Canada Growth Fund announces up to C$145 million investment to support the expansion of North American Lithium, Canada's largest operating lithium mine
MONTREAL, May 12, 2026 /CNW/ - Canada Growth Fund Inc. ("CGF") announced today its commitment to invest up to C$145 million by way of convertible notes in Sayona Inc. ("Sayona"), a wholly-owned Canadian subsidiary of Elevra Lithium Limited ("Elevra") (ASX: ELV) (NASDAQ:ELVR). The investment forms part of a ~C$4171 million capital raise, comprised of CGF's C$145 million investment and a ~C$2721 million common equity public offering (collectively, the "Transaction"). The Transaction will support a staged brownfield expansion of the North American Lithium mine ("NAL") in La Corne, a municipality in Abitibi, Québec.
Through this Transaction, CGF will support the continuity and expansion of Canada's largest operating lithium mine, reinforcing the resilience of the continental critical minerals supply chain. The Transaction will enhance cost competitiveness, increase production capacity, and reinforce NAL's long‑term role in the North American battery materials supply chain. Aligned with these objectives, CGF is supporting the continuity and growth of a critical Canadian battery-materials asset, crowding in private investment in Canada, and strengthening domestic critical minerals supply chains.
"One of CGF's core objectives is to capitalize on Canada's abundance of natural resources while supporting projects that mobilize private capital," said Yannick Beaudoin, President and Chief Executive Officer of Canada Growth Fund Investment Management Inc. ("CGFIM"). "By supporting the staged expansion of Canada's largest operating lithium mine, this proposed investment reinforces Canada's role in the North American battery materials value chain and supports jobs and industrial competitiveness in Québec."
"This financing supports our near-term expansion plan at NAL and positions the asset as a long-term growth platform," said Lucas Dow, Managing Director and Chief Executive Officer of Elevra. "CGF is providing important capital that helps de-risk the staged expansion and gives us greater certainty to deliver growth at NAL. We appreciate the continued focus on building a resilient North American lithium supply chain anchored in Québec."
Transaction Highlights
- CGF has committed to invest up to C$145 million through convertible notes issued by Sayona, a wholly-owned Canadian subsidiary of Elevra. The notes are convertible, at CGF's option, into shares of Elevra listed on the ASX.
- The investment forms part of a ~C$4171 million capital raise, alongside a ~C$2721 million common equity public offering.
- Transaction proceeds will support the staged brownfield expansion of NAL in La Corne, Québec, Canada's largest operating lithium mine.
- A portion of CGF's committed capital is contingent on Elevra meeting certain key milestones, including expansion de-risking and permitting progress.
- This project will support 252 jobs in the region.
About Canada Growth Fund
CGF is a $15 billion arm's-length investment vehicle designed to attract private capital to build Canada's clean economy. It uses investment instruments that absorb certain risks to catalyze private investment in low-carbon projects, technologies, businesses, and supply chains. Visit http://www.cgf-fcc.ca for more information.
About Canada Growth Fund Investment Management
In Budget 2023, the Government of Canada appointed PSP Investments, through a wholly owned subsidiary, to act as the asset manager for CGF. CGFIM serves as the independent and exclusive asset manager for CGF.
About Elevra
Elevra Lithium Limited is a North American lithium producer ((ASX:ELV, NASDAQ:ELVR) with projects in Québec, Canada, United States and Western Australia.
In Québec, Elevra's assets comprise North American Lithium (100%) and a 60% stake in the Moblan Lithium Project in Northern Québec. In the United States, Elevra has the Carolina Lithium project (100%) and in Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.
PSP Investments' Conflict of Interest Policy
PSP Investments has established a policy to address the risk of any real, potential or perceived conflicts of interest in the context of the services provided by CGFIM to CGF, requiring PSP Investments and CGF to disclose where they have overlapping investments.
At the time of the approval of the Transaction, PSP Investments had certain economic exposure to Elevra, representing less than 0.01% of the market cap of Elevra through externally managed funds with no governance or decision-making ability.
1 Based on an exchange rate of AUD/CAD of 0.9906. |
SOURCE Canada Growth Fund Inc.
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