Advisory firms find only benefits to Mason, Nouveau Monde JV

5th July 2022 By: Marleny Arnoldi - Deputy Editor Online

Independent proxy voting advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have advised Canadian corporation Mason Graphite shareholders to vote in favour of the option and joint venture (JV) agreement intended with NYSE-listed Nouveau Monde Graphite (NMG), as well as a change of business.

The advisory firms believe Mason stands to benefit from NMG’s expertise and commercialisation capabilities, and allow for maximum potential realisation of the Lac Guéret property – by increasing its scope of production to at least 250 000 t/y of graphite concentrate.

The deal will also afford Mason access to NMG’s demonstration plant that is necessary to advance the project.

“The JV agreement makes strategic sense as it enables the company to act on the new company business model, while minimising the costs associated with exploration and further development.

“The company appears to have conducted a lengthy strategic alternative review and in light of there being no significant governance concerns, shareholder approval of this resolution is warranted,” notes ISS.

NMG plans on investing C$10-million on the Lac Guéret project prior to the formation of the JV, C$2.5-million in equity of Mason at C$0.50 apiece, and C$2.5-million in equity of Mason at the formation of a JV.

As of July 4, the total votes cast represent 12.98% of the total shares issued and outstanding and both resolutions are being supported by 99.7% of the vote cast.