Green Technology Metals scores potential C$100m financing for Seymour

GT1 secures LOI with Export Development Canada for up to C$100m funding
Seymour project in line to become Ontario’s lithium producer
Financing arrangements to be finalised in 2025

Special Report: Green Technology Metals has secured a letter of interest from Export Development Canada to potentially provide up to C$100 million in project financing for the company’s Seymour lithium project.

It’s a significant show of support from Canadian authorities for what would be the first lithium mine in the province of Ontario and second in the country after Sayona and Piedmont’s North American Lithium site in Quebec.

Seymour contains a JORC 2012 resource of 10.3Mt at 1.03% Li2O, but including the nearby Root project, GT1 boasts 24.9Mt at 1.13% Li2O. Exploration could grow the bounty further, with recent drilling returning high grade results from Despard, a prospect 20km east of Seymour.

EDC, a self-sustaining financial crown corporation owned by the Government of Canada, specialises in providing financing solutions for Canadian exporters.

The letter of interest includes potentially providing a direct lending debt funding package of up to C$100 million, and complements strong interest from other global commercial lenders along with some C$5.47m ($6.05m) already secured in Canadian government infrastructure funding for road and bridge upgrades.

The company says this all amounts to a robust foundation for a diversified financing structure, solidifies the project’s role in Canada’s critical minerals supply chain and reinforces Seymour’s trajectory to become Ontario’s first lithium producer.

Work is currently underway on a definitive feasibility study, with an investment decision due early in 2025 alongside permitting and approvals.

Final investment decision next year

The potential financing by EDC is contingent upon the successful completion of its rigorous due diligence process, including an environmental and social review, securing all necessary internal approvals and meeting typical project finance conditions.

Green Technology Metals (ASX:GT1) is committed to advancing discussions as part of its financing strategy for Seymour, which will proceed in parallel with ongoing Indigenous consultation, permitting approvals and the project reaching a final investment decision, with completion expected in 2025.

“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,” GT1 managing director Cameron Henry said.

“EDC’s support potentially increases sourcing flexibility, 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.

“As a Canadian company, EDC’s potential support highlights the Seymour project’s significance to Canada’s critical minerals strategy.

“Additionally, Government backing provides significantly lower cost of capital than traditional debt financing and demonstrates additional confidence in clean lithium technology.”

On the path towards production

“Looking ahead to 2025, GT1 is well-positioned with world-class partners, a solid financing framework and exciting project developments that bolster our confidence in continuing to advance our Ontario strategy,” Henry said.

“We look forward to working with EDC and progressing with the due diligence and approval process.”

The company is continuing its maiden drilling at the ~109km2 Junior lithium project – picked up last year – in the belief that it will deliver long-term feed to the planned Seymour concentrator.

The first four holes have been returned from a 6900m maiden diamond drilling campaign, with a best hit of 18.7m at 1.39% Li2O just 8m deep at Despard – a 700m long target – demonstrating its potential as a third resource hub.

This article was developed in collaboration with Green Technology Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.