Prairie Lithium secures C$6.3m Canadian financing for Saskatchewan production build
Jane Morgan Management
Key Facts:- Prairie Lithium has secured C$6.3 million in interest-free financing from the Canadian government's Business Scale-up and Productivity programme to fund the next construction stage of its Saskatchewan lithium project, with repayments scheduled to begin in 2029.
- The funding will support the purchase and installation of additional processing equipment and systems required for Phase 1, following the completion of the project's first well infrastructure, power infrastructure, and delivery of commercial-scale direct lithium extraction equipment.
- Phase 1 is designed to reach an annual capacity of 150 tonnes of lithium carbonate equivalent, produced in the form of lithium chloride, with a binding offtake agreement already in place with Hydro Lithium.
- Prairie Lithium is targeting first production of lithium brine from a commercial well in the fourth quarter of 2026, with pre-treatment, extraction, and concentration systems to be brought into operation progressively following commissioning.
- Executive Chairman Paul Lloyd highlighted Saskatchewan's position as host to Canada's highest-grade lithium brines and expressed gratitude for ongoing support from both federal and Saskatchewan governments in developing what he described as a world-class lithium project.
29 September 2026 – Perth, WA | Prairie Lithium (ASX: PL9) has secured C$6.3 million in Canadian government financing to fund the next stage of construction at its Saskatchewan lithium project, as it targets first production of lithium brine from a commercial well in the fourth quarter of 2026.
The interest-free financing, provided through the federal Business Scale-up and Productivity program, will support the purchase and installation of additional processing equipment and systems needed for Phase 1. Repayments are scheduled to begin in 2029.
The funding follows the drilling of the project’s first well infrastructure, installation of power infrastructure and delivery of its commercial-scale direct lithium extraction equipment. It gives Prairie Lithium support for the next stage of construction as the company moves towards commissioning.
Phase 1 is designed to reach an annual capacity of 150 tonnes of lithium carbonate equivalent, produced in the form of lithium chloride. Prairie Lithium has a binding agreement to sell Phase 1 production to Hydro Lithium.
Prairie Lithium Executive Chairman Paul Lloyd said: “We are very grateful for the support from the Canadian Government and this funding is a very important and additional step in the long-term encouragement and assistance that has been provided by the Federal and the Saskatchewan governments for this world class Lithium project.
Saskatchewan hosts the highest-grade lithium brines in Canada, and we are pleased to see this significant and ongoing Federal government support for the development of a major industry in Saskatchewan.
With funding and offtake agreements in place, we look forward to a very busy year of construction as we advance our project into production and contribute to the development of the Canadian lithium industry.”
Prairie Lithium’s next stated steps are to procure and install the remaining systems, advance Phase 1 commissioning and begin production of lithium brine from its first commercial well in Q4 2026. After commissioning begins, the company intends to bring its pre-treatment, extraction and concentration systems into operation progressively.
About us:
About the Prairie Lithium Project
PL9’s Prairie Lithium Project in Saskatchewan, Canada, is in one of the world’s top mining friendly jurisdictions.
The project has easy access to key infrastructure including electricity, natural gas, fresh water, paved highways
and railroads.
Contact details:
Paul Lloyd
Executive Chairman
Phone: +61 419 945 395
Email: [email protected]
Jane Morgan
Investor Relations, Jane Morgan Management
Phone: +61 405 555 618
Email: [email protected]