Inexperienced Expertise Metals receives $100 million letter of intent from Export Growth Canada
Inexperienced Expertise Metals, certainly one of northwestern Ontario’s main lithium exploration gamers, has a letter of intent from Export Growth Canada (EDC) that might capitalize Ontario’s first lithium mine.
The Australian firm mentioned in a Dec. 23 information launch that the settlement in precept with the Crown lending company may ship a versatile debt financing package deal of as much as $100 million to be directed towards its Seymour lithium deposit close to Armstrong.
The federal government help is contingent on the EDC finishing up and finishing its personal due diligence course of which incorporates, what was described within the launch as, an “environmental and social review” by the federal credit score company.
No date was supplied within the launch on when that federal course of will probably be full.
Inexperienced Tech mentioned it’s been discussing the main points of the venture and its financing mannequin with the EDC since September.
This subsequent yr figures to be a foundational one for Inexperienced Tech. The corporate anticipates finalizing financing preparations for Seymour in 2025 and making a pivotal development choice.
Seymour is certainly one of Inexperienced Tech’s two deposits within the northwest. Seymour, located close to the north shore of Lake Nipigon, is the extra superior of the 2. Its Root deposit, northeast of Sioux Lookout, is shaping as much as be the following mine within the queue. The corporate additionally has plans to construct a lithium conversion plant in Thunder Bay with the intention of provide the home electrical car battery market.
To construct Seymour is a $282-million enterprise. Mixed with an built-in Thunder Bay refinery, your entire portfolio of property will carry a $1.8-billion growth price ticket.
“Strong interest” is there from worldwide industrial lenders, Inexperienced Tech mentioned, when mixed with authorities help, that strengthens their hand and bolsters their confidence in placing Seymour on observe to turn out to be, presumably, Ontario’s first lithium mine.
Final September, Inexperienced Tech introduced a strategic partnership with South Korean battery large EcoPro Innovation, thought of a worldwide chief in lithium hydroxide manufacturing. In return for an $8 million funding (Australian {dollars}), EcoPro takes a 16.6 per cent stake in Inexperienced Tech.
In an announcement, firm managing director Cameron Henry, mentioned having the EDC’s backing provides 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.”
Again in September, Canada Nickel was additionally the beneficiary of a possible main mortgage from EDC value near $680 million to finance its Crawford nickel sulphide deposit, north of Timmins.
