10:46 AM EST, 11/17/2025 (MT Newswires) -- Algoma Steel Group ( ASTL ) up 1.8% on last look, said Monday it has completed its $500 million financing transaction with the Federal and Ontario governments.

The financing includes $400 million (including an $80 million secured tranche) from the Canada Enterprise Emergency Funding Corporation and $100 million (including a $20 million secured tranche) from the Ontario government. Algoma expects to draw from the secured tranche first.

The seven-year facilities provide financial flexibility as the company advances its electric arc furnace (EAF) transformation and works to diversify its business, a statement said.

Algoma has also issued 6.8 million share purchase warrants to CEEFC and Ontario proportionately, with each 10-year warrant being exercisable for one share at $11.08.

"Completing this financing reinforces our strong partnership with both levels of government and supports our ability to navigate current market conditions as we complete our EAF transition," said chief executive Michael Garcia. "This support provides Algoma with long-term financial flexibility. We are grateful for the government's confidence in Algoma's future as a low-carbon steel producer."

Algoma shares are up $0.09, to $5.10, on the Toronto Stock Exchange.

Price: 5.09, Change: +0.08, Percent Change: +1.60