NextSource Materials Inc 6-K, filed Jun 23, 2021
NextSource Materials Inc. (NSRCF)
6-K
2021-06-23
For: 2021-06-22
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Added on
April 12, 2026
About this 6-K
NextSource Materials Inc filed this 6-K on June 23, 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 June,
2021
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
Press release dated
June 22, 2021.
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:
June 22, 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 Initiates Technical Study for 150,000 TPA
Phase 2 Expansion of Molo Graphite Mine and Initiation of Research
Coverage
by Cormark Securities
NEWS RELEASE – TORONTO, June 23,
2021
NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF)
(“NextSource” or the “Company”) announces
the commencement of a technical study for a Phase 2 production
capacity of at least 150,000 tonnes per annum (“tpa”)
of SuperFlake® for its Molo Graphite Mine in Madagascar. This
is a significant increase from our 2019 Feasibility Study
(“FS”) that considered a Phase 2 capacity of only
45,000 tpa.
The new
minimum targeted capacity was determined after recent discussions
with our flake graphite offtake partners and with our partnership
for the construction of a battery anode facility
(“BAF”) to produce spheronized and purified graphite
(“SPG”). The purpose of the technical study is to
determine the project economics pertaining to this increase in
targeted production for Phase 2.
Battery
shortage is a major risk to the burgeoning electric car era.
Security of supply of critical materials that go into these
batteries is at the top of the agenda for governments around the
world.
NextSource
is well positioned to become a significant producer of graphite and
a strategic supplier of battery anode material necessary to support
the electric vehicle revolution, providing a fully integrated
graphite product from “the mine to the battery”.
Construction of Phase 1 of the Molo mine is currently in progress.
Construction of Phase 2 expansion is expected to begin after
completion of Phase 1. Construction of the BAF is expected to begin
in 2022 and the Company is currently in discussions with its
offtake partners as to the initial production capacity of the
facility.
CORMARK SECURITIES INITIATES FORMAL RESEARCH COVERAGE
The
Company is also pleased to announce that Cormark Securities
Inc.’s (“Cormark”) Alternative Energy Industrial
Technology research analyst, MacMurray D. Whale, Ph.D., P.Eng., has
initiated equity research coverage on the
Company.
Cormark
is Canada’s leading mid-tier investment bank and one of
Canada’s foremost capital markets specialists, underwriters
and M&A advisors to both domestic and international
institutional investors. The initiating research report can be
obtained by contacting Cormark.
The
commencement of formal coverage by Cormark coincides with
NextSource having completed several major development
milestones:
1. Secured US$29.5 million to Fully Fund Phase 1 of Molo Graphite
Mine and Key Technical Studies
On
February 8, 2021, the Company announced a US$29.5 million strategic
investment by Vision Blue Resources, a newly created battery
commodity/resource-focused private investment company founded by
Sir Mick Davis. The first private placement was completed on March
15, 2021, and the second private placement was completed on May 19,
2021. The royalty is expected to close by the end of June 2021. The
Vision Blue financing package is sufficient to fully fund
construction of Phase 1 of the Molo Graphite Mine, the technical
study for the Phase 2 Molo expansion to a targeted minimum of
150,000 tpa, the technical study for the construction of the BAF,
and a new metallurgical study to advance the Company’s Green
Giant Vanadium Project.
In
accordance with the investment agreement, Sir Mick Davis was
appointed Chair of the Board of NextSource on March 15,
2021.
2. Initiation of Construction of Phase 1 of the Molo Graphite
Mine
On
March 19, 2021, the Company announced the awarding of the
engineering, procurement, and construction management
(“EPCM”) contract to Erudite Strategies Ltd. This was
followed by the commencement of procurement of processing plant
equipment on May 11, 2021. Site works are expected to begin in
Q3/Q4 2021, plant equipment installation beginning in Q1 2022,
followed by plant commissioning in Q2 2022.
As
outlined in the Company’s 2019 Feasibility Study
(“FS”), Phase 1 of the Molo Graphite Mine is estimated
to cost US$25 million, including working capital. Production
capacity is expected to be approximately 17,000 tpa of
SuperFlake® graphite concentrate with FOB operating costs of
US$566 per tonne.
3. Commercial Partnership & Offtake Secured with German
Conglomerate thyssenkrupp
thyssenkrupp
Materials Trading (“thyssenkrupp”), headquartered in
Essen, Germany, is a major international materials trader. With
offices in over 40 countries, thyssenkrupp Materials is the biggest
mill-independent materials distributor & service provider in
the western world.
As
announced on May 25, 2021, following a multi-year verification
process, thyssenkrupp entered into a long-term partnership with
NextSource and signed an offtake agreement to secure
SuperFlake® graphite concentrate for their
refractories/foundries, expandable graphite (graphite foil) and
battery anode production businesses.
Key Highlights:
●
Commercial
agreement covers the sale of 35,000 tpa of SuperFlake®
graphite concentrate from the Molo mine
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10-year term with
an automatic 5-year extension
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Products under the
agreement pertain to refractory, battery anode production and
expandable graphite (graphite foil) markets
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Geographical
regions include, but not limited to, Europe, the UK, North America,
Mexico, China and South Korea
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Minimum 7,300 tpa
during Phase 1 initial production
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Ramp up to 35,000
tpa in Phase 2
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Shipments in Phase
1 will be used to verify run-of-mill production to trigger the
larger volume expansion
4. Partnership with the Tesla Supply Chain to Build a Battery Anode
Facility
On
April 12, 2021, following a multi-year verification process,
NextSource signed a binding agreement and exclusive partnership
with two well-established and leading value-added graphite
processors that currently supply SPG to leading Japanese anode and
battery makers within the supply chains for Tesla and major
Japanese automotive companies (“OEMs”). Through this
collaboration, NextSource plans to construct and operate its own
value-added BAF to produce SPG and eventually coated SPG, for sale
into the supply chains for Tesla and other OEMs.
The
Partners consist of NextSource's Japanese offtake partner
("Japanese Partner") and the Japanese Partner's SPG processing
partner ("SPG Partner"). The Japanese Partner is a prominent
Japanese trading company who is a major supplier of SPG to one of
Japan’s largest chemical companies that supplies materials
for lithium-ion batteries for electric vehicle (“EV”)
applications. It currently supplies graphite anode material to
Japanese automotive OEMs and the Tesla supply chain. The SPG
Partner is a leading processor of SPG for the EV markets who owns
and operates graphite anode processing facilities in China and is
regarded by OEM anode producers to be a best-in-class processor and
one of the highest quality suppliers of SPG globally. The Japanese
and SPG Partners have had an alliance together for over 30 years
and have been processing battery-grade graphite together for over
15 years.
Key Highlights:
●
Provides NextSource
with a complete, turn-key facility that is an exact duplicate of
the current facility that is processing (SPG) for lithium-ion
batteries by current suppliers to Tesla and other
OEMs.
●
Enables NextSource
to gain immediate access to leading and established spheroidization
technology intellectual property, thereby significantly reducing
the time required for final QA/QC of its SuperFlake® graphite
with other OEMs
●
Partnership is
exclusive to NextSource and can provide OEMs a complete and proven
anode solution using both non-Chinese sourced feedstock and
value-added anode material
ABOUT SUPERFLAKE® GRAPHITE
Independent
testing by various third-party end users of flake graphite
confirmed that NextSource’s SuperFlake® graphite meets
or exceeds quality requirements for all major end-markets for
natural flake graphite. The major end-markets are refractories,
anode material for lithium-ion batteries, specialty graphite foils
used as essential components in the chemical, aeronautical and
fire-retardant industries, and graphene in high-end ink and
substrate applications.
SuperFlake®
graphite concentrate can achieve 98% carbon (C) purity with
flotation, has excellent thermal expansion, can be easily upgraded
to 99.97% purity (battery grade), contains minimal deleterious
substances and has high crystallinity.
SuperFlake®
graphite concentrate has excellent flake size distribution that is
well above the global average, with 46.4 percent being classified
as +80 (large), +65 (extra large) and +48 (jumbo) mesh in flake
size. Specifically, 23.6 percent of SuperFlake® graphite
concentrate is +48 mesh and greater in size.
SuperFlake®
is a registered trademark in Canada, the United States, Japan,
South Korea, U.K. and the European Union. These key jurisdictions
represent the top demand markets for flake graphite and the
locations where NextSource intends to sell its SuperFlake®
graphite and anode material.
ABOUT NEXTSOURCE MATERIALS INC.
NextSource
Materials Inc. is a battery materials development company based in
Toronto, Canada that is intent on becoming a fully integrated,
global supplier of critical battery and technology materials needed
to power the sustainable energy revolution. The Company’s
Molo graphite project is one of the largest known and
highest-quality graphite deposits and the only one with
SuperFlake® graphite.
NextSource
Materials is listed on the Toronto Stock Exchange (TSX) under the
symbol “NEXT” and on the OTCQB under the symbol
“NSRCF".
Please
see “Molo Feasibility Study, National Instrument 43-101
Technical Report on the Molo Graphite Project located near the
village of Fotadrevo in the Province of Toliara, Madagascar
Prepared by Erudite Strategies (Pty) Ltd” dated May 31, 2019
for certain other details and assumptions relating to the
parameters of the project, mineral resource and reserve estimates
and data verification procedures. Mr. Craig Scherba, P.Geo.,
President and CEO of NextSource, is the qualified person who
reviewed and approved the technical information provided in this
press release.
For
further information about NextSource visit our website at
www.nextsourcematerials.com or contact us a +1.416.364.4911 or
email Brent Nykoliation, Executive Vice President at
brent@nextsourcematerials.com or Craig Scherba, President and CEO
at craig@nextsourcematerials.com.
This press release contains statements that may constitute
“forward-looking information” or “forward-looking
statements” ("forward-looking statements") within the meaning
of applicable Canadian and United States securities legislation.
Readers are cautioned not to place undue reliance on such
forward-looking statements. Forward-looking statements in this
release include statements regarding statements regarding the
off-take agreement with tk, the processing plant capacity and
timing for Phase 1 construction, any expansion plans beyond, and
the capacity and timing of the value-added SPG facility, the
increase in the plant capacity, timing of plant commissioning,
closing of the royalty, the intents of the Company. These
statements are based on current expectations, estimates and
assumptions that involve a number of risks, which could cause
actual results to vary and, in some instances, to differ materially
from those anticipated by the Company and described in the
forward-looking statements contained in this press release,
including but not limited to the risks that the Molo Graphite Mine
is not built on the expected time and cost estimates, that the
mineral reserve and resource estimates for the Molo Graphite Mine
are incorrect, that expected recoveries and costs to produce SPG
are incorrect, and that permits and licences to operate the Molo
Graphite Mine may not be renewed or may be revoked, and other risks
discussed in the Company’s public disclosure documents. 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.