Exploration and development company Canadian Manganese Company (CMC) and financial services company GreenMet have announced the execution of a strategic development and capital formation letter of intent, appointing GreenMet as the exclusive strategic development and capital formation partner for the North American Critical Manganese Alliance (Nacma).

Under the terms set out in the letter of intent, GreenMet will lead the development and execution of a comprehensive strategic capital and partnership initiative targeting up to $1-billion in long-term capital commitments to support the phased development of Nacma.

The initiative is expected to encompass the development of the Woodstock project, in New Brunswick, Canada, the construction of a Canadian hydrometallurgical processing platform, the establishment of downstream specialty processing and advanced manufacturing capabilities in the US and the future expansion of the integrated North American manganese supply chain.

Unlike a traditional project financing mandate, the companies in a joint media release note that GreenMet's appointment reflects a broader strategic role encompassing capital formation, industrial partnerships, government engagement, commercialisation and long-term platform development.

The targeted capital programme is intended to support multiple phases of development across the Nacma platform.

The parties anticipate evaluating a broad range of capital sources including strategic industry participants, institutional investors, infrastructure funds, export credit agencies, government-supported financing programmes and other long-term capital providers.

CMC president and CEO Matthew Allas says GreenMet's appointment represents an important milestone in the company’s strategy to develop Nacma as an integrated North American industrial platform.

“Our objective extends well beyond financing a mining project. We are creating a strategic critical minerals platform that combines world-class Canadian resources with advanced North American processing and manufacturing capabilities.

“GreenMet brings the strategic development expertise required to coordinate capital, industrial partnerships and government engagement necessary to realise that vision,” says Allas.

"We are pleased to be selected as the strategic development and capital formation partner for Nacma.

“Our mandate is to coordinate a comprehensive capital and partnership strategy capable of supporting the long-term development of what we believe can become North America's premier integrated manganese supply chain.

“The targeted capital programme of up to $1-billion reflects the scale of the opportunity and the long-term industrial platform envisioned by the parties,” adds GreenMet CEO Drew Horn.

The parties explain that they intend to pursue a phased capital programme that may include strategic equity investments; project financing; government-supported funding; export credit financing; infrastructure capital; industrial partnerships; original-equipment manufacturer participation; and institutional investment.

The capital initiative will be structured to maximise long-term strategic alignment while supporting phased development of Nacma's Canadian and US operations.