Green Technology Metals, one of northwestern Ontario’s leading lithium exploration players, has a letter of intent from Export Development Canada (EDC) that could capitalize Ontario’s first lithium mine.
The Australian company said in a Dec. 23 news release that the agreement in principle with the Crown lending corporation could deliver a flexible debt financing package of up to $100 million to be directed toward its Seymour lithium deposit near Armstrong.
The government support is contingent on the EDC carrying out and completing its own due diligence process which includes, what was described in the release as, an “environmental and social review” by the federal credit agency.
No date was provided in the release on when that federal process will be complete.
Green Tech said it’s been discussing the details of the project and its financing model with the EDC since September.
This next year figures to be a foundational one for Green Tech. The company anticipates finalizing financing arrangements for Seymour in 2025 and making a pivotal construction decision.
Seymour is one of Green Tech’s two deposits in the northwest. Seymour, situated near the north shore of Lake Nipigon, is the more advanced of the two. Its Root deposit, northeast of Sioux Lookout, is shaping up to be the next mine in the queue. The company also has plans to build a lithium conversion plant in Thunder Bay with the intention of supply the domestic electric vehicle battery market.
To build Seymour is a $282-million venture. Combined with an integrated Thunder Bay refinery, the entire portfolio of assets will carry a $1.8-billion development price tag.
“Strong interest” is there from international commercial lenders, Green Tech said, when combined with government support, that strengthens their hand and bolsters their confidence in putting Seymour on track to become, possibly, Ontario’s first lithium mine.
Last September, Green Tech announced a strategic partnership with South Korean battery giant EcoPro Innovation, considered a global leader in lithium hydroxide production. In return for an $8 million investment (Australian dollars), EcoPro takes a 16.6 per cent stake in Green Tech.
In a statement, company managing director Cameron Henry, said having the EDC’s backing gives them “sourcing flexibility, allows greater access to low-cost direct lending and is non-dilutive to GT1 shareholders. We continue to engage with global commercial lenders as part of our broader financing efforts, but the strong indication of interest from EDC validates the robustness of the Seymour Project and further reinforces our strategy to become Ontario’s first lithium producer.”
Back in September, Canada Nickel was also the beneficiary of a potential major loan from EDC worth close to $680 million to finance its Crawford nickel sulphide deposit, north of Timmins.
