Ontario funds up to $215K per early-stage project

Ontario is backing 68 early-stage exploration projects in new awards under a government funding program.

The financing, delivered through the Ontario Junior Exploration Program (OJEP), will cover up to half of eligible costs. Junior companies can claim as much as $215,000 (US$157,000) per project and prospectors up to $65,000, including support for Indigenous participation.

“To boost Canada’s self-reliance, Ontario is investing heavily in early exploration to build a pipeline for new mines and new jobs,” Energy and Mines Minister Stephen Lecce said in Sudbury on Thursday, according to prepared remarks. “Ontario’s new Critical Minerals Strategy will further double down on early exploration to lay the groundwork for the next generation of mines.”

The province said this month it’s updating its strategy by 2027 in a pivot to defence industries instead of electric vehicles after several battery plant projects stalled. In mining, Ontario is advancing Frontier Lithium’s (TSXV: FL; US-OTC: LITOF) $943-million capex PAK, Canada Nickel’s (TSXV: CNC; US-OTC: CNIKF) Crawford, and Kinross Gold’s (TSX: K; NYSE: KGC) Great Bear as part of the province’s one project, one approval process to streamline permitting.

Attract capital

Ontario opened the latest round of OJEP for applicants last July to build on $1.1 billion in total exploration spending by companies in 2024. The province says every $1 of public funding spurs more than $2 in private sector investment, proving the program attracts global capital.

“First Class Metals (LSE: FCM) has been proud to participate in the OJEP program for the past four years, and this support has made a meaningful difference,” Marc Sale, CEO of the London-listed firm, said in the provincial statement. “It is an investment in Ontario’s future as a global leader in responsible mineral exploration and development.”

In the province’s push for defence metals, it has added high-purity iron ore and aluminum to its list of critical minerals, extending the number to 35. It’s also backing Toronto’s bid to host an international bank tied to NATO defence contracts.

The government said last year it’s investing $500 million to create a Critical Minerals Processing Fund to financially support refining capacity and the provincial supply chain.