01:11 PM EDT, 09/18/2024 (MT Newswires) -- Canadian Premium Sand ( CLMPF ) , was last seen up 50% after the company on Wednesday said the Province of Manitoba and the Government of Canada may provide up to $272 million to support the company's integrated patterned solar glass manufacturing facility in Selkirk, Manitoba.

Manitoba intends to provide $72 million in non-dilutive financial support for the project, consisting of infrastructure investment and a low-interest loan, resulting in a reduction of approximately $32 million in capital costs for the project. The $40 million low-interest loan includes provisions for the company to earn forgivable portions of up to 10% of the loan over time.

Supplementing the support from the Province of Manitoba, Ottawa intends to provide financial support of up to $100 million towards this project.

The company will also seek an additional $100 million will be sought by CPS through the federal Indigenous Loan Guarantee Program with the potential to facilitate an ownership position in the CPS project for participating Indigenous groups.

The company also qualifies for existing provincial tax incentives and economic development programs that are estimated to total $60 million in benefits over the life of the project.

"Incorporating the combined financial support from the provincial and federal governments, the remaining total private capital required to fund construction of the project is reduced from $880 to potentially $608 million, the majority of which could come in the form of long-term debt," chief executive Glenn Leroux said in a release. "Having received the federal and provincial indications of financial support, we can advance our project financing with the goal of putting shovels in the ground in 2025."

The company's shares were last seen up $0.10 to $0.30 on the TSX Venture Exchange.

Price: 0.30, Change: +0.10, Percent Change: +50.00