en.Wedoany.com Reported - Natural Resources Canada (NRCan), through the "First Mile and Last Mile Fund" (FLMF), is providing up to CAD 1.38 million to Focus Graphite Inc. to advance the access road and power infrastructure planning for its Lac Knife graphite project in Quebec.
Focus Graphite Inc. (TSXV: FMS) (OTCQB: FCSMF) (FSE: FKC0) is a Canadian developer of high-grade flake graphite deposits, specializing in advanced graphite materials for battery, defense, and industrial applications. The company announced that it has signed a non-repayable contribution agreement with Natural Resources Canada, under which it will receive up to CAD 1,378,700 in non-dilutive federal funding. This funding will be directed to the company's flagship Lac Knife graphite mine in northeastern Quebec for the planning of critical transportation and energy infrastructure, under the project name "Lac Knife Graphite Mine Access Road and Hydroelectric Connection."
The funding will support engineering, environmental, permitting, community engagement, and feasibility study work for an all-season access road and a connection to the Hydro-Quebec grid, with the goal of advancing these infrastructure components to a construction-ready, shovel-ready stage. These pre-development activities are expected to de-risk future infrastructure development and propel the Lac Knife project toward construction, development financing, strategic partnerships, and operational phases.
This funding is part of the Canadian government's recently announced CAD 3.6 billion critical minerals investment plan, unveiled at the 2026 Prospectors & Developers Association of Canada (PDAC) convention. Central to this plan is the CAD 1.5 billion FLMF, aimed at advancing infrastructure that enables strategic critical mineral projects to become construction-ready, while strengthening domestic supply chains and supporting Canada's economic, defense, and national security objectives. The Lac Knife project hosts one of the highest-grade natural graphite deposits in North America and is a strategically important source of natural graphite for North American and allied supply chains, with its products serving as foundational materials for lithium-ion batteries, advanced manufacturing, energy storage systems, and defense and dual-use technologies.
Focus Graphite CEO Dean Hanisch stated that this funding recognizes the strategic importance of the Lac Knife project to North America's critical minerals supply chain. Focus Graphite Vice President of Corporate Development Jason Latkowcer noted that the funding will help move the Lac Knife project from planning to execution, and mentioned that early technical work has identified opportunities to improve access. A key component of the project includes collaboration with Indigenous communities, particularly with Innu Takuaikan Uashat mak Mani-Utenam. This collaboration involves establishing joint technical and steering committees, Indigenous workforce participation initiatives, skills development programs, and community consultation activities. Canada's Minister of Energy and Natural Resources, the Honourable Tim Hodgson, stated that the development of Lac Knife exemplifies Canada's new mining era, aiming to work sustainably with Indigenous peoples while advancing Canada's role as a global reliable supplier of critical minerals.
Under the agreement, NRCan will provide up to CAD 1,378,700, representing approximately 50% of the total eligible project costs, with Focus Graphite contributing matching funds. The funding will support feasibility studies, engineering studies, environmental baseline work, geotechnical and LiDAR surveys, stakeholder engagement, regulatory and permitting activities, and detailed infrastructure design. The project is scheduled to continue until March 2028.
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