Cygnus Metals Advances Chibougamau Project with C$1.3M Critical Minerals Funding

Funding Boost for Critical Minerals Infrastructure

Cygnus Metals Limited (ASX: CY5; TSXV: CYG) has received conditional approval for up to C$1.3 million in funding from Canada’s Critical Minerals Infrastructure Fund (CMIF). This investment is earmarked to support pre-construction milestones at the company’s Chibougamau Copper-Gold Project in northern Quebec. The funding, pending final due diligence by Natural Resources Canada and the execution of a definitive contribution agreement, will primarily finance a feasibility study and environmental and social impact assessments (ESIA) necessary for critical infrastructure development.

The CMIF is a flagship program under the Canadian Critical Minerals Strategy, designed to accelerate clean energy and transportation infrastructure projects that underpin the supply of responsibly sourced critical minerals. Cygnus’ project, positioned as one of Quebec’s more advanced critical minerals ventures, stands to benefit from this strategic government support as it advances towards production readiness.

Strategic Infrastructure Development

The funding will specifically target infrastructure improvements including the construction of two-lane gravel roads and 25-kilovolt electrical powerlines. These are essential for connecting the underground mines at the Devlin and Corner Bay deposits to the central Chibougamau Processing Facility. Such infrastructure is critical to operational efficiency and environmental compliance, ensuring the project aligns with both economic and sustainability goals.

Ernest Mast, President and Managing Director of Cygnus Metals, highlighted the importance of this funding: "This funding approval recognises that our Chibougamau Copper-Gold project is one of the more advanced critical minerals projects in Quebec, Canada. Our projects are near to the town of Chibougamau, however there are ancillary infrastructure requirements, and this additional funding is very helpful for us as we progress towards the feasibility study."

Robust Project Fundamentals and Exploration Upside

The Chibougamau Project boasts high-grade mineral resources with measured and indicated resources totaling 3.6 million tonnes at 3.0% copper equivalent (CuEq), and inferred resources of 7.2 million tonnes at 3.8% CuEq. The project benefits from excellent existing infrastructure, including a local mining town, sealed highways, airport access, regional rail, and hydroelectric power availability. This infrastructure foundation reduces development risk and supports a clear pathway to production.

Cygnus is actively pursuing resource growth through ongoing exploration programs, aiming to expand the resource base and enhance project economics. The company’s hub-and-spoke operational model, centred on a 900,000 tonnes per annum processing facility, is designed to optimise resource utilisation and streamline production logistics.

Government Collaboration and Industry Context

The announcement coincides with broader government initiatives to invest over C$43 million in critical minerals projects across Quebec, reflecting a strategic push to secure supply chains for the green and digital economies. Cygnus’ participation in this funding round underscores its alignment with national priorities and the growing recognition of Quebec as a top-tier mining jurisdiction.

While the funding approval is conditional, the progress signals strong institutional confidence in Cygnus’ project and management team. The company’s transparent communication and adherence to rigorous environmental and social standards position it well within the evolving regulatory landscape.