Fresh from receiving a $23 million cash infusion from the Ontario government, Starz Animation Toronto has secured a $12 million financing deal with the Royal Bank of Canada to interim finance local tax breaks on behalf of Hollywood clients.

The five-year deal will enable the Toronto studio to pass savings on to studios and indie producers that subcontract their computer animation to Starz, which opened in 2007 and has since completed five animated features, including this year’s 9 for Focus Features and Tim Burton.

The loonie may be surging in value compared to the U.S. dollar, but Starz studio head David Steinberg says producers can still secure up to 45% in immediate production cost savings on a typical $20 million animated feature by tapping the federal and Ontario film tax credit and the province’s digital animation tax credit – and banking the refunds with the RBC.

The Toronto studio, now employing around 300 CGI artists, is currently at work on Gnomeo & Juliet, an animated feature for Miramax Films and Elton John’s Rocket Pictures, and the CBS Christmas special Yes, Virginia, set to air Dec. 11.