Yellowknife will have a new homeless shelter later this year, providing a place for men and women to gather in the daytime when overnight shelters are closed.

Slated to open this fall as a three-year pilot project, the daytime shelter would serve as an alternative to downtown public buildings such as shopping malls and the library, where many homeless people go to stay warm.

Officials with the Northwest Territories government, the City of Yellowknife and BHP Billiton jointly announced more than $550,000 in funding for the day shelter at a news conference Monday.

The N.W.T. Health and Social Services Department is providing most of the funding, $375,000 over the life of the pilot project, while BHP Billiton is committing $150,000.

As well as providing shelter, the facility will offer support to people struggling with addictions and a washroom for people who don't have any other place to go during the day.

"It'll make a big difference. I think it'll keep me off the street and off the booze," said Terry Mandeville, who spends his nights at a Salvation Army shelter and walks the streets during the day.

"I've been trying every way to keep sober. The only way I could keep sober is by keeping myself busy. Having a place like that, that would be good."

The three funding partners say plans are underway to find a facility and service provider for the shelter.

Between 7 a.m. and 7 p.m. daily, many homeless Yellowknife residents currently wander inside downtown public places such as Centre Square Mall, especially when it's cold outside.

"There was really nothing more for them to do but walk from one end of the mall to the other of the mall. I don't think that was, you know, something that they look forward to every day, either, but compared to freezing out on the street, I guess that was the thing to do," said Shawnette McNeil, the mall's property manager.

"So it's a hard balance.… You don't want to kick them out, but you really can't have them hanging around all day long."

Bailey House, a transitional shelter for men, opened in December 2008. Several organizations run a number of other shelters and homes around the city.