The Ontario government has announced C$13 million in funding through its Ontario Junior Exploration Program (OJEP) to support early stage exploration efforts by 84 junior mining companies across the province.
The funding forms part of Ontario’s broader strategy to enhance mineral exploration as the province aims to identify new mineral deposits and foster economic growth in its northern and Indigenous communities.
Launched in 2021, OJEP offers grants covering up to 50 percent of eligible costs for junior mining companies undertaking exploration projects, up to a maximum of C$200,000 per project.
A key focus of OJEP is critical minerals, a category that includes nickel, copper, cobalt and platinum-group elements.
The program is now in its fifth round, and the C$13 million will go to 84 projects, with 62 focused on critical minerals exploration owing to the province’s growing priority for resources essential to advanced manufacturing and technology.
The program consists of two streams: a critical minerals stream and a general exploration stream.
The critical minerals stream prioritizes projects with primary or secondary exploration targets focused on minerals classified as critical in Ontario. Primary target projects receive priority funding, followed by secondary target projects if resources remain available. If funding is fully allocated under the critical minerals stream, any remaining projects automatically qualify for consideration under the exploration stream, which focuses on other minerals.
To qualify for OJEP, junior mining companies must meet specific eligibility criteria, including a market capitalization of less than C$100 million, or a comparable valuation for private companies. Applicants must also be registered on the Ontario Business Registry and propose exploration activities on new or previously unexplored mineral targets.
Other administrative requirements include a valid certificate of insurance, enrollment in the Mining Lands Administration System and, if needed, a valid exploration plan or permit as required by Ontario’s Mining Act.
George Pirie, Ontario’s minister of mines, hailed the initiative as a key step in bolstering the provincial economy.
“(OJEP) is helping unlock the province’s mineral exploration potential and paving the way for the development of the mines of the future which will bring multigenerational opportunities to northern and First Nation communities,” he explained in a Tuesday (November 12) press release.
Stephen Crawford, Ontario’s associate minister of mines, also highlighted the importance of securing critical minerals for Ontario’s supply chain, particularly in light of global shifts toward electrification and renewable energy technologies.
“Our government will continue attracting investment so new mines can be found, creating multi-generational prosperity and wealth for communities across the province,” he remarked.
Under OJEP, Ontario has committed a total of C$35 million over four years to support mineral exploration.
This funding includes C$23 million directed toward general mineral exploration, while an additional C$12 million is earmarked specifically for critical minerals.
OJEP also provides additional support for Indigenous communities, allocating up to C$10,000 per project to cover the full cost of eligible expenses specifically related to Indigenous employment and business opportunities.
The funding is intended to ensure that Indigenous communities share in the economic benefits of exploration activities and to foster partnerships between mining companies and Indigenous businesses.
Overall, the province’s mineral sector provides significant contribution to the province’s economy, supporting 77,000 jobs and generating over C$10 billion in mineral production value in 2020 alone.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.