EDC to Provide $70M Financing for Ontario’s Seymour Lake Lithium Project
Export Development Canada (EDC) has committed up to C$100 million ($70 million) ($70 million) in financing for the development of the Seymour Lake lithium project in Ontario. This project, operated by Australia’s Green Technology Metals, is poised to become Ontario’s first lithium producer and a cornerstone of the province’s critical mineral supply chains for the energy transition.
The financial support from EDC, pending due diligence and reviews, was detailed in a letter of interest issued on December 23. According to Green Technology’s managing director, Cameron Henry, the financing offers sourcing flexibility, access to low-cost lending, and avoids dilution for shareholders. The funding aligns with Canada’s broader strategy to strengthen its position in the critical minerals sector, vital for clean energy technologies.
Brendan Yurik, CEO of Electric Royalties, which holds a 1.5% net smelter royalty on the Seymour Lake project, noted that EDC’s backing could accelerate its development and cement its role in Canada’s critical mineral supply chain. The project’s financing will be complemented by additional funding from a global lending base to secure construction capital.
In October, the Canadian government earmarked up to C$13.8 million ($9.6 million) from the Critical Minerals Infrastructure Fund (CMIF) for five projects in northwestern Ontario, including C$5.5 million ($3.8 million) to support Seymour Lake. This funding will improve infrastructure, such as upgrading 56 kilometers of roads and replacing three bridges near the project site, located 250 kilometers north of Thunder Bay.
The CMIF is part of a C$1.5 billion ($1.05 billion) fund dedicated to clean energy and electrification projects, alongside a broader C$3.8 billion ($2.7 billion) critical minerals strategy announced in 2022. This initiative aims to develop key minerals like lithium, cobalt, copper, and nickel for use in batteries, wind turbines, and solar panels as part of Canada’s efforts to combat climate change.
Green Technology’s shares on the ASX have experienced a significant drop over the past year, while Electric Royalties’ shares have shown modest gains. Despite market fluctuations, the Seymour Lake project represents a vital step in establishing Canada as a leader in critical mineral production.
