Torngat Metals, a rare earth development company based in Quebec, has secured a total of C$165m ($121m) in financing to advance its Strange Lake project in Nunavik, Canada.
This funding comprises a C$110m ($80.6m) bridge loan from Export Development Canada (EDC) and a loan commitment of up to C$55m ($40.3m) from the Canada Infrastructure Bank (CIB).
The Strange Lake project is noted for its substantial reserves of light and heavy rare earths, including dysprosium and terbium, which are critical components in permanent magnets and carbon-reducing technologies.
The combined financing will be utilised for essential pre-construction activities such as engineering and environmental studies necessary for permit applications in Quebec and Labrador.
The disbursement of funds from both EDC and CIB is structured around achieving specific project milestones, focusing on detailed engineering and adherence to environmental standards.
The CIB’s loan is contingent upon securing all regulatory permits.
EDC president and CEO Alison Nankivell 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.”
Torngat Metals plans to initiate limited recourse project financing later this year, aiming to conclude this process before the end of 2026.
Torngat Metals CEO Yves Leduc said: “I would like to thank EDC and the CIB for their confidence in our vision and for recognising 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.”
Rothschild & Co is serving as the financial adviser to Torngat Metals, with legal guidance provided by Sullivan & Cromwell and Stikeman Elliott throughout the bridge financing process. These advisors will continue their support during the upcoming project financing phase.
Situated near Lac Brisson, the Strange Lake complex features a 59-hectare open pit mine and a concentration plant designed to minimise material transport costs. Operations are projected to be low-cost with environmentally safe practices, including dry stack residue management and comprehensive water recycling facilities.
The proposed infrastructure further includes an airfield with a 1,500m runway. Current site development efforts encompass design and engineering collaborations with global partners, extensive baseline studies, land use assessments, and the commencement of environmental assessment processes.
Pre-feasibility and feasibility studies are scheduled for completion by the end of 2025, with production anticipated to start in 2028. Once operational, the site is expected to employ approximately 130 people, with recruitment initiatives focused on Indigenous communities in Quebec and Labrador.
