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by Will Purcell

The critical and specialty minerals stocks box score on Monday was a great 114-54-142 as the TSX Venture Exchange rose 30 points to 1,023. Well, that good news left a nasty mark. Eric Desaulniers's Nouveau Monde Graphite Inc. (NOU) flopped 74 cents to $2.52 on 6.42 million shares Friday on word that it has arranged $272-million (U.S.) in financing.

The $213-million (U.S.) equity investment comes from three major new shareholders. Canada Growth Fund Inc. is in for $61-million (U.S.), the Quebec government's Investissement Quebec is buying $61-million (U.S.) of shares and Eni S.p.A. is kicking in $70-million (U.S.). Further, Nouveau Monde is selling another $84-million (U.S.) of stock through a bought-deal placement. All the shares are being sold at $1.84 (U.S.) apiece, about $2.55 (Canadian) -- hence the sell-off.

The new cash, added to the $335-million (U.S.) that Nouveau Monde is raising through its recently revealed senior project debt facilities, is expected to be sufficient to fully finance the phase II development of company's Matawinie graphite project in Quebec. It "positions Nouveau Monde Graphite to advance toward final investment decision and construction," Mr. Desaulniers applauds, with the cash to be used for financing the design, engineering and construction of the project -- and for administrative expenses and general working capital.

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