Quebec-based rare earth developer Torngat Metals on Tuesday announced C$165-million in combined financing for its Strange Lake rare earths project in Nunavik.

The company signed a C$110-million bridge loan facility with Export Development Canada (EDC) and secured a loan commitment of up to C$55-million from the Canada Infrastructure Bank (CIB) to fund preconstruction activities, including engineering and environmental studies necessary for permitting.

The Strange Lake project, Torngat said, was unique in that it contained significant quantities of light and heavy rare earths, particularly dysprosium and terbium, which were essential to permanent magnets and low-carbon solutions. 

The announcement comes as the G7 leaders, meeting in Canada this week, encouraged multilateral development banks and private lenders to mobilise more capital for critical minerals projects.

"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," said Torngat CEO Yves Leduc.

"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 president and CEO Alison Nankivell added that the organisation was proud to be a financing partner to Torngat Metals. "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."

CIB CEO Ehren Cory said that the bank’s involvement in the Strange Lake project was its first in the critical minerals sector. "Collaboration with the private sector to catalyse 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. Further, 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.

According to Torngat’s website, the project comprises three main components: a mine and concentration plant at the Strange Lake site, a nearly 180 km seasonal access road connecting the mine to a port facility at Voisey’s Bay in Labrador for ore transport, and a rare earth separation plant in Sept-Îles, Quebec, which will produce up to 15 000 t/y of rare earths.