Critical Elements secures up to $115m for Quebec’s Rose lithium project

Critical Elements Lithium (TSXV: CRE) said on Monday that a leading Canadian financial institution has expressed interest in providing up to $115 million in financing for the development of its Rose lithium-tantalum project in Québec.

Following the announcement, shares of Critical Elements Lithium surged 17.7% to C$0.58 by noon ET on the TSX Venture Exchange, bringing the company’s market capitalization to C$126.3 million ($88 million).

The Rose project is located in northern Québec’s administrative region, on the Eeyou Istchee James Bay territory. The entire property spans more than 246 sq. km and is geologically located at the northeast end of the Archean Lake Superior Province of the Canadian Shield. About 45 km to the southeast is the Whabouchi project being developed by Nemaska Lithium (TSX: NMX).

The project was issued its environmental certificate by the Quebec Minister of the Environment in late 2022, allowing Critical Elements to advance financing discussions to start construction.

In August 2023, the company released a feasibility study for Rose, outlining a potential spodumene concentrate producer of 17 years. The study estimated an after-tax internal rate of return (IRR) of 65.7% and an after-tax net present value (NPV) of $2.2 billion at an 8% discount rate.

The project will produce technical-grade spodumene concentrate for the glass and ceramics industry and chemical-grade spodumene concentrate for battery conversion in e-mobility applications, along with tantalite concentrate.

The mine is expected to extract 26.3 million tonnes of ore over its lifespan, with an average grade of 0.87% Li₂O and 138 ppm Ta₂O₅ after dilution. According to the company website, the processing plant will handle 1.61 million tonnes of ore per year, yielding an annual average of 203,765 tonnes of spodumene concentrates and 580 tonnes of tantalite concentrate.

Throughout the mine’s operational life, the open pit is expected to extract 182.4 million tonnes of waste rock and 10.9 million tonnes of overburden, resulting in an average strip ratio of 7.3 tonnes of waste per tonne of ore.