Exhibit 99.1
NextSource Materials Signs Letter of Intent with Japanese Offtake
Partner and Prominent Chinese Graphite Anode OEM Supplier to
Collaborate on Battery Anode Plant
TORONTO, April 09,
2020 -- NextSource Materials Inc. (TSX:NEXT) (OTCQB:NSRCF)
(“NextSource” or the “Company”) is pleased
to announce that it has executed a Letter of Agreement
(“LOI”) with its Japanese offtake partner and a leading
Chinese processor of graphite anode material to collaborate on the
construction of a value-add, battery anode plant in a jurisdiction
that is proximal to the Company’s Molo graphite project in
Madagascar.
To
protect certain confidential aspects of the LOI, the Japanese
Trading Company and the Chinese SPG producer have requested not to
be identified at this time.
JAPANESE
PARTNER
As
previously announced to the market on October 16, 2018, the Company
signed a ten (10) year Offtake Agreement with a prominent Japanese
Trading Company to purchase 20,000 tonnes per annum of Molo
SuperFlake® graphite for use in battery anode applications for
electric and hybrid vehicles.
NextSource’s
Japanese partner is a major supplier of spheronized and purified
graphite (SPG) for anode material in lithium-ion batteries
(“LiB”) for electric vehicle (“EV”) and
hybrid vehicle (“HEV”) applications. Its EV and HEV
automotive anode customers are global and currently supply graphite
anode material to the majority of Japanese automotive
OEMs.
Since
2018, NextSource and its Japanese partner have been in discussions
regarding potential supply chain collaboration to supply
value-added graphite material using SuperFlake® graphite
concentrate.
CHINESE
PARTNER
The
Chinese partner is one of the top processors of spheronized and
purified graphite (“SPG”) for the EV and HEV markets
and has verified that NextSource’s SuperFlake® graphite
concentrate meets or exceeds all quality requirements for SPG
material for EV and HEV automotive applications.
Its EV
and HEV anode customers are global, including the North American
market and its interest in the partnership with NextSource and the
its Japanese partner is to have an additional SPG facility located
outside of China and close to a high- quality mine source of flake
graphite to supply international automotive OEM
customers.
BATTERY
ANODE PLANT COLLABORATION
The LOI
is for the purpose of collaborating on the construction and
operation of a SPG facility to be located in a jurisdiction
proximal to the Company’s Molo graphite project in Madagascar
and strategically located to key demand markets for graphite anode
material.
President and CEO,
Craig Scherba P. Geo., said “The execution of this LOI is
part of NextSource’s downstream growth plan and brings
together one of the best global processors of graphite anode
material and one of the most prominent suppliers of graphite anode
material to automotive OEMs globally. This Letter of Agreement to
partnership on a SPG plant with such established partners positions
NextSource to be a significant and dominant future supplier of
high-quality flake graphite to major battery anode customers
globally and simultaneously gaining an immediate foothold into the
high-growth markets for EVs, as well as the burgeoning energy
storage market that will be reliant on graphite anode
material.”
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 fully
permitted, feasibility-stage project that ranks as one of the
largest-known and highest quality flake graphite deposits in the
world and is 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.