NextSource Materials Signs US$91 Million Debt Facility with IFC

Toronto-based NextSource Materials Inc. has signed a Mandate Letter with the International Finance Corporation (IFC) for a US$91 million debt facility. IFC, part of the World Bank Group, will lead this debt facility to fund the expansion of the Molo Graphite Mine in Madagascar.

In December 2023, NextSource published a Feasibility Study (FS) confirming the economic viability of expanding Molo's production capacity from 17,000 to 150,000 tonnes per annum of SuperFlake® graphite. The study estimated the project’s capital cost at US$161.7 million and projected significant pre-tax and post-tax returns.

The IFC facility will fund approximately 50% of the capital and working cost requirements for this expansion. Craig Scherba, President, and CEO of NextSource, stated that this partnership marks a milestone in supporting global battery material supply chains.

Completion of due diligence and obtaining the necessary approvals are expected by Q1 2025.