Latest news with #TorngatMetals
Globe and Mail
10 hours ago
- Business
- Globe and Mail
Torngat Metals raises $165-million in federal financing for Quebec rare earths mine project
Torngat Metals Ltd. is raising $165-million from the federal government as it attempts to put a rare earths mine and refinery into production in Quebec at a time when China's dominance of the sector is causing high anxiety for the West. Montreal-based Torngat said in a news release Tuesday that Export Development Canada has agreed to provide it with a bridge loan of $110-million, while Canada Infrastructure Bank will lend $55-million. The company plans to put the funds toward engineering work, environmental studies and early construction efforts to move along its Strange Lake project in the remote Nunavik region of northern Quebec. Canada currently has no rare earths mines and limited processing capabilities. China mines about 69 per cent of global rare earths and has a 95-per-cent share in processing. At this week's G7 summit in Alberta, leaders vowed to collaborate on securing better access to critical minerals within the G7 to counter the threat posed from overreliance on China. As retaliation for U.S. President Donald Trump imposing supersized tariffs on it earlier this year, the Asian superpower temporarily blocked exports of several rare earths to the United States, which disrupted manufacturing supply chains. Torngat plans to have a rare earths mine and concentration plant in Nunavik in operation in 2028. The last publicly available capital estimate for the project, which also includes a 180-kilometre road to transport ore to a port in Voisey's Bay, Labrador, and a separation and processing plant in Sept-Îles, Que., was $1.6-billion. 'We have a deposit that's incredibly rich in heavy rare earths, which you don't find outside China, and we're only three, four years away from being in operation,' said Torngat CEO Yves Leduc. Mr. Leduc declined to give specifics around the company's latest financial modelling but said that 'the economics are solid.' 'EDC wouldn't have provided us a loan, neither would CIB, if we hadn't been extremely compelling,' he said. The funding is a first for EDC, which historically has invested in companies only after engineering plans are finalized and project financing is largely lined up. Sven List, senior vice-president of Canadian corporate business at EDC, said the Crown corporation felt confident enough to make the investment in Torngat because it is so well capitalized. Torngat is privately held and majority owned by U.S. private equity firm Cerberus Capital Management. Torngat acquired Strange Lake from Quest Rare Minerals Ltd., which filed for creditor protection in 2017 during a deep slump in the rare earths market. Canada and the U.S. remain engulfed in a trade war in the aluminum, steel and automotive sectors, which is fuelling a push to wean Canadian industry off of American dependence. Prime Minister Mark Carney has vowed to expedite new national infrastructure projects such as mines and pipelines, a strategy that EDC is fully on board with in its funding of Torngat. 'This is really in line with Canada really going through a nation-building moment,' Mr. List said. The investment from Canada Infrastructure Bank is its first in the critical-minerals sector. Funds from the CIB loan will be put toward early works at the project, including expanding the airstrip, as well as work on roads, power and wastewater infrastructure, said John Casola, chief investment officer with CIB. While the early-stage nature of the company means there's a chance that Torngat might not be able to pay back its investment, Mr. Casola said the strategic importance of the project gave CIB some leeway to take that risk. 'We were created as part of our mandate at the CIB to take this kind of risk for projects of national importance,' Mr. Casola said. 'Things that we think have a great shared benefit for Canadians.' Both CIB's and EDC's loans are securitized against assets the company holds, including rights to the Strange Lake deposit and the land, Mr. Casola said. While Torngat's CEO is grateful that CIB and EDC have stepped up with financing, he said it has been difficult to get other Canadian investors on board. He's hopeful that given the urgency to develop North American supply chains of rare earths, more domestic investors, including Indigenous communities, will step up. 'Institutional investors have shied away from investing directly in mining opportunities because it's a risky business,' Mr. Leduc said. 'You need to build up the expertise to be able to get there.' Torngat plans to produce the heavy rare earths dysprosium and terbium, which are used in specialized magnets in the automotive and defence sectors.
Cision Canada
20 hours ago
- Business
- Cision Canada
EDC supports Canada's critical minerals sector with $110 million financing for Torngat Metals Français
Financing will support pre-construction activities for the Strange Lake project OTTAWA, ON, June 17, 2025 /CNW/ - Today, Export Development Canada (EDC) is announcing a $110 million bridge financing to Torngat Metals to support the next phase of its Strange Lake rare earth project. Anticipated to be one of the largest heavy rare earth deposits outside of China, the Strange Lake Project could play an important role in strengthening Canada's mining supply chain, while also creating jobs and enhancing Canada's global competitiveness. Once in operation, the project will employ approximately 450 workers, with a focus on Indigenous recruitment from Quebec and Labrador, fostering economic reconciliation and community-driven development. As part of the project, Torngat Metals aims to develop an open-pit mine site and concentration plant in Nunavik, along with a single-lane access road linking the site to Labrador and a separation plant. EDC's financing will support pre-construction activities, including engineering and environmental studies. This marks the first time EDC has extended financing to an early-stage mining project, reflecting its commitment to support the responsible development of the critical minerals sector in Canada and to contribute to the Government of Canada's Critical Minerals Strategy. The Canada Infrastructure Bank (CIB) is committed to provide a $55 million enabling infrastructure loan which will help upsize EDC's bridge loan facility to further advance the next stage of the project. With complementary financing capabilities, CIB and EDC are well-equipped to attract private sector investment and drive the growth of Canada's critical minerals infrastructure. "This is a first-of-its-kind transaction for EDC, reflecting our commitment to taking strategic risk for sectors of strategic interest. The well-capitalized nature of the Strange Lake project allowed us to seize the opportunity to do something unprecedented—providing early-stage financing for critical mineral development," said Alison Nankivell, EDC's President and CEO. "Canada is in a nation-building moment and EDC is proud to support this project, which could have a transformative impact on Canada becoming a reliable and responsible source of rare earth minerals." "Canada has the potential to bring a significant amount of critical minerals into production, supporting electrification, decarbonization, and national security," said The Honourable Maninder Sidhu, Minister of International Trade. "EDC's financing reinforces the Government of Canada's commitment to enabling sustainable and strategic growth for Canada's critical mineral development. The Strange Lake Project supports Canada's long-term vision for a secure and sustainable critical minerals industry, which is essential to the global energy transition." "We are pleased to partner with EDC to advance the Strange Lake project, a milestone in Canada's rare earth development," said Yves Leduc, Chief Executive Officer of Torngat Metals. "EDC's financing will allow us to move forward with essential pre-construction activities, contributing to the establishment of a responsible rare earth supply chain in Canada, which is vital for the global energy transition." EDC has a long-standing history of supporting Canada's mining industry, helping businesses across the minerals and metals supply chain. This project has the potential to boost Canada's global competitiveness in the international rare earth market. About EDC Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians. For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit
Cision Canada
20 hours ago
- Business
- Cision Canada
Torngat Metals secures $165 million in financing from Export Development Canada and Canada Infrastructure Bank Français
MONTREAL, June 17, 2025 /CNW/ - Torngat Metals Ltd., a Quebec-based rare earth development company, is pleased to announce the signing of a CA$110 million bridge loan facility agreement with Export Development Canada ("EDC"), and a loan commitment of up to CA$55 million from the Canada Infrastructure Bank ("CIB"), to support the next phase of its Strange Lake project. The Strange Lake project is unique due to its significant quantities of light and heavy rare earths, particularly dysprosium and terbium, which are essential to permanent magnets and low-carbon solutions. This CA$165 million of combined financing will enable Torngat Metals to carry out key pre-construction activities, including engineering and environmental studies, which are required to submit permit applications for project infrastructure in Quebec and Labrador. "I would like to thank EDC and the CIB for their confidence in our vision and for recognizing the strategic importance of Torngat Metals' rare earth project, which aims to establish a responsible rare earth supply chain in Canada, essential to the global energy transition," said Yves Leduc, Chief Executive Officer of Torngat Metals. "This financing comes at a critical juncture, as the Chinese monopoly of heavy rare earths drives the global permanent magnet shortage. Our partnership with these two renowned Canadian institutions will help us achieve key project milestones towards unlocking the largest supply by far of dysprosium and terbium outside China." "EDC is proud to be a financing partner to Torngat Metals as they advance the next phase of the Strange Lake mining project. It's a reflection of our commitment to supporting the development of Canadian rare earth minerals, a national strategic priority," says Alison Nankivell, EDC's President and CEO. "This early-stage bridge loan facility is a first for EDC and the financing will be used by Torngat Metals to undertake essential pre-construction work. We look forward to building on this partnership as part of our broader support to the Canadian mining and mining supply sector." "We are proud to partner with Torngat Metals to advance the Strange Lake project – our first in the critical minerals sector," says Ehren Cory, CEO, Canada Infrastructure Bank. "Collaboration with the private sector to catalyze investment in rare earth mineral deposits and advance nationally significant projects will strengthen Canada's position in the global export markets." Funds from both the EDC and CIB will be released in phases, aligned with specific project milestones that involve detailed engineering and environmental compliance. Additionally, Torngat Metals intends to launch a limited recourse project financing later in 2025, with the intention of completing the Project Financing before the end of next year. Rothschild & Co acted as financial advisor to Torngat Metals, with Sullivan & Cromwell LLP and Stikeman Elliott LLP acted as legal counsel with respect to bridge financing. These advisors continue to advise Torngat on the Project Financing. About EDC Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians. For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit About the Canada Infrastructure Bank The Canada Infrastructure Bank (CIB) invests in revenue-generating infrastructure which benefits Canadians and attracts private capital. The CIB is a catalyst for private investment in projects that support economic growth. The CIB is working on investment opportunities, from coast to coast to coast, which reflect our priority sectors for investment – green infrastructure, clean power, public transit, trade and transportation and broadband infrastructure About Torngat Metals Ltd. Torngat Metals is a private company based in Canada working to develop the Strange Lake Rare Earth Project to responsibly supply rare earth elements required for high-tech and low-carbon solutions. With development activities in Quebec, Newfoundland, and Labrador, the company aims to be a globally recognized supplier of light rare earths and a global leader in solving the heavy rare earth supply crisis for dysprosium and terbium. Leveraging robust partnerships with Indigenous peoples and local communities, new approaches to minimizing environmental impacts, and cutting-edge engineering, Torngat Metals looks forward to playing a pivotal role in the global transition to clean energy. Learn more at
