Foran Mining (TSXV:FOM,OTCQX:FMCXF) has signed a contribution agreement with the Canadian government’s Strategic Innovation Fund (SIF), securing up to C$41 million for its McIlvenna Bay project in Saskatchewan.
McIlvenna Bay, located west of Flin Flon, Manitoba, contains copper, zinc and other critical minerals, and is positioned to be a key resource for Canada’s growing demand for domestically sourced metals.
With indicated resources of 39 million metric tons grading 2.04 percent copper equivalent, Foran expects the asset to contribute significantly to the country’s critical minerals supply chain.
The SIF funding consists of both repayable and non-repayable contributions, to be allocated toward eligible project costs incurred by the company before December 31, 2026. Foran plans to use the money to integrate battery-electric vehicles, water recycling systems, heat recovery systems and pyrite removal in mine tailings as part of its operations.
The company is also working on remote operations and on-demand ventilation technologies.
SIF, which is managed by Innovation, Science and Economic Development Canada, provides financial support for projects aligned with Canada’s industrial strategy. The fund aims to attract large-scale investments, support business growth and advance projects that contribute to Canada’s long-term economic objectives.
“Our government is committed to a net-zero future for Canada, and this project is precisely the investment we need to secure Canada’s position as a global leader in clean technologies and responsibly sourced mineral products,” said François-Philippe Champagne, Canada’s minister of innovation for science and industry, in a statement.
Further, Jonathan Wilkinson, the country’s minister of energy and natural resources, highlighted McIlvenna Bay’s role in supporting Saskatchewan’s domestic mineral production and economic development in a carbon-neutral manner.
“Foran’s McIlvenna Bay mining project alone will support over 400 jobs and reinforce Saskatchewan’s position as a global mining leader by producing more Canadian copper and zinc to supply our own needs and those of our allies,” he said.
McIlvenna Bay is part of the broader Hanson Lake District, where Foran is advancing additional exploration activities. The company has a multi-phase development plan, and intends to integrate new mining technologies across its operations.
SIF’s financial support for Foran is based on eligible costs of C$263 million, with C$226 million allocated within Phase 1 of McIlvenna Bay’s capital budget.
Ontario signs deal to ‘unlock’ Ring of Fire’s potential
Foran’s cash infusion aligns with ongoing federal and provincial efforts to strengthen Canada’s domestic critical minerals supply chains. Also this week, Ontario signed a shared prosperity agreement with Aroland First Nation to advance infrastructure development in the province’s Ring of Fire area.
The deal includes funding for upgrades to Anaconda Road and Painter Lake Road, two key routes that will connect to the province’s planned road network linking First Nations communities and mineral development projects.
The province has also committed C$70 million for planning the Greenstone Electricity Transmission Line, which will support future industrial expansion and reduce reliance on diesel power in the region.
The shared prosperity agreement with Aroland First Nation also includes C$20 million for community infrastructure projects and C$2.27 million for business development planning. Ontario Premier Doug Ford emphasized that developing the Ring of Fire is a strategic priority as Canada currently faces global trade uncertainties.
“With the risk of US tariffs, it’s never been more important for us to work together to do everything possible to keep our economy competitive. At the top of the list is unlocking the economic potential of the Ring of Fire region,” he said.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.