STRATEGIC RESOURCES: CANADIAN COMMODITIES HIDDEN GEM ON THE VERGE OF A BREAKTHROUGH

ON COURSE FOR THE OPERATIONAL BIG LEAGUES

In Germany, Strategic Resources shares have only been tradable for a few weeks. Yet the newcomer is already making a strong impression. That is because the Canadian company has something that is increasingly catching the eye of the mining industry's heavyweights: a fully permitted, ready-to-build project in the heart of Québec that combines three critical raw materials—high-grade iron ore, vanadium, and titanium. All three are considered indispensable for the decarbonization of the economy, for the defence industry, and for new battery technologies.

It is therefore no coincidence that Strategic Resources will be present at the Mining Investment Event in Québec City. Canada's most important mining conference begins today (June 1) with a golf tournament at the iconic La Tempête course, where participants can make initial contacts. Over the next three days, billion-dollar corporations such as Agnico-Eagle Mines and Equinox Gold will take turns presenting to a handpicked audience of institutional investors, sovereign wealth funds, and industry partners, alongside promising junior explorers such as Globex Mining and Power Metallic Mines. The fact that Strategic Resources has the opportunity at this exclusive, invitation-only event to engage in direct dialogue with the industry's heavyweights through private one-on-one meetings is something of a crowning achievement for the management team led by CEO Sean Cleary.

Lyndsay Malchuk of the IIF will moderate some panels at the Mining Investment Event in Québec City. You can find the most recent interview with CEO Sean Cleary of Strategic Resources below:

RARE GEOLOGICAL COMBINATION IN THE NORTH

At the heart of Strategic Resources is the so-called BlackRock Project, located about 700 km north of Montréal. There lies an ore reserve of nearly 128 million tons that contains not only iron oxide but also vanadium and titanium—a geologically unusual combination. However, the initial plan is not to build the mine itself, but rather a pelletizing plant at the deep-water port of Port Saguenay. There, imported ore will be processed into so-called iron pellets. These pellets are an indispensable intermediate product for modern steel production in electric arc furnaces, which emit significantly less carbon dioxide than conventional blast furnaces and whose share in global steel production is growing rapidly.

The rationale is simple: anyone who wants to produce steel in a climate-friendly way needs high-quality pellets. It is precisely these that are in short supply worldwide. While Canada could theoretically convert significantly more iron ore into such pellets than it currently does—the existing facilities are outdated, inefficient, and lack access to natural gas via pipeline, which is necessary for the industrial process. Strategic Resources solves this problem because Port Saguenay is the only location in Québec that offers both a deep-water port and a direct pipeline connection.

The planned annual capacity is 4 million tons of pellets. Estimated operating costs are an extremely competitive USD 16.31 per ton. Given the market prices achievable for high-quality DR-grade pellets of up to USD 175 per ton, this promises a substantial margin. The plant obtains the electricity it needs from Québec's state-run hydroelectric grid at an industrial rate of just a few cents per kilowatt-hour, which keeps both operating costs and the carbon footprint permanently low.

STRONG PARTNERS, GOVERNMENT BACKING

What sets this project apart from many comparable ventures are the investors already on board. The two largest shareholders—the renowned commodity fund Orion Mine Finance and Investissement Québec, the provincial government's investment arm—each hold approximately 41% of the company's shares. The provincial government is thus not only a shareholder but also an active supporter. It is financing a CAD 110 million conveyor belt system at the port as well as additional supply infrastructure worth CAD 170 million. In addition, Strategic Resources has signed a ten-year supply contract with the British commodities trader Javelin Global Commodities—including a committed working capital financing of USD 150 million.

Added to this is a second strategic foothold in Europe: the Mustavaara Mine in northern Finland. This mine was in operation between 1976 and 1985 and, at the time, accounted for approximately 10% of global vanadium production. The project is currently on hold but is rapidly gaining strategic importance as European demand increases. Proven and indicated resources total approximately 104 million tons. An earlier preliminary study calculated a net present value (NPV) of EUR 190 million at the time.

ENDING CHINA'S VANADIUM DOMINANCE

The geopolitical situation plays heavily in Strategic Resources' favour. Europe is vehemently seeking reliable supply chains for critical raw materials outside of China and Russia. In the steel industry, the shift toward climate-friendly electric arc furnaces—which are absolutely dependent on high-quality pellets—is accelerating in parallel. At the same time, North America and Europe are attempting to drastically reduce their dependence on strategic metals such as vanadium, currently still sourced from China for about 75%, to secure their own future and defence industries.

Strategic Resources addresses precisely this market gap. Of particular interest is a cooperation agreement signed in April 2026 with the US battery manufacturer Tyfast Energy. Together, they will examine whether the vanadium oxide mined in Québec can be incorporated into innovative high-performance batteries. These are considered particularly robust, fast-charging, and cold-resistant—ideal for heavy-duty mining vehicles and military applications. Strategic Resources would thus transition from a pure raw-material supplier to an integral part of a forward-looking battery value chain.

IN SEARCH OF FRESH CAPITAL

That sounds solid, but the company is still a developer, not a producer. Despite the funds already committed, additional capital is required for the large-scale BlackRock project. The start of construction depends on finalizing a larger loan package, which is still under negotiation. Société Générale is being mentioned as a potential arranger for a project financing volume of up to USD 300 million — an enormous sum for a company that currently has a market capitalization of just around CAD 16 million. Until then, Strategic Resources is drawing on its reserves, which stood at around CAD 2.3 million at the end of the last quarter. However, a capital increase is currently underway, in which up to 40 million new shares are to be issued at CAD 0.25 each—totalling up to CAD 10 million. A minimum volume of CAD 5 million is required to successfully close the round. New investors will also receive a three-year warrant with an exercise price of CAD 0.40, offering additional upside if the project progresses successfully.

On a positive note, despite the ongoing capital increase, the stock is holding steady on the Canadian stock exchange at roughly the issue price of CAD 0.25 and has not come under greater pressure. The stock is liquid on the TSX Venture Exchange in Canada. In Frankfurt, the stock—which is still relatively unknown in Germany—is currently trading at around EUR 0.15. Those looking to invest should pay close attention to trading hours and price fluctuations in Germany, which do not always accurately reflect the Canadian reference price.

BIG PLANS MEET A SMALL MARKET CAP

Those willing to take on the risk of extreme market tightness (only 8% of the shares are in free float) and the associated volatility have the chance to bet on a revaluation. This should occur as soon as the pending approval for capacity expansion to 4 million tons is granted, which is expected in the coming months. The company confirmed on May 26 that the approval process is on track by submitting its final responses to questions regarding the planned pelletizing plant to the Québec Ministry of the Environment. A November 2022 feasibility study for the entire BlackRock project showed a net present value (NPV) of nearly CAD 2 billion with a return of over 18%. Given the current market capitalization of around CAD 16 million, this represents a massive discrepancy—provided the project is actually built. This is precisely where the risk, and at the same time the potential, lies.

Just how actively management is pursuing investors became clear only recently. Immediately before the event in Québec, Strategic Resources presented at the renowned Current Trends in Mining Finance Conference (CTMF 2026) in New York. Together with its partner Tyfast Energy, the company discussed the memorandum of understanding signed in April to integrate Canadian vanadium directly into the US battery value chain for heavy industry and the military. In Québec City, the next opportunity now arises to demonstrate that this newcomer is already operating in a far higher league than its current valuation would suggest.