By Adriano Marchese
Imperial Metals shares rose Friday after the Canadian government committed 500 million Canadian dollars ($352.5 million) to support development of the Red Chris Block Cave project, an expansion of the Red Chris mine.
Shares rose 6% to C$7.46.
The funding, announced as part of the new Canada-British Columbia Cooperative Prosperity Agreement, gives the Red Chris joint venture a clearer path to construction of a long-life copper-gold block cave.
According to the federal government, the investment is expected to support a 15% boost to copper production, respond to critical minerals demand for clean energy and manufacturing, and reduce the mine's greenhouse gas emissions by over 70% once operational.
Newmont, the JV partner, is currently completing a definitive feasibility study for the project, which is expected to extend the Red Chris's mine life by about 14 years.
"It represents a significant opportunity to create long-term value for Imperial's shareholders, strengthen critical mineral supply chains, and deliver long-term benefits," the Vancouver-based miner said late Thursday.
Write to Adriano Marchese at adriano.marchese@wsj.com