Northern Graphite obtains $6.22M for Lac des Iles mine
Executive Summary
- The Canadian government will provide a repayable, interest‑free contribution of up to C$6.225 million to fund 75% of eligible costs for extending the life of Northern Graphite’s Lac des Iles (LDI) mine.
- The funding enables Northern to avoid placing LDI on care and maintenance at end‑2025, begin pit extension work immediately, and target first production from new zones within 6–8 months.
- Repayment will start 36 months after project completion with 84 equal monthly instalments; the contribution supports Canada’s critical minerals strategy and Northern’s goal to increase annual capacity to 25,000 t of graphite concentrate.
Key Details
- Contribution amount: Up to C$6,225,000 (interest‑free, unsecured).
- Funding source: Natural Resources Canada (NRCan) via the Economic Development Agency of Canada for Quebec Regions (CED) under the Regional Economic Growth Through Innovation Program.
- Cost coverage: 75 % of eligible pit extension costs at LDI.
- Project impact: Prevents shutdown/maintenance of LDI by end‑2025; allows immediate commencement of pit extension work.
- Timeline: Groundbreaking as soon as possible; first production from new zones expected in ~6–8 months after start.
- Production capacity goal: Increase to nameplate 25,000 t per year (currently ~15,000 t).
- Repayment terms: Begins 36 months post‑completion; 84 equal monthly instalments.
- Resource basis: Extension relies on LDI resource estimate published Jan 2024, supporting life‑of‑mine extension and a shift to seven‑day‑per‑week mill operation.
- Strategic relevance: Aligns with Canada’s critical minerals strategy and growing demand for high‑purity flake graphite in industrial, defence, and battery markets.
- Future financing: Company is in discussions to finance the remaining 25 % of extension costs; expects an announcement soon.
Notable Quotes
“We are thrilled to receive this foundational support from the Canadian government which will help keep the mine in operation and continuing to supply our loyal customer base… LDI is the cornerstone of our growth strategy.” – Hugues Jacquemin, CEO, Northern Graphite Corp.
“This investment … will strengthen Canada’s domestic critical mineral supply chains, while positioning us as a global leader in the sector.” – Melanie Joly, Minister of Industry & Minister responsible for Canada Economic Development for Quebec Regions
“Canada is a global leader in providing responsibly sourced critical minerals… this strategic investment … will enable the production of these minerals and strengthen our economy and security.” – Tim Hodgson, Minister of Energy and Natural Resources