Export Development Canada (EDC) has offered up to C$100 million (approximately $69.51 million) in financing to support Green Technology Metals, an Australian mining company, in advancing its Seymour Lake lithium project in the Ontario province.

Located in northwestern Ontario, the Seymour Lake project holds immense potential as a key source of lithium, a critical mineral essential for the burgeoning electric vehicle and renewable energy sectors. This project aligns perfectly with the Canadian government's ambition to establish robust domestic supply chains for critical minerals, crucial for the country's energy transition.

Green Technology Metals, which has seen its share price decline significantly over the past year, welcomed EDC's support. Managing Director Cameron Henry emphasized that this non-dilutive financing will enhance the company's flexibility in securing project funding and accessing low-cost direct lending.

The positive impact of this development extends beyond Green Technology. Brendan Yurik, CEO of Electric Royalties, which holds a 1.5% net smelter royalty on the Seymour Lake project, expressed optimism that EDC's involvement will accelerate the project's development and solidify its position within Canada's critical minerals supply chain.

This announcement follows the Canadian government's recent allocation of up to C$13.8 million through the Critical Minerals Infrastructure Fund (CMIF) to support five projects in northwestern Ontario. This funding, part of a broader C$1.5 billion initiative, aims to improve access to critical minerals and bolster Canada's clean energy sector.

Green Technology Metals is set to receive C$5.5 million from this CMIF allocation, which will be used to upgrade 56 km of roads and replace three bridges, crucial infrastructure for the Seymour Lake project's development.

The Canadian government's commitment to supporting critical minerals projects is evident through its comprehensive Critical Minerals Strategy, unveiled in 2022. This strategy, with a budget of C$3.8 billion, focuses on developing domestic resources of copper, cobalt, nickel, and other essential metals required for technologies like batteries, wind turbines, and solar panels.

The Seymour Lake project, backed by both federal and private financing, is poised to play a pivotal role in establishing Ontario as a significant player in the burgeoning lithium market. This development not only benefits Green Technology Metals and Electric Royalties but also strengthens Canada's position as a global leader in the production and supply of critical minerals essential for a sustainable energy future.

Green Technology Metals is an Australian mining exploration and development company focused on discovering and acquiring battery minerals projects. They hold a portfolio of lithium, copper, nickel, and PGE assets in Western Australia. Their key projects include the Kobe and Southern lithium prospects and the Whundo Copper project.