Nouveau Monde Graphite (NMG) will receive about CA$35.6 million ($24.9 million) in equity investment from the Canada Growth Fund through a private placement, Canada Growth Fund said Tuesday.

Under the agreement, the Canada Growth Fund will subscribe to about 19.8 million common shares of Nouveau Monde at CA$1.80 apiece.

In addition, the Canada Growth Fund will receive an equal number of common share purchase warrants, which can be exercised at $2.38 per share upon a positive final investment decision.

Investissement Quebec will match Canada Growth Fund's investment under the same terms, bringing total proceeds to Nouveau Monde to around CA$71 million ($49.7 million).

Nouveau Monde is developing an integrated value chain to transform natural graphite into active anode material. It is expected that Nouveau Monde will use the proceeds to support expenditures required to reach a final investment decision, currently targeted for 2025.

Shares of Nouveau Monde Graphite were up 2.3% in recent trading.

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