PDAC: Ottawa sprinkles cash across 30 projects

Canada announced as much as $17 million each for 30 mining projects on Monday as another round of support linked to a Group of Seven critical minerals initiative.

The funding includes $16.7 million for First Phosphate’s (CSE: PHOS; US-OTC: FRSPF) Bégin-Lamarche project in Quebec to produce lithium iron phosphate cathode active material; $2.3 million for Frontier Lithium’s (TSXV: FL; US-OTC: LITOF) proposed lithium processing plant in northern Ontario; and $7 million for Greenland Resources’ (Cboe CA: MOLY) Malmbjerg molybdenum project on the Arctic island.

The total value of the projects, not the new financing, amounts to $12.1 billion, Tim Hodgson, Canada’s Minister of Energy and Natural Resources, said in Toronto at the Prospectors and Developers Association of Canada convention. The new agreements across 10 allied countries and the European Union add to 26 deals announced last fall at a G7 ministerial meeting for a total of $18.5 billion in projects, he said.

“Canada offers predictability, integrity and scale,” Hodgson told around 1,000 delegates in a packed session. “This is proof of concept, and this is capital mobilised at scale. I want to be clear to my fellow Canadians and all of our international friends, Canada intends to be the best place in the world to invest in mining processing and partnerships.”

The funding comes after Prime Minister Mark Carney earmarked the most ever federal budget dollars for the mining industry in November and declared a historical “rupture” from the United States at the Davos economic summit in January, comments that Hodgson repeated at PDAC. Ottawa is pivoting to be less reliant on its biggest trading partner by securing new agreements, like with Europe, China and new uranium supply to India, also declared on Monday.

R&D help

Hodgson highlighted up to $64.8 million for research and development projects with international partners, along with $10 million to support developing countries participating in the energy and digital transition. The funding is aimed at strengthening supply chains, reducing emissions and advancing diversified production and processing.

The European Investment Bank signed a letter of intent to negotiate an agreement with Canada on project co-operation, while Canada and Greenland signed a joint declaration on natural resources collaboration. Canada and aerospace defence contractor Leonardo also agreed to establish a working group on raw material supply.

More details on the new strategic partnerships and investments include how the privately-held Regeneration is developing a metal extraction and site restoration project in Hedley, B.C. It is backed by a potential investment of up to $15 million from the federal regional development agency Pacific Economic Development Canada.

The project includes offtake agreements and partnerships with Apple (Nasdaq: AAPL) and Toronto jewelry brand Mejuri, and aligns with local First Nations’ environmental and economic priorities, the ministry said.

Recycling

Cyclic Materials, a private company, is developing a rare earth recycling Centre of Excellence in Kingston, Ont., supported by a conditionally approved investment of up to $9.1 million from NRCan’s Global Partnerships Initiative, in addition to a US$25-million (C$34.2-million) equity investment from the Canada Growth Fund. The company has secured commercial agreements globally, including a memorandum of understanding with Neo Performance Materials (TSX: NEO).

Greenland Resources had secured a binding US$2-billion, 10-year offtake agreement with Outokumpu in Finland and previously signed supply memorandums with European industrial groups.

The project has also received a letter of intent for up to US$275 million in debt financing from Export Development Canada alongside Finland’s state export credit agency Finnvera, Sweden’s export credit agency EKN and Denmark’s Export and Investment Fund (EIFO). Greenland Resources has also signed a memorandum of understanding with Nuna Group for infrastructure construction and commissioning.

Lithium

Frontier Lithium has also signed a memorandum of understanding with Panasonic Energy of Japan for future lithium offtake. Its PAK lithium project was the first to proceed under Ontario’s One Project, One Process framework.

Regen Resources Recovery is advancing a brownfield synthetic graphite project in Welland, Ont., supported by an alliance with Linamar (TSX: LNR). Ontario’s Ministry of the Environment, Conservation and Parks is working to streamline approvals for the project while maintaining environmental oversight. The funding amount wasn’t immediately clear.

Rock Tech Lithium (TSXV: RCK; US-OTC: RCKTF) announced a memorandum of understanding with Siemens Canada to advance lithium conversion capacity for its Red Rock converter project in Ontario. A funding amount wasn’t stated.