PMET Resources (PMET.TO) on Tuesday said it received non-binding commitments from Canada and a German bank for financial support to develop its Shaakichiuwaanaan lithium project in northern Quebec.
The company said it received letters of support from Canada's Export Development Bank and Germany's KfW IPEX-Bank ahead of an updated feasibility study for the project, expected by year end.
"These letters of support represent an encouraging step in establishing early institutional alignment around the project as we position Shaakichiuwaanaan for broader project financing. We look forward to continuing to work constructively with these institutions alongside our broader financing and strategic engagement activities," chief financial officer Natacha Garoute said in a release.
PMET said the letters of support from the two institutions will be followed by due diligence, reviews and financing discussions as it looks to confirm financing for the project, which would develop one of the world's largest lithium deposit along with a significant tantalum and caesium resource.
"Shaakichiuwaanaan continues to stand out as one of the most strategically positioned critical mineral projects globally, underpinned by its scale, premier jurisdiction, infrastructure advantages and multi-commodity critical minerals potential," chief executive Ken Brinsden said.
The company said it also received an additional letter of support from an unnamed Canadian financial institution that has launched a preliminary assessment of the project ahead of an investment decision.
PMET shares closed down $0.55 to $6.78 Friday on the Toronto Stock Exchange.