Green Technology Metals (GTM) has received a non-binding letter of interest (LOI) from Export Development Canada (EDC) to finance the company’s Seymour lithium project in northwestern Ontario, Canada.
The LOI could lead to a direct lending debt funding package of up to C$100m ($69.5m), bolstering the project’s development within Canada’s critical minerals supply chain.
GTM has been in discussions with EDC since September 2024, providing key project details and preliminary financial models.
The project’s permitting approvals and final investment decision are expected to be completed in 2025.
The project is expected to start production in 2026 as Ontario’s first mine for battery metal.
Green Technology Metals managing director Cameron Henry said: “This marks the first step in our financing strategy for the Seymour project development and we’re pleased to have achieved this milestone in 2024. EDC’s support potentially increases sourcing flexibility, allows greater access to low-cost direct lending and is non-dilutive to GT1 shareholders.
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“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.”
EDC’s support is expected to offer flexible sourcing options and access to low-cost lending, and will not dilute the value for current shareholders.
The financing from EDC is subject to a thorough due diligence process, internal approvals, and standard project finance conditions, including an environmental and social review in line with EDC’s framework.
Following the appointment of financial adviser Endeavour Financial, the Seymour Project has attracted global commercial lenders, enhancing the project’s financial structure.
As a financial Crown corporation, EDC focuses on financing solutions for Canadian exporters and has completed over 540 transactions across various sectors, including mining.
