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

Critical Elements Lithium (TSX-V: CRE) said on Monday that it has received a letter of support from a leading Canadian financial institution expressing interest in providing up to $115 million in long-term project debt 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 property is located in northern Québec’s Eeyou Istchee James Bay territory, within the province’s administrative region. The entire property spans more than 24,600 hectares and is geologically situated at the northeastern end of the Archean Lake Superior Province of the Canadian Shield.

In August 2023, Critical Elements released a feasibility study for Rose, outlining spodumene concentrate production. The study estimates 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% Li?O and 138 ppm Ta?O? 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.