Canadian miner Fortune Minerals (TSX: FT) secured a significant financial boost for its NICO critical minerals project, with both the Canadian and US governments contributing funding. The company’s stock price soared on the news.
Canada and US Partner on Critical Mineral Development
Fortune Minerals announced it will receive C$16.2 million ($12 million) in total funding, with C$7.5 million ($5.5 million) coming from Natural Resources Canada and $6.38 million awarded by the US Department of Defense. This funding represents a major win for the company and underscores the growing importance of critical minerals for both countries.
The NICO project is an advanced-stage development project located in Canada’s Northwest Territories. It encompasses an open-pit and underground mine targeting a deposit rich in cobalt, gold, bismuth, and copper. Fortune Minerals aims to establish a vertically integrated production process, building a hydrometallurgical refinery in Alberta to transform concentrates from the NICO mine into valuable products like cobalt sulfate, gold doré, bismuth ingots, and copper.
Funding Fuels Project Advancement and Strengthens North American Supply Chain
The funds will be used to advance engineering and test work on the NICO project, bringing it closer to production. This project aligns with the Canada-US joint action plan on critical minerals, aiming to bolster domestic production and reduce reliance on foreign sources. Fortune Minerals CEO Robin Goad emphasized the importance of this collaboration, stating that “bilateral Canadian and US government investment is important to align mineral production with changes in new technologies, ensure security of supply, and support North American industrial competitiveness.”
Fortune Minerals positions the NICO project as a key supplier of cobalt, a critical material for lithium-ion batteries used in electric vehicles and electronics. With the Inflation Reduction Act (IRA) in the US prioritizing domestic sourcing of critical minerals, the NICO project is well-positioned to benefit from this growing market. Additionally, the project holds significant reserves of bismuth, used in various industrial applications, and over 1 million ounces of gold, which can help mitigate price fluctuations of other critical minerals.
Fortune Minerals has already invested over C$137 million in developing the NICO project. They boast a positive feasibility study completed in 2014, with plans to update it this year. The company also secured environmental assessment approval and major mine permits, paving the way for construction. With this recent funding boost, Fortune Minerals is well on its way to becoming a major North American supplier of critical minerals, playing a crucial role in the clean energy transition.
Source: Mining.com
