Cerberus leads $50m investment in rare-earth miner Torngat Metals

• Rare-earth oxides are essential for a broad spectrum of low-carbon technologies, including electric vehicles and wind turbines
• The investment’s proceeds will enable the completion of a pre-feasibility study and a bankable feasibility study
• Hegemon Capital also invested in the deal

Torngat Metals, a Montreal-based rare-earth mining company, has secured a $50 million phased investment led by Cerberus Capital Management, a US alternative assets investment firm.

Hegemon Capital, a US private equity firm, also invested in the deal.

Torngat is developing the Strange Lake project in the Nunavik region of Quebec to provide a long-term supply of traceable and sustainably produced rare-earth products to support the transition to a low-carbon economy.

The investment’s proceeds will enable the completion of a pre-feasibility study and a bankable feasibility study, creating a path to the separation of specific rare earths by mid-decade, followed by mine site construction and production with project financing estimated at US$650 million. This is an important step to produce high-purity, rare-earth oxides that are essential for a broad spectrum of low-carbon technologies, including electric vehicles and wind turbines, the company said.

“Our Cerberus Supply Chain and Strategic Opportunities team is intently focused on strengthening the critical supply chains of the United States and its allies, especially Canada,” said Cerberus Co-CEO Frank Bruno in a statement. “This rare-earth project will help accelerate the ongoing transition to electrification, while supporting national security, sustainability, and economic interests in North America.”

Founded in 2015, Torngat is led by CEO Dirk Naumann.

GreenMet, a developer of sustainable supply chains for critical minerals and metals, Hegemon, and Zed Financial Partners provided support and expertise throughout the investment process.