TSX-V-listed Nouveau Monde Graphite (NMG), which is developing the Matawinie graphite project in Saint-Michel-des-Saints near Quebec, has closed financing transactions totalling C$20-million with Pallinghurst.

Shareholders at the annual general and special meeting held last week approved the transactions, which will fund the next phase of NMG’s development, focused on lithium-ion battery material.

Graphite is a critical input material for the electric vehicle (EV) and stationary energy storage industries.

Upon closing the transactions, NMG has significantly strengthened its balance sheet, having issued a C$15-million secured convertible bond to Pallinghurst and sold a net smelter return royalty on the Matawinie graphite project to Pallinghurst in exchange for the cancellation of the existing C$5-million debt facility.

NMG has received “extremely strong” shareholder support for the transactions and the creation of a new control person, being Pallinghurst, with about 98% of the votes cast in favour.

Pallinghurst co-founder and NMG director Arne Frandsen said in a statement that the EV and clean energy revolution was gaining momentum globally.

“The winners will be the companies with the lowest-cost, highest-purity products that can be produced in a responsible and environmentally friendly manner, such as Nouveau Monde. Through this investment, we have reinforced our commitment to Nouveau Monde and more broadly to Québec, as a world-class destination for battery materials.

“Pallinghurst looks forward to being a catalyst for the development of Nouveau Monde, as a cornerstone for Québec’s broader battery hub strategy.”

Pallinghurst currently owns 52 350 000 common shares of NMG, representing 19.99% of the issued and outstanding common shares. Assuming the conversion in whole of the bond and the exercise in full of the warrants, Pallinghurst would own 202 350 000 common shares of NMG, representing 49.12% of the issued and outstanding common shares.