Gordana Slepcev COO LOMIKO METALS
What have been the main developments for Lomiko Metals (Lomiko) over the past 12 months?
Lomiko has continued ‘rock-to-battery’ metallurgical and electrochemical testing with Polaris and the National Research Council of Canada (NRC) as part of our pre-feasibility study (PFS). Lomiko has now successfully demonstrated the full value chain from ore to battery anode material on samples from the La Loutre project. We also completed a PFS level flotation flowsheet optimization program where material from the EV Zone was subjected to a locked-cycle flotation test. What factors prompted the US and Canadian governments to award Lomiko two grants?
La Loutre is the seventh largest graphite deposit in the world, close to infrastructure, downstream manufacturers, and the US I-75 battery highway. We have an excellent management team, a strong commitment to ESG and developing the project sustainably. Post-PFS, can you elaborate on the timeline for the La Loutre project?
We plan to start permitting the geotechnical works and initiate the PFS in the fall of 2024 to be completed by the second half of 2025. We will also start bigger bulk tests under the CRITM grant in the winter, and conduct pilot processing under the CMRDD grant, which must be completed within three years. We will continue with drilling to collect more data and increase the Measured resources for the feasibility study. Lomiko also plans to engage a group soon to work on a downstream preliminary economic assessment. What is Québec's role in developing a North American supply chain for graphite?
Québec has developed a good critical mineral strategy, and the La Loutre project is part of this. Although China still dominates the market and can decrease prices to hinder any other production, to secure supply and build a North American supply chain, there will still be support for graphite projects.
Eric Desaulniers CEO NOUVEAU MONDE GRAPHITE (NMG)
Could you provide an overview of Nouveau Monde Graphite (NMG) and its recent developments?
NMG is focused on developing two main assets: The Matawinie mine and the Battery Material plant in Bécancour. Construction has begun on the Matawinie mine, with significant progress made in clearing, road access, and environmental infrastructure. Once project financing is secured for both projects, construction will commence. Recently, we announced key offtake agreements with Panasonic and GM, covering 85% of our production, which has allowed us to finalize engineering plans for the refining plant. Additionally, due to high demand for our phase two production, we acquired the Mason Graphite asset, positioning us to expand into phase three via the Uatnan Mining Project, which will be five times larger than phase two. How did the partnerships with Panasonic and GM come about?
The equity investment from these customers has been a key factor in completing our project financing structure. Lenders who are providing close to a billion dollars needed assurance that our customers would be committed partners. Now, with equity commitments from Panasonic and GM, along with their long-term commitments to the project specifications, lenders are more comfortable moving forward. Panasonic has committed for seven years post-startup operation, and GM for six years. This not only facilitated the lending process but also convinced various supportive governments that we are deeply integrated into the market. Are there new incentives from the Canadian government and Québec province to support vertical integration and local processing?
Since day one Investissement Québec has been very helpful for us. Now, we see the Canadian government stepping up with strong programs. The investment tax credit announced last year, recently defined, offers a 30% credit on 80% of our CapEx, totaling about C$300 million. Additionally, the Canada Growth Fund, managed by PSP in Montreal with C$15 billion to deploy, bridges gaps in funding instruments to accelerate the transition.