Executives at the company told Reuters that Canada's move to expand the investment tax credit for mining companies to align it with policies in the United States is accelerating financing talks for critical miners.

Prime Minister Justin Trudeau's government proposed a 30% investment tax credit for expenses related to exploring critical minerals in the latest budget announced last month. This incentive also covers investors planning to buy shares in some critical mining companies such as those involved in lithium brine exploration.

Company executives say the new measures will help attract new equity investors who have stayed away from the mining sector due to volatile capital market conditions. Early-stage exploration projects typically need between 10 million Canadian dollars (7.4 million dollars) and 25 million Canadian dollars, according to industry estimates.

Mark Selby, CEO of Canada Nickel Company Inc (CNC.V), said: "These provisions will be of great benefit in attracting investments."

Since the budget announcement, Selby said Canada Nickel's ongoing discussions about a potential partnership with an unnamed Korean battery maker have accelerated thanks to the specific measures. The TSX Venture Metals and Mining index has risen 4% (.GSPJX151040) since the budget, compared to a 2.7% increase in the broader market (.GSPTSE).

Canada is trying to match the incentives announced by the United States under the Inflation Reduction Act, which offers a mix of tax exemptions and government loans worth $40 billion to support critical mineral projects.

Canada is home to half of the world's mining companies and is viewed as a premier destination for junior miners to raise capital, according to the Toronto Stock Exchange.

Chris Dornbos, CEO of Alberta-based E3 Lithium (ETL.V), said the government's proposals open up a new funding option for junior miners in Canada that was not previously available. E3 Lithium is exploring lithium from brine solutions in Calgary.