NextSource Materials Inc 6-K, filed Mar 4, 2021
NextSource Materials Inc. (NSRCF)
6-K
2021-03-04
For: 2018-10-16
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Added on
April 12, 2026
About this 6-K
NextSource Materials Inc filed this 6-K on March 4, 2021.
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of October,
2018
Commission
File Number 000-51151
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NEXTSOURCE MATERIALS INC.
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(Translation
of registrant’s name into English)
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1940-130 King Street West Toronto, Ontario, Canada M5X
2A2
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(Address
of principal executive office)
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Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F
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Form
20-F
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☒
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Form
40-F
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☐
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(1):
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Yes
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☐
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No
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☒
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(7):
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Yes
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☐
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No
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☒
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Exhibits
99.1
Press release dated
October 16, 2018 announcing offtake agreement with primary graphite
supplier.
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Dated:
March 4, 2021
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NEXTSOURCE MATERIALS INC.
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/s/
Marc Johnson
Marc
Johnson
Chief
Financial Officer
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Exhibit 99.1
NextSource
Materials Signs Offtake Agreement With Primary Graphite Supplier to
Major Japanese Electric Vehicle Anode Producer
TORONTO, Oct. 16,
2018 --
HIGHLIGHTS
●
Ten (10) year
binding Offtake Agreement signed with a prominent Japanese Graphite
Trading Company (“Japanese Partner”) to purchase 20,000
tonnes per annum of Molo SuperFlake® graphite for use in
battery anode applications for electrical vehicles
(“EV”).
●
The Japanese
Partner is a major supplier of flake graphite to Japan’s
largest battery processor and manufacturer of graphite anode
material in lithium ion batteries (“LiB”) for electric
vehicle applications. This battery anode manufacturer currently has
over 50 percent market share of premium-grade graphite anode
production in Japan for electric vehicle battery applications. Its
EV automotive customers are global.
●
Currently, the
majority of the Japanese Partner’s flake graphite purchases
are used to supply Japanese battery anode producers for EV
applications.
●
The major Japanese
electric vehicle anode producer has verified that
NextSource’s SuperFlake® graphite concentrate achieved
superior test results compared to the current graphite material it
sources for LiB in EV automotive applications.
●
The Offtake
Agreement represents more than the initial Phase 1 mine production
plan of 17,000 tonnes per year. As such, NextSource will begin
internal discussions regarding moving straight to Phase 2 expansion
tonnages.
●
Further significant
business opportunities remain between NextSource and its Japanese
Partner. Both parties have agreed to commence discussions regarding
potential supply chain collaboration, including partnering on
value-added, downstream products using SuperFlake® graphite
concentrate.
●
Further
opportunities remain available in the Asian and European markets,
with NextSource having achieved very advanced product qualification
with other potential partners toward supply
agreements.
OFFTAKE
AGREEMENT
NextSource
Materials Inc. (TSX:NEXT) (OTCQB:NSRCF) (“NextSource”
or the “Company”) is pleased to announce the signature
of a binding Offtake Agreement for the supply of NextSource’s
SuperFlake® graphite concentrate with a prominent Japanese
Trading Company that is a primary supplier of flake graphite to a
major Japanese electric vehicle anode producer. To protect certain
confidential aspects of the Offtake Agreement, the Japanese Trading
Company and the Japanese electric vehicle anode producer have
requested not to be identified at this time.
KEY
TERMS
The
Offtake Agreement is for a period of ten (10) years and activates
on the commencement of commercial production at the Molo project,
with an automatic renewal for an additional five (5) years. The
Japanese Partner will have the exclusive right to import and sell
SuperFlake® graphite concentrate in Japan. Provided that
commercial production commences within 3 years, following the ramp
up period, the Japanese Partner will purchase 20,000 tonnes of
SuperFlake® graphite per annum. Product prices will be
negotiated on a per order basis between the parties and will be
based on the floating market prices (FOB basis) prevailing in the
region.
INTEREST
IN ADDITIONAL TONNAGE
The
Company has been advised that the primary customer of the Japanese
Partner is a major global battery anode material manufacturer in
Japan who has qualified Molo SuperFlake® graphite for battery
requirements with its automotive customers. Additionally, the
Company has been advised that product testing by this battery anode
material producer has verified that NextSource’s
SuperFlake® graphite concentrate achieved superior test
results compared to the current graphite anode material it sources
for use in LiB for EV applications.
The
Japanese partner has indicated that all 20,000 tonnes per annum of
NextSource’s SuperFlake® graphite concentrate will be
used specifically for use in EV applications, and that the Japanese
partner’s intention is to purchase additional tonnage in
various size fractions for specific high-end application markets,
such as expanded graphite (graphite foils) for the consumer
electronics and fire retardant industries.
President and CEO,
Craig Scherba P. Geo., said “This offtake partnership is a
significant achievement for NextSource and is the culmination of
more than four years of extensive product testing of our
SuperFlake® graphite with major Japanese material
manufacturers. This offtake agreement allows NextSource to gain an
immediate foothold into the high-growth markets for electric
vehicles, as well as the burgeoning energy storage market that will
be reliant on graphite anode material. Our partnership with such an
established trading partner positions NextSource to be a
significant and dominant future supplier of high-quality flake
graphite to major battery anode and graphite foil customers
globally.”
FURTHER
PARTNERSHIP & VALUE-ADD OPPORTUNITIES
Separate from the
Offtake Agreement, NextSource and the Japanese Partner have agreed
to immediately commence discussions regarding additional supply
chain cooperation. Specifically, the parties have initiated
discussions regarding a potential partnership for the production of
value-add, downstream products using SuperFlake® graphite
concentrate. This would include, but not be limited to, the
processing of NextSource’s SuperFlake® graphite
concentrate into spherical and purified graphite (SPG), both
uncoated and coated, and expanded graphite for use in graphite
foils in a separate and dedicated facility in a location that would
best optimize the Japanese Partner’s customer base.
NextSource and the Japanese Partner have begun organizing logistics
towards meetings this November in Asia.
NextSource has made
significant progress qualifying its SuperFlake® graphite
concentrate with other major graphite end- users around the world,
who have undertaken extensive product testing as part of their due
diligence process for offtake agreements. The Company looks forward
to updating the market on the progress of developments with other
potential customers as soon as details are finalized.
STRONG
DEMAND FOR GRAPHITE IN EV APPLICATIONS
Benchmark Minerals
Intelligence has reported that natural flake graphite prices for
all sizes fractions at 95 percent carbon purity and greater are
nearing all-time highs. According to Roskill Information Services,
a leading UK-based market and metals research firm, demand for
natural graphite in LiB is expected to grow at 28% per year until
2027. Current global graphite anode consumption is estimated to be
between 90,000 to 110,000 tonnes per year and predicted to reach
800,000 tonnes per year by 2027.
The
spheronizing process when producing graphite anode material is a
very inefficient one, with average yields of between 30 percent and
40 percent. Therefore, it takes approximately three tonnes of
natural flake graphite to produce one tonne of graphite anode
material. Today, the largest consumption market for flake graphite
is for its traditional use in refractories, a crucial component in
the steel making process. However, the flake graphite market is
expected to double by 2025 based on the demand for LiB in EVs
alone, which represents a 40 percent to 45 percent consumption
share of flake graphite globally.
ABOUT
MOLO SUPERFLAKE® GRAPHITE
As
detailed in the Company’s June 2017 Feasibility Study,
NextSource’s SuperFlake® graphite concentrate can
achieve 98% carbon purity with standard mineral processing
(flotation), has excellent thermal expansion, can be easily
upgraded to 99.97% purity (battery grade) and contains no
deleterious substances. The SuperFlake® graphite
concentrate’s flake size distribution is well above the
global average, with 46.4 percent being classified as the
premium-priced +80 (large), +65 (extra large) and +48 (jumbo) mesh
flake size. Specifically 23.6 percent of SuperFlake® graphite
concentrate is +48 mesh and greater in size.
As
previously reported, significant independent testing of the pilot
plant material already completed by various key global offtakers
and graphite end-users has confirmed that Molo SuperFlake®
graphite concentrate meets or exceeds quality requirements for all
major end markets for natural flake graphite - anode material for
lithium-ion batteries, refractories and specialty graphite foils.
Molo SuperFlake® has also been verified for graphene ink
applications.
ABOUT
NEXTSOURCE MATERIALS INC.
NextSource
Materials Inc. is a mine development company based in Toronto,
Canada, that is developing its 100%-owned Molo Graphite Project in
southern Madagascar. The Molo Graphite Project is a
feasibility-stage, shovel-ready project that ranks as one of the
largest-known and highest quality flake graphite deposits in the
world and the only project with SuperFlake®
graphite.
For
further information contact: +1.416.364.4911
Brent
Nykoliation, SVP, Corporate Development at
brent@nextsourcematerials.com or Craig Scherba, President and CEO
at craig@nextsourcematerials.com
Safe Harbour: This press release contains statements that may
constitute “forward-looking statements” within the
meaning of applicable Canadian securities legislation. Readers are
cautioned not to place undue reliance on such forward-looking
statements. Forward-looking statements include, but are not limited
to, the terms of the Offtake Agreement, results of the updated 2017
Feasibility Study, any and all product test results and product
analysis, any statements relating to the further partnership and
value added opportunities, production at the Molo project, delivery
of the material and pricing terms. These are based on current
expectations, estimates and assumptions, and although the Company
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, actual results or
developments may vary and, in some instances, differ materially
from those anticipated by the Company and described in the
forward-looking statements contained in this press release. No
assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do so, what benefits the Company will derive there from. The
forward- looking statements contained in this news release are made
as at the date of this news release and the Company does
not
undertake any obligation to update publicly or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.