Export Development Canada (EDC) on Tuesday provided up to C$100 million ($70m) in financing to develop the Seymour Lake lithium project in Ontario.
Seen as a key asset, the lithium mine operated by Australia’s Green Technology Metals (ASX: GT1) could become the province’s first lithium producer. On Dec. 23, Green Technology received a letter of interest from EDC. It outlined financial support, pending reviews and due diligence, the company said in a statement Monday. The province wants to build critical mineral supply chains for the energy transition.
“EDC’s support potentially increases sourcing flexibility, allows greater access to low-cost direct lending and is non-dilutive to GT1 shareholders,” GT1 managing director Cameron Henry said in a statement.
EDC, a federal Crown corporation, has closed 540+ deals in renewables, mining, and infrastructure as Canada advances strategic clean energy projects.
“This announcement could accelerate Seymour Lake’s development and reinforce its role in Canada’s critical minerals supply chain,” Brendan Yurik, CEO of Electric Royalties (TSXV: ELEC) said in a statement. Electric Royalties owns a 1.5% net smelter royalty on the project.
Green Technology plans to use EDC’s funding alongside interest from a global lending base to secure the financial backing for construction.
At A$0.0615 per share, Greet Technology shares trading in Sydney are down 75% over the past 12 months, having ranged between A$0.052 and A$0.285. Electric Royalties shares bounced 9.4% to C$0.175 in afternoon trades in Toronto. They’ve ranged between C$0.145 and C$0.33 over the past 12 months and the company has a market capitalization of C$18 million.
In October, the Canadian government set aside up to C$13.8 million through the Critical Minerals Infrastructure Fund (CMIF). This is for five projects in northwestern Ontario. It’s part of a national strategy to improve access to its mineral wealth.
The federal funding is part of the CMIF’s C$1.5 billion pot intended to support clean energy and electrification projects, announced almost one year ago. The fund exists alongside a C$3.8 billion critical minerals strategy. It was unveiled in 2022. The goal is to develop copper, cobalt, nickel, and other metals. These are used in technologies like batteries, wind turbines, and solar panels to fight climate change.
Green Technology Metals was to receive C$5.5 million from the latest funding. The money would upgrade 56 km of roads and replace three bridges. This would support its Seymour lithium project near Armstrong, 250 km north of Thunder Bay.
