Tough market conditions for lithium has forced a leading exploration outfit in northwestern Ontario to tighten its belt.
Green Technology Metals is suspending exploration activities, has cut staff, and will be delaying the release of a mine feasibility study for its flagship Seymour Project, a lithium-enriched spodumene deposit, near Armstrong.
In a July 9 “operational update,” Green Tech revealed it’s been in cash conservation mode for six months, but expressed hope these measures offer some financial flexibility to jump back into work when market conditions improve.
Mining media reports indicate the prices for battery materials, like lithium, are bottoming out due to global oversupply, stagnate investment, and policy uncertainty; leaving many proposed mine projects economically unviable.
The Australian explorer is one of four leading lithium players operating in the region alongside Frontier Lithium, north of Red Lake; Avalon Advanced Materials, outside Kenora; and Rock Tech Lithium, near Beardmore.
Green Tech has nine lithium properties in Northern Ontario, including its two leading projects, dubbed Root, north of Sioux Lookout, and Seymour, near the top end of Lake Nipigon. Together, the two projects contain a combined 30,000 tonnes of lithium. Seymour is the more advanced of the two.
How much this deferred work will impact Green Tech’s plans and timelines, the company didn’t explain except to say it’s still committed to its development strategy in Ontario, which includes a proposed refinery in Thunder Bay.
Critical “low cost” work will continue, the company said, to ensure Seymour moves toward completing its permitting work in cooperation with area Indigenous partners.
This was to be a pivotal year for Green Tech to finish the Seymour feasibility study, make an investment decision to build the mine, and put a financial package together to begin mine construction in early 2026 for an anticipated mid-2027 production start.
To keep costs under control, the company is suspending all exploration activity, has emptied out its field camps, is delaying or holding off on expenses for major cost items. Payment plans have been instituted with key creditors.
Some staff have been cut, leaving only those deemed essential for roles in permitting, technical and corporate development work. Senior management and directors have agreed to take a compensatory haircut.
"It’s been a challenging 12 months for the lithium sector, but our long-term strategy remains unchanged,” said managing director Cameron Henry in a statement.
“While market conditions have required us to slow down, we continue to have strong conviction in the quality of our assets, their location, and our vertically integrated approach in Canada, underpinned by tier-one strategic partnerships with EcoPro Innovation and other lithium focussed businesses.”
The company is the hunt for financing and intends to apply and tap into various federal and provincial government critical minerals funding pools that promote resource development.
Before last Christmas, Green Tech was one of the companies named by Export Development Canada to receive a letter of intent for access of up to $100 million in funding to be used at Seymour. Government support was contingent on the federal credit agency completing a due diligence process. No date’s been provided on when that process will be finished.
During this lull, Green Tech said it intends to review the exploration data on all its properties to determine if other valuable and overlooked minerals might be present that could add new value to its projects.
