Torngat Metals secures $165M for rare earths project

Torngat Metals – a Quebec-based rare earth development company – has secured 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 advance the next phase of its Strange Lake project.

The Strange Lake project stands out for its significant deposits of light and heavy rare earths, especially dysprosium and terbium, which are critical to permanent magnets and low-carbon technologies. Torngat Metals will use the combined CA$165 million financing to execute key pre-construction activities, including engineering and environmental studies needed to submit permit applications for project infrastructure in Quebec and Labrador.

Yves Leduc, CEO of Torngat Metals, stated: "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. 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."

Alison Nankivell, EDC's president and CEO, said: "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. 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."

Ehren Cory, CEO of the Canada Infrastructure Bank, commented: "We are proud to partner with Torngat Metals to advance the Strange Lake project – our first in the critical minerals sector. 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."

EDC and CIB will release funds in phases, aligned with specific project milestones that include detailed engineering and ensuring environmental compliance. Torngat Metals plans to launch a limited recourse project financing later in 2025, aiming to complete the project financing before the end of next year.

Information about Export Development Canada is posted on www.Edc.ca. Information about the Canada Infrastructure Bank is available at www.Cib-bic.ca. Information about Torngat Metals is posted on www.TorngatMetals.com.