MONTRÉAL, QUÉBEC – Critical Elements Lithium Corporation (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) (“Critical Elements” or the “Corporation”) is pleased to announce that it has been conditionally approved for up to $20 million funding from the Government of Canada to relocate 4.2 kilometres of power transmission line infrastructure and build a new electrical sub-station to supply Critical Elements’ Rose Lithium-Tantalum Project in Eeyou Istchee James Bay, Québec (the “Rose Lithium-Tantalum Project”).
This funding comes from the Critical Minerals Infrastructure Fund (the “CMIF”), Natural Resources Canada’s flagship program under the Canadian Critical Minerals Strategy to support transportation and clean energy infrastructure projects needed to increase the supply of critical minerals in Canada, as well as the development of national and global value chains in support of a green and digital economy. Subject to final due diligence, settlement of definitive documentation, and other customary conditions, Natural Resources Canada has approved a conditionally repayable funding of up to $20 million under the CMIF for this infrastructure project that will support the development of Rose Lithium-Tantalum Project.
Jean-Sébastien Lavallée, CEO of Critical Elements, expressed his excitement about this funding during this important phase of the Rose Lithium-Tantalum Project: “On behalf of Critical Elements Lithium Corporation and its shareholders, I would like to thank Natural Resources Canada and Innovation, Science and Economic Development Canada, and Quebec’s Ministry of Natural Resources and Forests for their support of the Rose Lithium-Tantalum Project. Critical Elements Lithium has been steadily advancing and derisking the Rose Lithium-Tantalum Project and the provision of these funds is an important step in this process. We would also like to note the importance of our strong relationship with our Cree neighbours, embodied by the Pihkuutaau Agreement of July 2019 and based on mutual trust and respect, resulting in a sustainable development approach. It is clear from our ongoing discussions with end-users of the high quality spodumene concentrate to be produced from the Rose Lithium-Tantalum Project, that a great value is placed on the demanding standards of sustainability and governance honed by the rigorous permitting processes at the Provincial and Federal levels, as well as our relationship with the Cree. We remain confident that our Nation’s natural resource endowment, high standards of production, and proximity to two of the most important global markets, will support our drive to be an industry leader in the ongoing global energy transition.”
“This project, under the Canadian Critical Minerals Strategy, will help expand Quebec’s sustainable critical minerals production, notably rare earths that are used in electronics, clean energy, aerospace, automotive and defence”, said the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources Canada. “Developments like this help mines get built faster, and they are a key element in seizing the generational opportunity before us. The Government of Canada is supporting projects that strengthen Canada’s supply chains, enhance our ability to be a reliable supplier of the critical minerals the world is demanding and foster economic growth while creating good jobs.”
This support and funding from the Government of Canada reflects the importance of Indigenous engagement and collaboration in developing key infrastructure in Northern Québec. It also recognizes the role this infrastructure project will play in supporting Critical Elements’ vision to become a large-scale, sustainable and reliable supplier of lithium for the emerging electric vehicle and energy storage industries through valuable partnerships with the Corporation’s stakeholders based on care, respect, accountability, integrity & collaboration to the growing EV and energy storage markets.
About Critical Elements Lithium Corporation
Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly-owned, high-purity Rose Lithium-Tantalum project in Québec, the Corporation’s first lithium project to be advanced within a land portfolio of over 1,050 km2. On August 29, 2023, the Corporation announced results of a new Feasibility Study on Rose for the production of spodumene concentrate. The after-tax internal rate of return for the Project is estimated at 65.7%, with an estimated after-tax net present value of US$2.2B at an 8% discount rate. In the Corporation’s view, Québec is strategically well-positioned for US and EU markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 94% hydroelectricity. The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government, received the Certificate of Authorization pursuant to section 164 of Québec’s Environment Quality Act from the Québec Minister of the Environment, the Fight against Climate Change, Wildlife and Parks, and the project mining lease from the Québec Minister of Natural Resources and Forests under the Québec Mining Act.
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