Canada Growth Fund invests $113M in Quebec graphite miner

Canada Growth Fund has entered into a definitive agreement for a US$82 million (C$113 million) private placement with Nouveau Monde Graphite, a Quebec-based graphite miner and refiner developing North America's largest graphite mining operation. The company develops a fully integrated Canadian graphite supply chain anchored by the Matawinie Mine at Saint-Michel-des-Saints and a Bécancour-based refining facility.

The federal investment fund announced the transaction alongside commitments from Eni S.p.A. and Investissement Québec, which pledged approximately US$70 million and US$61 million respectively. The private placement will complement a concurrent public offering of subscription receipts for gross proceeds of approximately $84 million.

The transaction supports Canada's critical minerals value chain development and positions NMG as a strategic supplier to North American markets requiring graphite for clean technologies, advanced manufacturing and national security applications. The Matawinie Mine expects to become the largest graphite mining operation in North America.

Canada Growth Fund targets investments that strengthen critical supply chains and leverage Canada's natural resource potential. The federal fund identifies natural graphite as one of Canada's six priority critical minerals requiring strategic development support.

"One of CGF's core strategic objective is to leverage Canada's natural resource potential and strengthen critical supply chains. Through this Transaction, we are supporting a key player in global production of natural graphite, one of Canada's six priority critical minerals," Yannick Beaudoin, president and CEO of Canada Growth Fund Investment Management, said.

Beaudoin emphasized Canada's competitive advantages in resource development combined with high environmental standards. The investment enables NMG to advance development while maintaining responsible mining practices.

NMG founder and CEO Eric Desaulniers praised Canada Growth Fund's flexible mandate and experienced investment team for accelerating company development over the past year. The renewed support from a strategic federal investor strengthens the company's ability to attract additional private capital while reducing project development risks.

"Thanks to its flexible and agile mandate as well as its experienced investment team, CGF has enabled NMG to accelerate its development over the past year. Renewed support from a credible and strategic investor like CGF further strengthens our ability to attract private capital and reduce project risk," Eric Desaulniers, founder, president and CEO of NMG, said. "This transaction represents an important step forward in advancing our flagship Matawinie Mine and integrated graphite value chain."

The transaction forms part of a fully funded US$633 million financing package comprising approximately 53 percent debt and 47 percent equity. Export Development Canada and the Canada Infrastructure Bank provide US$335 million in senior debt financing to complete the funding structure.

Equity financing combines the concurrent public offering of approximately US$84 million with private placement investments totaling approximately US$213 million. Canada Growth Fund leads the private placement at US$82 million, followed by Eni at US$70 million and Investissement Québec at US$61 million.

The Matawinie Mine's final investment decision and NMG shareholder approval are expected in May 2026, with financial close anticipated shortly thereafter. The timeline enables the company to advance construction and commissioning activities supporting commercial production targets.

Canada Growth Fund previously announced a C$35.6 million private placement with NMG in December 2024, marking the federal fund's first investment in Canadian critical minerals development. The expanded commitment demonstrates continued confidence in NMG's integrated business model and market positioning.

The $15 billion Canada Growth Fund operates as an arm's-length investment vehicle designed to attract private capital for building Canada's clean economy. The fund uses investment instruments that absorb certain risks to catalyze private investment in low-carbon projects, technologies, businesses and supply chains.

Budget 2023 appointed PSP Investments through a wholly owned subsidiary to serve as asset manager for Canada Growth Fund. Canada Growth Fund Investment Management operates as the independent and exclusive asset manager responsible for investment decisions and portfolio management.

Nouveau Monde Graphite develops responsible mining and advanced processing operations targeting carbon-neutral advanced graphite materials for global markets. The company's Quebec operations create a fully integrated ore-to-processed-graphite value chain serving energy, advanced technology and manufacturing industries.

The company maintains recognized ESG standards and structures partnerships with major customers to establish long-term supply relationships. NMG positions itself as a strategic supplier of advanced materials to specialized manufacturers while promoting sustainability, innovation and supply chain.

More information is available at www.NMG.com and www.Cgf-fcc.ca