NextSource Materials Closes Private Placement for Gross Proceeds of CAD14.7 Million
On November 12, 2021, NextSource Materials Inc. successfully closed a private placement offering, raising an impressive CAD14.7 million in gross proceeds. This significant achievement is a testament to the confidence and support of investors in the company’s strategic vision and growth prospects.
The private placement consisted of the issuance of units at a price of CAD0.16 per unit. Each unit comprises one common share and one common share purchase warrant of NextSource Materials. The warrants included in the units entitle the holders to purchase an additional common share at a price of CAD0.24 per share for a period of two years from the closing date.
NextSource Materials plans to utilize the proceeds from the private placement towards advancing its Molo Graphite Project located in Madagascar. The project is a fully permitted and construction-ready graphite mine, positioning NextSource Materials as a significant player in the global graphite market.
The successful closing of the private placement reflects the confidence of investors in NextSource Materials’ ability to deliver value and capitalize on the increasing demand for graphite, a critical component in various industries including electric vehicles, energy storage, and other high-growth sectors.
“We are pleased with the strong interest and support shown by investors in this private placement, which will enable us to accelerate the development of our Molo Graphite Project, stated NextSource Materials’ CEO. With the funds raised, we are well-positioned to execute our strategic growth plans and create long-term value for our shareholders.”
The Molo Graphite Project boasts exceptional economics, with low operating costs and high-quality, large flake graphite that is sought after by customers worldwide. As global demand for graphite continues to rise, driven by the transition towards sustainable energy solutions, NextSource Materials is well-positioned to capitalize on this trend and establish itself as a leading supplier of sustainable graphite products.
The successful completion of the private placement is a significant milestone for NextSource Materials, demonstrating the company’s ability to attract investment capital and execute its growth strategy effectively. With a strong balance sheet and a clear path towards project development and production, NextSource Materials is poised for success in the rapidly evolving graphite market.