NextSource Materials Inc 6-K, filed Nov 15, 2021
NextSource Materials Inc. (NSRCF)
6-K
2021-11-15
For: 2021-11-15
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About this 6-K
NextSource Materials Inc filed this 6-K on November 15, 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 November,
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
November 15, 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:
November 15, 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 Adds Proprietary and Established Coating
Process to its Battery Anode Facility Collaboration
TORONTO, ON / ACCESSWIRE / November 15, 2021 / NextSource Materials
Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the
"Company") announces it has signed a binding Amended and Restated
Collaboration Agreement ("Enhanced Collaboration Agreement") with
key processors of anode material within the Tesla supply chain
("the Partners") to incorporate a proprietary and established
graphite coating process to its previously announced value-added,
battery anode facility ("BAF") three-way
collaboration.
Highlights:
●
Proprietary
and established graphite coating process will be provided to
NextSource via a complete and turn-key battery anode facility being
built in partnership with key partners in the Tesla supply
chain.
●
Coating
process was developed by NextSource's Partners and was tested and
confirmed by Japan's prominent battery anode producers to meet all
Japanese automotive manufacturers ("OEMs") industry requirements.
These prominent anode producers currently supply major OEMs in
Japan, Tesla and electric vehicle ("EV") manufacturers in Europe
with coated, spheronized and purified graphite
("CSPG").
●
Enables
NextSource to meet automotive manufacturers' requests for a coated
final end-product for battery anodes with proven and established
processing technology.
●
NextSource
is expected to realize significant margins by producing coated
anode material, where coated graphite currently sells at an average
100% premium to non-coated graphite anode material.
●
The
coating process intellectual property ("IP") will be exclusive to
NextSource through the Enhanced Collaboration Agreement and will be
combined with the proprietary spheronizing technology IP being
licensed to the Company at no additional cost.
●
Once
the BAF is operational, NextSource expects to be the first global
solution that can provide OEMs with a complete and proven anode
solution using feedstock and value-added processing completely
independent of the Chinese supply chain.
●
Positions
NextSource with a first-mover advantage to become a significant
supplier of battery anode material for the EV revolution, providing
a fully integrated process that takes its Molo SuperFlake®
graphite from "the mine to the car".
●
Once
the Company makes a production decision, the battery anode facility
with coating capabilities is expected to take less than 12 months
to construct.
The Company previously announced in April 2021 the signing of a
three-way binding collaboration ("Collaboration Agreement"), which
paired NextSource with two well-established and leading anode
processing and supply companies (the "Partners") to produce
spheronized and purified graphite ("SPG") as part of the three-way
BAF collaboration.
This Enhanced Collaboration Agreement, which supersedes and
replaces the original Collaboration Agreement, adds established
coating technology IP to the Company's planned battery anode
facility along with established spheronization and purification IP
at an overall reduced licensing fee and will enable NextSource to
produce and sell CSPG anode material. CSPG is the final form of
natural graphite required for use in lithium-ion batteries and is
the graphite product that OEMs wish to source
directly.
The coating process being provided to NextSource was developed by
its anode Partners and tested and approved by their customers, who
are prominent anode producers in Japan who currently supply CSPG to
Tesla, Toyota, Honda, Nissan and other EV manufacturers in Europe.
Test results confirmed that the CSPG meets or exceeds Japanese
industry standards for OEM anode material.
Before flake graphite can be used as anode material in a battery,
it must undergo three upgrading processes: spheronizing,
purification and coating. Spheronizing and coating are very
technical processes that are predominantly undertaken by major
anode processors using their own "know-how" or intellectual
property and requires years to develop and optimize.
With coating now being incorporated into the BAF, the Company will
finalize targeted initial production capacity volumes and expects
full plant designs, equipment list and total capital costs will be
available to the Company by end of December 2021. The Company
initiated a study to determine the associated operating cost for
the BAF based on various proposed locations and will select the
optimal location based on the study results. The Company
anticipates the study to be completed in January 2022.
President and CEO, Craig Scherba P. Geo., commented,
"Our alliance with well-established partners already supplying
major anode processors positions NextSource as the front-runner to
become a fully commercial and vertically integrated supplier of a
complete and proven anode product to OEMs."
THE BAF PARTNERS
The Partners consist of NextSource's Japanese offtake partner
("Japanese Partner") and the Japanese Partner's Chinese CSPG
processing partner ("Chinese Partner").
The Japanese Partner is a prominent Japanese trading company who is
a leading supplier of bothSPG and CSPG anode material for
lithium-ion batteries for EV applications. The Japanese Partner
supplies approximately 35% of all SPG to the Japanese market,
supplying 4 of the 5 major anode producers in Japan.
The Chinese Partner is a leading processor of SPG and CSPG for EV
applications who owns and operates graphite anode processing
facilities in China. This Chinese Partner is regarded by OEM anode
manufacturers to be a best-in-class processor and one of the
highest quality suppliers of both SPG and CSPG
globally.
To protect certain confidential aspects of the Enhanced
Collaboration Agreement, the Partners have requested not to be
identified at this time.
ENHANCED COLLABORATION AGREEMENT DETAILS
●
NextSource
will wholly own and operate the facility and will be responsible
for the sourcing of all funds needed to construct the
BAF.
●
The
Chinese Partner will act as the technical partner and provide
NextSource with a complete, turn-key BAF operation that is a
duplicate of the facilities it currently operates in
China.
●
The
Chinese Partner will price, design and source all required graphite
processing equipment, design and develop the process flowsheets,
and provide all required training and operational know how related
to the production of CSPG anode material. It will receive a 2%
licencing fee based on the total annual sales value of all anode
material sold.
●
The Japanese Partner will utilize its network with
OEMs and act as NextSource's exclusive agent in the sales,
marketing and trading of CSPG anode material to OEM anode
manufacturers and to OEMs directly. It will receive a 3% sales
commission based on the total annual sales value of anode material
sold.
●
Both
the Japanese Partner and Chinese Partner will participate in the
development of 5-year business plans related to the expansion of
the BAF, and will ensure that the proprietary processes to make
CSPG in the BAF remain current and that any improvements and
advancements made or acquired will be integrated into the BAF
collaboration promptly.
About NextSource Materials Inc.
NextSource Materials Inc. is a strategic 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 in Madagascar is one of the
largest known and highest-quality graphite deposits globally, and
the only one with SuperFlake® graphite. Construction of Phase
1 of the Molo Project is underway, with commissioning expected in
Q2 2022.
NextSource Materials is listed on the Toronto Stock Exchange (TSX)
under the symbol "NEXT" and on the OTCQB under the symbol
"NSRCF".
Safe Harbour: This press release contains statements that may
constitute "forward-looking information" or "forward-looking
statements" within the meaning of applicable Canadian and United
States securities legislation. Readers are cautioned not to place
undue reliance on forward-looking information or statements.
Forward looking statements and information are frequently
characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain
events or conditions "may", "will", "could", or "should" occur.
Forward-looking statements include any statements regarding, among
others; regarding collaboration agreements to build a value-added
CSPG (anode) facility, time to commissioning the BAF, the demand
for EVs, the use of SuperFlake®, successful and on-budget
construction of the Molo Graphite Project, CSPG plant and BAF,
sourcing the funds needed to construct the BAF, expansion of the
BAF, estimated future production from the Molo Graphite Project,
completion of the study relating to the BAF, and the continuation
of the supply relationships of the Partners. 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. 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. Although
the forward-looking statements contained in this news release are
based on what management believes are reasonable assumptions, the
Company cannot assure investors that actual results will be
consistent with them. These forward-looking statements are made as
of the date of this news release and are expressly qualified in
their entirety by this cautionary statement. Subject to applicable
securities laws, the Company does not assume any obligation to
update or revise the forward-looking statements contained herein to
reflect events or circumstances occurring after the date of this
news release.
SOURCE: NextSource
Materials Inc.