Mining projects dominate the investment prospectus Canadian Prime Minister Mark Carney will put before global investors in Toronto next week, reported to account for 63 of its 167 opportunities.
LithiumBank Resources (TSXV: LBNK; US-OTC: LBNKF) became the latest miner to confirm its place Friday. Its Boardwalk lithium brine project, 270 km northwest of Edmonton, is included in the 66-page booklet prepared for the Sept. 14-15 Canada Investment Summit.
“[Foreign investors] look at Canada as a stable jurisdiction,” Lance Rishor, head of Macquarie Capital in Canada, told The Miner last month. “They look at it as having a good endowment of resources. Generally speaking, there’s decent infrastructure.”
The summit is to test whether Ottawa can turn strong investor demand for Canadian mining equities into long-term financing for new mines and processing plants. Carney is seeking to generate C$1 trillion ($723 billion) of investment in Canada over five years.
Mining companies raised C$10.1 billion ($7.3 billion) on the TSX and TSXV in the year through July, three-quarters more than a year earlier, according to TSX data.
Mining slate
Mining and metals form the summit’s largest sector, according to CBC News, which obtained a copy of the leaked prospectus. The 63 projects compare with 31 in clean energy, 19 in advanced manufacturing and 16 in marine and port infrastructure. The booklet identifies each project’s development stage, capital needs and type of investment sought, according to reports.
At least eight publicly traded miners had confirmed projects in the book by Friday. Critical Elements Lithium (TSXV: CRE; US-OTC: CRECF) said its Rose lithium-tantalum project in Quebec was selected, while Canagold Resources (TSX: CCM; US-OTC: CRCUF) added its New Polaris gold-antimony project in northwestern British Columbia.
Thursday’s disclosures included E3 Lithium’s (TSXV: ETL; US-OTC: EEMMF) Clearwater lithium project in Alberta, FPX Nickel’s (TSXV: FPX; US-OTC: FPOCF) Baptiste project in central B.C. and Surge Copper’s (TSXV: SURG; US-OTC: SRGXF) Berg copper-molybdenum project in the province. Troilus Mining (TSX: TLG; US-OTC: CHXMF) confirmed its namesake gold-copper project in Quebec, while Focus Graphite (TSXV: FMS; US-OTC: FCSMF) said Lac Knife in Quebec was included.
The projects range from juniors still seeking partners to large developments approaching construction decisions. Surge’s June study outlined a 28-year mine at Berg producing an average 176 million lb. copper a year and carrying an after-tax net present value of $C4.6 billion at an 8% discount rate. Troilus this week put its project’s after-tax net present value at $3.2 billion at a 5% discount rate.
In Alberta, Boardwalk holds 5.2 million measured and indicated tonnes of lithium carbonate equivalent at an average 81.6 milligrams lithium per litre, plus 2.78 million inferred tonnes at 79 milligrams per litre. LithiumBank is assessing whether former oil wells, pipelines and other infrastructure in the depleted South Sturgeon Lake oilfield can cut development costs.
Leaked booklet
Ottawa has not made the prospectus public despite circulating it before the summit. The Prime Minister’s Office declined The Northern Miner’s request Friday for a copy.
“The prospectus was not shared by PMO or partnering groups,” a PMO media official said by email. “It appears to be leaks.”
Bloomberg News, which separately reviewed the document, reported about a third of it covers minerals and mining, including graphite, rare earths, gold and copper. It also mentions a proposal for Canada’s first uranium refining and conversion plant in more than 40 years.
Carney is hosting the summit with the Canada Pension Plan and Public Sector Pension investment boards. The Wall Street Journal reported investors attending the gathering oversee more than C$100 trillion in assets, giving Canadian developers access to pools of capital far larger than the domestic mining market can provide.
Capital test
Access, however, does not guarantee financing. Mining’s 75% surge in equity raising this year suggests capital is already available, but investors remain selective over project economics, permitting, infrastructure and construction risk.
Large pension and sovereign wealth funds, who seek assets capable of generating returns for decades, often baulk at investing in mines with finite lives. Processing plants may offer a better fit where governments want secure Western supplies of lithium, rare earths and other critical minerals.
