The funding will support two separate studies under the CSA's Lunar Surface Exploration Initiative, a programme linked to NASA's Artemis campaign aimed at establishing a long-term human presence on the Moon.
CSMC said its subsidiary, CSMC Nuclear, received $500,000 to examine lunar power generation and distribution systems and another subsidiary, CSMC Labs, received $500,000 to study lunar mining and resource utilization.
The studies will assess technical requirements, identify capability gaps and evaluate the economic benefits of Canadian participation in lunar infrastructure projects.
The work will be carried out over an initial 10-month period, with an option for an extended analysis phase.
According to the company, the studies will help shape Canada's future investments in lunar exploration and infrastructure.
"These awards represent a defining moment for CSMC and for Canada's ability to develop strategic technologies with both space and terrestrial applications, including defence," said Daniel Sax, chief executive officer and founder of CSMC.
The company said technologies developed for the Moon could also have applications on Earth, particularly in remote and harsh environments.
CSMC Nuclear's compact power systems are being designed for lunar operations but could eventually provide energy for military sites and remote northern communities.
Meanwhile, CSMC Labs plans to use advanced quantum sensing technologies to identify and map lunar resources.
The company said similar technologies could support critical mineral exploration, permafrost monitoring and infrastructure planning in Canada's Arctic.
The Lunar Surface Exploration Initiative is intended to identify areas where Canada can contribute to international lunar exploration efforts.
CSMC said the projects would be carried out with industry, research and Indigenous partners.
Founded in 2020, CSMC develops technologies focused on energy, resource development and national security through its subsidiaries CSMC Nuclear and CSMC Labs.