Frontier Lithium has netted up to $6 million to to drive an access road and install other infrastructure into its burgeoning PAK Lithium Project in northwestern Ontario.
The initial funding announcement was made at a news conference in Thunder Bay last October. The money was coming from Ottawa’s Critical Minerals Infrastructure Fund.
Final approval was dependent on Natural Resources Canada performing its due diligence work.
Frontier said in a March 31 news release that agreements with the federal government have been signed and $6 million in non-repayable funding is in the company’s bank account.
This funding is earmarked for the road and to construct power infrastructure deemed critical to support the proposed mine.
Frontier is a leading lithium player in Ontario. Its PAK project contains two spodumene-bearing lithium deposits that the company is billing as the largest in Ontario and one of the highest grade lithium resources in North America. Its projected mine life is 24 years.
The company is also making moves to set up a lithium refinery in Thunder Bay, having recently secured waterfront property at the site of the city's former power station.
A breakdown of the funding involves $2.8 million for pre-construction work around the road development, including environmental studies for a 56-kilometre permanent road that will link the future mine to the provincial highway system. The road is needed to move lithium concentrate out for processing.
About $3.2 million is allocated for engineering, design and permitting studies for a power substation and power line to hook up the PAK project with the nearby Wataynikaneyap (Watay) Power transmission line.
In the release, Frontier said it remains committed to ongoing engagement and consultation with area Indigenous communities and credited the federal government to supporting the critical minerals sector which strengthens Canada’s place in the global electric vehicle and battery storage market.
