NextSource Materials Inc 6-K, filed May 25, 2021
NextSource Materials Inc. (NSRCF)
6-K
2021-05-25
For: 2021-05-25
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Added on
April 12, 2026
About this 6-K
NextSource Materials Inc filed this 6-K on May 25, 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 May,
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
May 25, 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:
May 25, 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 Secures Offtake Agreement with
thyssenkrupp Materials Trading
NEWS RELEASE – TORONTO, May 25,
2021
NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF)
(“NextSource” or the “Company”) is pleased
to announce it has executed an offtake agreement (“the
Offtake”) with thyssenkrupp Materials Trading GmbH
(“thyssenkrupp”), an international trading and services
company headquartered in Essen, Germany, for a long-term commercial
agreement for the sale of NextSource’s SuperFlake®
graphite products.
KEY HIGHLIGHTS
●
Long-term binding
commercial agreement between the parties for the sale of a minimum
of 35,000 tonnes per annum (tpa) of SuperFlake® graphite
concentrate from the Company’s Molo mine in
Madagascar.
●
The term of the
agreement is 10 years with an automatic 5-year
extension.
●
Product will be for
the refractory and expandable graphite (graphite foil) markets for
sale in, but not limited to, Europe, the United Kingdom, North
America, Mexico, China and South Korea.
●
As Phase 1 initial
production of the Molo mine in Madagascar will be approximately
17,000, the requested offtake sales volumes by thyssenkrupp will be
phased:
o
Minimum of 7,300
tonnes per annum (“tpa”) during Phase 1 initial
production, with commissioning targeted in April 2022.
o
Additionally up to
35,000 tpa to be available in Phase 2, with targeted production by
Q2 of 2024
o
The initial tonnage
volume will be used by thyssenkrupp to verify run-of-mill
production of SuperFlake®, which will then trigger the much
larger volume expansion of 35,000 tonnes requested.
Wolfgang
Schnittker,, CEO of thyssenkrupp Materials Trading commented,
“The trustful cooperation with NextSource enables us to
further expand our strong presence in the international foundry and
refractories industry. It is our unique selling point to
competitively serve various industries but especially emerging
industries and their highly specified
requirements.”
NextSource
President and CEO, Mr. Craig Scherba said, “This executed
offtake agreement for the sale of our SuperFlake® graphite was
the culmination of a multi-year process and is yet another
significant milestone in the Company’s strategy in becoming a
graphite producer of consequence. We are extremely pleased to
formalize this partnership with thyssenkrupp given their expertise,
scale, and extensive global distribution network. We look forward
to expanding our relationship together as we organically expand our
graphite market share over the years to come.”
Jörg
Glebe, Chief Operating Officer of thyssenkrupp Materials Trading
and responsible for the minerals business added: “The
partnership with NextSource underlines the consistent continuation
of our activities to expand our high-quality graphite supply
sources outside of China. In particular, the distribution range of
the graphite flakes enables us to supply our customers even more in
accordance with their needs and to support them in their long-term
growth plans.”
thyssenkrupp
Materials Trading is an international trading and services company
headquartered in Essen, Germany. Its product range includes raw
materials such as alloys, nonferrous metals, minerals, coke, coal
and ores, various raw materials for future technologies,
metallurgical products such as steel and pipes, pipe accessories,
finished steel and stainless steel, as well as trading with new and
used industrial equipment, machine tools, spare parts, and
structural elements for hydraulic steel engineering and the
offshore sector, plus materials and logistics services of all
kinds. The range is rounded out by tailored offers including
financing and shipment.
ABOUT THYSSENKRUPP MATERIALS SERVICES
With
around 480 locations – 271 of them warehousing locations
– in over 40 countries, thyssenkrupp Materials Services is
the biggest mill-independent materials distributor & service
provider in the western world. The wide-ranging capabilities
offered by the materials experts enable customers to concentrate
more on their individual core business and span two strategic
areas: global materials distribution as a one-stop-shop –
from steel, tubes and pipes, nonferrous metals and specialty
materials to plastics and raw materials – and tailored
services in the areas of materials management and supply chain
management. An extensive omni-channel architecture offers 250,000
customers worldwide round-the-clock access to more than 150,000
products and services. A high-performance logistics system ensures
that all deliveries are integrated smoothly into customer
production processes on a just-in-time or just-in-sequence
basis.
TEMPORARY SYMBOL CHANGE ON US EXCHANGE DUE TO SHARE
CONSOLIDATION
Pursuant
to the Company’s May 18, 2021 news release announcing the
implementation of a consolidation (reverse stock split) of its
Common Shares effective May 25, 2021, the Financial Industry
Regulatory Authority (“FINRA”) announced the share
consolidation will also take effect in the US Markets under symbol
NSRCF on May 25, 2021 in line with NextSource’s primary
exchange, the Toronto Stock Exchange (“TSX”). As a
result of the reverse split, FINRA will append a “D” as
the fifth character in place of the “F” for a temporary
period of 20 business days. After 20 business days the symbol will
revert back to NSRCF.
ABOUT SUPERFLAKE® GRAPHITE
As
announced in November 2015, 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.
As
detailed in the Molo 2019 Feasibility Study, SuperFlake®
graphite concentrate can achieve 98% carbon (C) purity with simple
flotation, has excellent thermal expansion, can be easily upgraded
to 99.97% purity (battery grade), contains no 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 the United States, Canada, 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.
Targeting
commercial production by April 2022, the Company’s Molo
graphite project in Madagascar is regarded as one of the largest
and highest-quality graphite deposits globally and the only project
with SuperFlake® graphite.
With
expected low-cost operations and both its mining and environmental
licenses in place, NextSource Materials has forged strategic and
exclusive partnerships with key supply chain participants to
provide graphite-based anode material to international OEMs for
lithium-ion and fuel cell applications, and graphite for high-end,
value-added applications where graphite is an essential
material.
The
Company will enter into production in phases and utilize an
all-modular build approach to construct the Molo graphite mine.
Initial production is expected to be approximately 17,000 tonnes
per annum (“tpa”) over the first two years of
production, followed by a significant expansion in production
planned in year three to match market demand.
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 Sales
agreement with tk, the processing plant capacity and timing for
Phase 1 and any expansion plans beyond. 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.