Pioneer Lithium gets financial backing from Ontario government

Pioneer Lithium (ASX:PLN) has received a fresh shot in the arm from the Ontario government, which recently handed the company C$180,916 for its flagship Root Lake project in Canada.

The Australian explorer and developer said the funds were granted through the Ontario Junior Exploration Program (OJEP). The amount received represents a rebate of up to 50% of eligible exploration costs, capped at $200,000, incurred by the company at Root Lake between April 1, 2023 to Feb. 15, 2024, it said in the statement. 

“The OJEP program is a vital part of financing and fostering early exploration projects and allows us to further advance our exploration activities,” chairman Robert Martin said.

The company has been extending its footprint in Canada, where it now holds five exploration projects across the provinces of Ontario and Quebec.

Its most recent acquisition, the Benham project in northwest Ontario, became an instant hit for Pioneer. Bought in November, the company’s exploration team had by mid-January discovered numerous pegmatite outcrops including a 40-metre long mineralized prominence.

Lithium prices hit rock bottom last year and are struggling to make a significant recovery. This is partly because miners, refiners, and auto makers are still dealing with an excess stockpile that is causing the current oversupply of the battery metal. 

Despite some projects and mines being affected by the lithium price collapse, several major producers are determined to continue expanding, adding to the uncertainty about when prices will eventually recover.

THIS ARTICLE WAS FIRST POSTED ON MINING.COM