis (former CEO of Xstrata Plc), made a significant strategic investment in NextSource Materials to fully fund the construction of its Molo graphite mine in Madagascar. Production is scheduled in Q4 2022.

According to UK’s Roskill Research, battery demand for raw material graphite is expected to grow by approximately 23 per year-over-year for the next decade. This dramatic spike in demand is due to graphite’s critical role as the anode material in lithium-ion batteries. Electric vehicle batteries contain between 60 to 90 kilograms of graphite per battery. By volume, graphite is the largest raw material in a lithium-ion battery. As the electric vehicle market continues to grow, investing in the companies that produce these valuable battery materials and have first-mover advantage can provide significant value-creation and exposure to this expanding market.

NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is entering production with its 100%-owned Molo Graphite Project in southern Madagascar in 2022. The Molo Graphite Project is a fully permitted and funded project that ranks as one of the largest and highest quality flake graphite deposits globally, and is the only project with SuperFlake® graphite.

The Company utilized an all-modular build approach when constructing the Molo mine. Initial production is 17,000 tonnes per annum (“tpa”) over the first two years of production followed by mine expansion in Year three of an additional 150,000 tpa. Offtakes are in place for more than 100% of initial Phase 1 production.

Graphite in Madagascar is renowned for its quality and flake size. For almost a century, Madagascar has been exporting flake graphite to the world but in limited quantities. Molo will catapult Madagascar to a top 5 graphite producing country. With its Green Giant vanadium project also within close proximity to the Molo project, NextSource Materials controls two very strategic sources of battery materials at one source.

For further information about NextSource visit our website at www.nextsourcematerials.com or contact us a +1.416.364.4911 or email Brent Nykoliation, Executive Vice President, Corporate Development at brent@nextsourcematerials.com or email Craig Scherba, President and CEO at craig@nextsourcematerials.com.
NextSource Materials

NextSource’s 100 percent owned and fully permitted Molo graphite project drew investor attention for its large-high-quality flake graphite deposit and unique SuperFlake graphite concentrate. The company announced in May 2021, that former Xstrata CEO Sir Mick Davis committed a strategic investment of US$29.5 million in NextSource mining operations. This investment provided the entire funding to bring the Molo Graphite mine into production.

Vision Blue Resources, the firm that Davis founded in December 2020 to invest in battery and technology minerals, selected the Molo graphite project as its flagship investment, noting that the graphite market has been underinvested considering the increasing demand in recent years. “This investment in NextSource underlines our belief that the massive secular change in demand for critical battery material resources is not being met by an appropriate supply-side response, largely as a result of capital constraints,” Davis stated.

The company utlized an all-modular build approach to construct the Molo mine. Phase one production will be approximately 17,000 tonnes per annum over the first two years with a phase two expansion on 150,000 additional tonnes in year three.

NextSource Materials
NextSource Materials

NextSource has also outlined a fully integrated supply chain plan to build a battery anode facility (BAF) to produce coated, spherical, purified graphite (CSPG). The company will be outlining its phase one BAF construction plans by the end of 2022. NextSource has a significant advantage over other projects attempting to produce anode material via its exclusive collaboration with one of Japan’s prominent producers of anode material to OEM supply chains.

In April 2021, the company finalized an exclusive partnership with a well-established and leading company that processes SPG for leading Japanese anode and battery makers, who in turn supply the Tesla supply chain and Toyota supply chains. The company has also executed an commercial offtake agreement with thyssenkrupp Materials Trading GmbH, an international trading and services company headquartered in Essen, Germany, for the sale of 35,000 tonnes per annum (tpa) of the SuperFlake® graphite products.

NextSource’s other highly prospective project, the Green Giant vanadium project in Madagascar, stands out for its sediment-hosted deposit profile, which is only seen in approximately 5 percent of total vanadium occurrences.

The company believes strongly in vanadium’s potential market growth with the popularization of VRBs as a leading technology for green energy applications. Since project acquisition in 2007, NextSource has spent over US$20 million on the exploration and development of the Green Giant.

NextSource’s management team and directors bring decades of professional mine development and capital markets expertise. Combined, NextSource has assembled an impressive team that has proven track record in mine operations and building shareholder value. This positions the company for significant growth and economic success as it strives to meet the world’s increasing demand for graphite.

Company Highlights

  • The Molo graphite project is a fully permitted and fund funded asset and will be the only graphite project to enter production in 2022 outside of China . The deposit ranks as one of the largest-known and highest quality flake graphite deposits in the world.
  • Vision Blue Resources, a fund headed up by Sir Mick Davis that invests in strategic battery materials, is NextSource’s largest shareholder.
  • The company’s Green Giant vanadium project is an advanced stage exploration project that is one of the world’s largest known vanadium deposits. The sediment-hosted geophysical profile of this vanadium deposit is well-suited for vanadium redox batteries, which are a leading battery technology for large scale energy storage applications.
  • Sir Mick Davis is NextSource’s chairman and this mining heavyweight brings years of valuable experience in mine development and financing expertise.
  • NextSource will complete a feasibility study in November 2022 for its Phase 2 expansion of an additional 150,000 tonnes in order to meet the significant forecasted demand for graphite. Phase 2 construction is expected to take 12 months to complete and construction can commence as soon as funding is in place.
  • NextSource is the only graphite company to have secured two long term offtakes with tier one partners. The first is for the sale of 20,000 tonnes per annum with a prominent Japanese trader that supplies the Tesla and Toyota battery supply chains, and the second is with thyssenkrupp Materials Trading for the sale of 35,000 tonnes per annum of SuperFlake® graphite concentrate.
  • NextSource has furthered strengthened its partnership with its Japanese partner through an exclusive collaboration to build battery anode facilities (BAF) to produce graphite anode material. Construction of its Phase 1 BAF is expected to commence in January 2023 with commissioning by end of 2023. The verification facility will produce spherical, purified graphite (SPG) and coated SPG (CSPG) using established processing expertise.

Key Projects

Molo Graphite Project

The Molo graphite project is a wholly owned feasibility-stage asset that ranks as one of the largest-known and highest quality flake graphite deposits in the world. The property is over 62.5 hectares, sits in the Tulear region of South-western Madagascar and is located 11.5 kilometers east of the town of Fotadrevo

Total combined graphite resources are measured at 141.28 million tonnes at 6.13 percent total graphitic carbon, with a contained ore reserve of 22.44 million tonnes at 7.02 percent graphitic carbon. The company has delinatined over 300 line kms of continuous graphite mineralization at surface. NextSource has virtually an unlimited supply of graphite it can bring to the market in lockstep with demand.

SuperFlake

NextSource has superior flake size distribution and well above the global average. The Molo asset is relatively unique for having almost 50 percent premium-priced large and jumbo flake graphite, and can achieve up to 98 percent carbon purity with simple flotation alone. Molo SuperFlake® has been verified by end-users and meets or exceeds all criteria for the top demand markets for flake graphite; anode material for lithium-ion batteries, refractories, graphite foils and graphene inks.

NextSource has completed a series of Feasibility Studies on the project since 2015, with an updated Feasibility Study for phase two mine expansion due this November.

For all details and assumptions relating to the parameters of the mineral resource, reserve estimates, and data verification procedures for phase one of the Molo Project, please see “Molo Feasibility Study, National Instrument 43-101 Technical Report on the Molo Graphite Project located near the village of Fotadrevo in the Province of Toliara, Madagascar Prepared by Erudite Strategies (Pty) Ltd” dated May 31, 2019.Green Giant Vanadium Project

The 100 percent owned Green Giant vanadium project is an advanced stage exploration project located in South-central Madagascar and is one of the world’s largest known vanadium deposits. The project leverages good mining conditions and convenient close proximity to NextSource’s flagship Molo graphite project.

The Green Giant Project is a rare type of vanadium deposit because it is sediment-hosted. No magnetic metals are associated with Green Giant’s vanadium, making the project ideal for producing high-purity vanadium pentoxide, a key material in vanadium redox batteries.

The property’s National Instrument 43-101 compliant resource measures an estimated 60 million tonnes of vanadium pentoxide at an average grade of almost 0.7 percent at a 0.5 percent cut-off.

Since 2008, Green Giant has seen extensive diamond drilling campaigns, soil sampling, airborne and ground geophysics and EM surveying. NextSource intends to continue developing the property’s three main zones, which are referred to as the Jaky, Manga and Mainty deposits.

Management Team

Craig Scherba, P.Geo. — President and CEO

Craig Scherba was appointed president and CEO in September 2012 and has been a director since January 2010. Previously, Scherba served as vice president, Exploration of the company, since January 2010. Prior, Scherba was a managing partner for six years with Taiga Consultants Ltd., a mining exploration consulting company. He has been a professional geologist since 2000, and his expertise includes supervising large Canadian and international exploration programs. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high-grade gold, copper and zinc Bisha project in Eritrea. He served as the company’s country and exploration manager in Madagascar during its initial exploration stage, discovering both the Molo Graphite and the Green Giant Vanadium deposits.

Robin Borley, Pr. Tech Eng — Chief Operating Officer

Robin Borley is a Graduate mining engineering professional and a certified mine manager with more than 25 years of international mining experience building and operating mining ventures. He has held senior management positions both Internationally and within the South African mining industry. He has most recently served as mining director for DRA Mineral Projects and was instrumental as the COO of Red Island Minerals in developing a Madagascar coal venture.

His diverse career has spanned resource project management, evaluation, exploration and mine development. Robin has completed several mine evaluations, including operational and financial assessment of new and existing operations across various resource sectors. He has experience in managing underground and surface mining operations from both the contractor and owner-miner environments.

Brent Nykoliation, BCom (Hons) — Executive Vice President

Brent Nykoliation joined the senior management team at NextSource Materials as vice president, Corporate Development. In 2007, he oversaw all communication with analysts, institutional investors and strategic offtake partners for the company. He brings over 20 years of management experience, having held senior marketing and strategic development positions with several Fortune 500 corporations in Canada, notably Nestlé, Home Depot and Whirlpool. Nykoliation holds a Bachelor of Commerce with Honours degree from Queen’s University.

Marc Johnson, CFA, CPA — Chief Financial Officer

Marc Johnson is a bilingual senior executive with over 20 years of business experience, including ten years at public corporations as CFO, VP Corporate Development and other financial management positions, and ten years in capital markets in investment banking and equity research. Johnson is a Chartered Financial Analyst and a Chartered Professional Accountant and joined as CFO in October 2015. He also holds a Bachelor of Commerce (Finance) from the John Molson School of Business at Concordia University in Montreal.

Board of Directors

Sir Mick Davis — Chairman

Sir Mick Davis is the CEO of Vision Blue Resources and a highly successful mining executive accredited with building Xstrata plc into one of the largest mining companies in the world prior to its acquisition by Glencore plc. Before listing Xstrata on the LSE as CEO he was CFO of Billiton plc and Chairman of Billiton Coal which he joined from the position of Eskom CFO. During his career in mining he has raised over US$40bn from global capital markets and successfully completed over US$120bn of corporate transactions, including the creation of the Ingwe Coal Corporation in South Africa; the listing of Billiton on the LSE; the merger of BHP and Billiton; as well as numerous transactions at Xstrata culminating in the sale to Glencore plc. Sir Mick Davis is a Chartered Accountant by profession, and holds an honours degree in Commerce from Rhodes University, South Africa and an Honorary Doctorate from Bar Ilan University, Israel.

Craig Scherba, P.Geo. — President and CEO and Director

Craig Scherba was appointed president and CEO in September 2012 and has been a director since January 2010. Previously, Scherba served as vice president, Exploration of the company, since January 2010. Prior, Scherba was a managing partner for six years with Taiga Consultants Ltd., a mining exploration consulting company. He has been a professional geologist since 2000, and his expertise includes supervising large Canadian and international exploration programs. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high-grade gold, copper and zinc Bisha project in Eritrea. He served as the company’s country and exploration manager in Madagascar during its initial exploration stage, discovering both the Molo Graphite and the Green Giant Vanadium deposits.

Robin Borley, Pr. Tech Eng — Chief Operating Officer/ Director

Robin Borley is a Graduate mining engineering professional and a certified mine manager with more than 25 years of international mining experience building and operating mining ventures. He has held senior management positions both Internationally and within the South African mining industry. He has most recently served as mining director for DRA Mineral Projects and was instrumental as the COO of Red Island Minerals in developing a Madagascar coal venture.

His diverse career has spanned resource project management, evaluation, exploration and mine development. Robin has completed several mine evaluations, including operational and financial assessment of new and existing operations across various resource sectors. He has experience in managing underground and surface mining operations from both the contractor and owner-miner environments.

Brett Whalen — Director (Non-executive)

Brett Whalen has over 20 years of investment banking and M&A expertise, spending over 16 of those years at Dundee Corporation. During his tenure at Dundee Corp., Whalen was directly involved in completing approximately $2 billion in M&A deals and helped raise over $10 billion in the capital for resource sector companies. While a vice president and portfolio manager of Goodman & Co., he oversaw the investment of $6 million into NextSource, enabling the company to achieve key technical milestones, notably the completion of its July 2017 Phase One Feasibility Study and the concept and design of the whole modular build approach NextSource will be utilized for construction of both Phase One and Phase Two of the Molo mine. Whalen has extensive knowledge of both graphite and vanadium and the general battery materials industry.

Whalen has held Board seats of several TSX-listed and privately held companies and holds a BA (Honours) degree in Economics and Finance from Wilfrid Laurier University.

Ian Pearce – Director (Non-executive)

Mr. Ian Pearce is the former CEO of Xstrata Nickel, and prior to that was the former COO of Falconbridge Limited, which was acquired by Xstrata Plc in 2006. Xstrata Plc’s acquisition of Falconbridge was one of the largest mining takeovers globally and one of the largest takeover bids in Canadian history. Mr. Pearce was also a founding partner of X2 Resources who, along with Sir Mick Davis, made up the team of six ex-Xstrata executives who formed the mid-tier diversified mining and metals company. He currently serves as a director for several global companies in the mining and metals, energy, and sustainability industries:

Mr. Pearce previously served as Chair of the Mining Association of Canada and Chair of the Nickel Institute. He holds a BSc from the University of the Witwatersrand, South Africa and an HNDT in Mineral Processing from the University of Johannesburg, South Africa.

Christopher Kruba — Director (Non-executive)

Mr. Kruba is Vice-President and Legal Counsel to Nostrum Capital Corporation and a number of related corporations that are part of the Toldo Group. The Toldo Group is headquartered in Windsor, Ontario and is composed of several privately held corporations in Canada and the United States, some of which have large manufacturing operations in diversified sectors and others which are involved in active and passive investments across capital markets throughout North America, Europe and Africa. In addition to his responsibilities as counsel to the Toldo Group, Mr. Kruba serves as corporate secretary to all the companies, is a member of group’s investment committee and he serves on the board of directors of many of the companies.

Mr. Kruba has extensive manufacturing and capital markets experience and has lead merges and acquisitions and participated in the management and strategic planning for numerous companies, including venture capital corporations in which the group has invested.

Nostrum Capital Corporation and Mr. Kruba personally have been investors in NextSource Materials Inc. since 2011.

NextSource Materials Provides Progress Update on Molo Graphite Mine in Madagascar

NextSource Materials Provides Progress Update on Molo Graphite Mine in Madagascar

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to provide a progress update for Phase 1 of the Molo Graphite Mine in Madagascar

The Processing Plant has arrived and been unloaded at the local port of Fort Dauphin in Madagascar and has cleared customs. Company-appointed logistics specialists have now commenced transporting all modules of the Processing Plant, including two mobile cranes, to the mine site. Earthworks at the mine site are complete and civil works are on schedule to be completed by the time the Processing Plant arrives.

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NextSource Materials Announces Solar and Battery Hybrid Power Plant Construction and Site Works Update

NextSource Materials Announces Solar and Battery Hybrid Power Plant Construction and Site Works Update

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to provide a site works update and to announce that a Madagascar subsidiary of CrossBoundary Energy ("CBE") has commenced the construction process for the solar and battery hybrid power plant for Phase 1 of the Molo Graphite Mine in Madagascar after the Company executed a definitive energy services agreement with CrossBoundary Energy's ("CBE") Madagascar subsidiary

Molo Mine Construction Update

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NextSource Materials Announces Initiation of Civil Works and Shipment of Buildings to the Molo Graphite Mine Site in Madagascar and Filing of Updated PEA

NextSource Materials Announces Initiation of Civil Works and Shipment of Buildings to the Molo Graphite Mine Site in Madagascar and Filing of Updated PEA

NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that its construction team is now setup at the Molo Graphite Mine site in Madagascar and civil and earthworks have been initiated in preparation for the delivery and installation of the processing plant. The offsite fabrication and construction of the auxiliary buildings and structures has also been completed and these are in the process of being delivered to the mine site

President and CEO, Craig Scherba commented,

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NextSource Materials Announces Factory Acceptance Testing of the Molo Graphite Mine Processing Plant is Complete and Preparations for Transport to Mine Site Have Initiated

NextSource Materials Announces Factory Acceptance Testing of the Molo Graphite Mine Processing Plant is Complete and Preparations for Transport to Mine Site Have Initiated

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that Factory Acceptance Testing and final verification of equipment design specifications and end-to-end functions of the processing plant for Phase 1 of the Molo Graphite Mine (the "Processing Plant") is complete

The Processing Plant was designed and built using an all-modular approach and is capable of processing 240,000 tpa of ore and producing approximately 17,000 tpa of high-quality SuperFlake® graphite concentrate. Factory Acceptance Testing ("FAT") was the final validation step after the fabrication and assembly of the Processing Plant equipment and was completed by our Engineering, Procurement and Construction contractor in their off-shore assembly facility under the supervision of SGS, the world-leader in process plant testing, inspection, and process certification.

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NextSource Materials Announces Fabrication and Assembly of the Molo Graphite Mine Processing Plant Has Been Completed and Factory Acceptance Testing Initiated

NextSource Materials Announces Fabrication and Assembly of the Molo Graphite Mine Processing Plant Has Been Completed and Factory Acceptance Testing Initiated

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that fabrication and assembly of the processing plant for Phase 1 of the Molo Graphite Mine (the "Processing Plant") has been completed by our Engineering, Procurement and Construction contractor (the "EPC Contractor") in their off-shore assembly facility and that Factory Acceptance Testing has been initiated

The Processing Plant has been designed and built using an all-modular approach and is capable of processing 240,000 tpa of ore and producing approximately 17,000 tpa of high-quality SuperFlake® graphite concentrate. The Processing Plant will now undergo Factory Acceptance Testing ("FAT") to validate the proper operation of the equipment and ensure that all design specifications and operational requirements have been achieved.

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Altech Chemicals Ltd Update of High Purity Alumina Project

Perth, Australia (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to provide an update on its Malaysian high purity alumina (HPA) project, and its continuing efforts to close project finance.

Highlights

- KfW IPEX-Bank continues to be in full support of the Company's Malaysia HPA project

- German Government Export Credit Agency Euler Hermes extends US$170m loan cover

- EPC contractor SMS group reiterates support of the HPA project

- Work continues on US$144m Green Gond offer

- Project level equity funding is being advanced by US based DelMorgan

Managing director Iggy Tan, accompanied by executive management, recently completed a visit to Europe.

The visit included a meeting with German government owned KfW IPEX-Bank, during which the bank was briefed on the status of Altech's secondary project finance initiatives - a US$144m green bond offer and the US$100m project level equity funding initiative. KfW IPEX-Bank confirmed its continued support for the project, and its commitment to the senior loan facility of US$190m. Importantly, Euler Hermes, the German government export credit agency, has renewed the US$170m export credit cover (guaranteed) for the KfW IPEX Bank senior loan facility. Both KfW IPEX-Bank and Euler Hermes acknowledged the headwinds facing project finance close from disruptions caused by the pandemic in the last few years as well as the current market uncertainty exacerbated by the Ukraine crisis in Europe.

A meeting was also held with Altech's long-standing strategic engineering partner and metallurgical consultant SMS group GmbH ("SMS"). SMS is contracted to construct the Malaysian HPA plant, and like KfW IPEX-Bank and Euler Hermes, SMS reiterated that it continues to be supportive of the Company's HPA project and looks forward to re-starting work on site. Altech and SMS agreed to extend the long stop date on the HPA plant's EPC contract.

Altech continues to work with London based structuring agent Bedford Row Capital Plc and Perth based Bluemount Capital (WA) Pty Ltd to finalise a US$144m green bond offering. Detailed presentations and discussions with interested parties are ongoing, and these are expected to continue.

In parallel with the bond offering, Altech is continuing with its endeavours to secure commitments for a project equity investment of US$100M. US Based global investment bank DelMorgan & Co. has advanced several leads and potential investors in relation to this. Presentations by Altech and detailed discussions with interested parties are ongoing.

Whilst headwinds in the current equity and financial markets are challenging, management remains committed to the project finance process, and for a positive project finance outcome.

In Malaysia, the HPA plant site within the Tanjung Langsat Industrial Complex remains in sound condition.

Regular site maintenance work is undertaken and permanent site security is in place. The already constructed maintenance workshop, electrical substation and storm water management infrastructure remain in as-constructed condition.



About Altech Chemicals Ltd:

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.



Source:
Altech Chemicals Ltd

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Focus Graphite Inc.

Focus Graphite Inc.

Focus Graphite Inc is an exploration stage company. The company is engaged in the acquisition, exploration, and development of mineral properties in Canada. Its projects include Lac Knife; Lac Tetepisca graphite and Lac Guinecourt graphite property.

electric vehicle charging

Graphite Market Update: H1 2022 in Review

Click here to read the previous graphite market update.

As the world continues to move away from fossil fuels to green sources of energy, the role of battery metals is becoming increasingly important, and graphite is no exception.

Analysts continue to be optimistic about the future of graphite and its use in electric vehicle (EV) batteries — at least for the next few years. Both synthetic graphite and natural graphite, in the form of the intermediate product spherical graphite, are currently used in the anodes of lithium-ion batteries.

What has happened in the graphite market so far in 2022? Read on to learn about the main supply and demand dynamics in H1 and what market participants are expecting for the rest of the year.

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South Star Battery Metals Announces Land Purchase, Application Submittal for the Full Mining License Doubling Production and Construction Update for Phase 1 Plant & Mine at its Santa Cruz Graphite Project

South Star Battery Metals Announces Land Purchase, Application Submittal for the Full Mining License Doubling Production and Construction Update for Phase 1 Plant & Mine at its Santa Cruz Graphite Project

South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBD), is pleased to announce that it has finalized the agreement for the land purchase required for construction of the Phase 1 mine and plant facilities as well as the first two to three years of operations at its Santa Cruz Graphite Project in Bahia, Brazil.

In addition, South Star has submitted the Planned Economic Analysis ("PAE") and the request for the final mining license ("concessão de lavra") to the Brazilian Mining Authority ("ANM") on August 1 st , 2022 for the Claim 872.737/2010, which is where the Phase 1 facilities are currently being installed. The proposed PAE doubles the Santa Cruz production capacity presented in the previously released PFS (March 2020) and incorporates a third phase of project development. The planned production schedule follows:

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Altech Chemicals Ltd Quarterly Activities Report

Perth, Australia (ABN Newswire) - Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) is pleased to announce the outstanding results from a Preliminary Feasibility Study (PFS) for the development of a 10,000tpa silicon/graphite alumina coating plant, in Saxony, Germany. The plant would be constructed by Altech Industries Germany GmbH (AIG), (ownership: 75% Altech, 25% Frankfurt stock exchange listed Altech Advanced Materials AG (AAM)), and would produce high capacity silicon/graphite battery anode materials "Silumina Anodes" under exclusive license from Altech. "Silumina Anodes " products are targeted to supply the burgeoning European electric vehicle market.

With a capital investment of US$95 million, the Company estimates a project net present value of US$507 million (NPV8), with net cash of US$63 million per annum generated from operations. The internal rate of return is estimated at 40%, with investment capital paid back in approximately 3.1 years. Total annual revenue at the 10,000tpa full rate of production is estimated US$185 million per annum.

Managing Director, Mr Iggy Tan, stated "Whilst Altech's top priority continues to be financing its Johor HPA project, the Silumina Anodes project represents an exciting downstream opportunity to utilise its HPA coating technology in silicon/graphite battery materials. We are pleased and excited about the results of the 10,000tpa Silumina Anodes PFS. Due to the attractive economics of the study, a decision has been made by the AIG board to immediately progress to a definitive feasibility study (DFS) for the project. AIG has already purchased land in Germany suitable for the project, and the plan is for the AIG team in Saxony to immediately commence DFS work. We believe that the production of Silumina Anodes materials could be a game changing technology for the lithium ion battery industry".

OUTSTANDING PRELIMINARY FEASIBILITY STUDY FOR SILUMINA ANODES BATTERY MATERIALS PROJECT

- Highly positive preliminary feasibility study for 10,000tpa Silumina Anodes project.

- Low capital cost (US$95 million) with outstanding economics.

- Pre-tax Net Present Value (NPV8) of US$507 million.

- Attractive Internal Rate of Return (IRR) of 40%.

- Site in Saxony, Germany already purchased.

- Green accredited project using renewable energy.

- European high quality graphite and silicon supply.

- Pilot plant engineering for product qualification underway.

- NDA executed with two German automakers and one European battery maker.

MAJOR SHAREHOLDERS CONVERT LISTED OPTIONS

- The Company's largest shareholder, Deutsche Balaton Aktiengesellschaft has converted 15,000,000 listed options with an expiry date of 31 May 2022 and conversion price of $0.08 each, for total proceeds of $1,200,000.

- Another significant shareholder, Delphi Unternehmensberatung Aktiengesellschaft has converted 11,519,296 listed options for total proceeds of $921,543.

- Altech has received total funds of $2,121,543 from both the Deutsche Balaton and Delphi conversions.

REMAINING LISTED OPTIONS EXPIRE

- All unexercised options with an expiry date of 31 May 2022 and exercise price of $0.08, have now expired.

- Altech does not have any other options on issue.

PATENT PROTECTION FOR SILUMINA ANODES BATTERY MATERIALS TECHNOLOGY

- Patent protection for Silumina Anodes battery materials technology in place.

- Australian provisional patent application originally filed on 13 May 2021.

- Broaden filings to extend reach and protection

- National Patent filings in the United States, Europe, China, Japan and Korea.

- International Patent filing covering up to 156 countries.

NEW WEBSITE

- Shareholders and interested parties can access the web site on www.altechchemicals.com.

SILUMINA ANODES PILOT PLANT CONSTRUCTION CONTRACT EXECUTED

- Silumina Anodes pilot plant construction contract executed with Kuttner GmbH & Co.

- Final plant engineering design and cost estimation completed.

- Strong experience in delivering metallurgical plant projects.

- Long lead items procurement has already commenced.

STRATEGIC PARTNERSHIP WITH FRAUNHOFER IKTS FOR SILUMINA ANODES QUALIFICATION

- Fast track Silumina Anodes product qualification with Fraunhofer IKTS.

- Fraunhofer IKTS is a world renowned battery materials and battery performance research centre in Germany.

- Independent performance testing and qualification of Silumina Anodes product will assist early market entry.

- IKTS has expressed potential for Silumina Anodes battery material.

JOHOR HPA PROJECT FINANCE UPDATE

- Altech continues discussions with various interested parties in relation to the Green Bond offering as well as the project equity finance.

- Project equity finance process running in parallel with Green Bond offer.

- Due diligence process with interested parties ongoing.

SIGNIFICANT INCREASE IN KAOLIN RESOURCE AT KERRIGAN

- Recent drilling program yields fresh kaolin resource data at Kerrigan tenement.

- Inferred Resource of 125 million tonnes of kaolin reported

- 47% increase in the kaolin tonnage compared to previous estimates.

*To view the full Quarterly Report summarized above, please visit:
https://abnnewswire.net/lnk/QNR1C327



About Altech Chemicals Ltd:

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.



Source:
Altech Chemicals Ltd

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