Caneris, a small ISP based in Toronto (Richmond Hill, but close enough), offers OpenVZ-based VPS:
http://www.caneris.com/VPS
They're primarily a DSL wholesaler, and they're pretty on the ball. Their hardware is colocated at 151 Front in Toronto.
Another is Canaca/Zazeen. They're the reverse, a hosting provider that started an ISP to take advantage of all the idle downstream bandwidth. Their prices are higher, and their reputation for customer service isn't as good as Caneris. They're hosted in Mississauga, and backhaul through their own fibre to 151 Front, where they hook up to the net.
http://canaca.com
http://www.zazeen.com/
Actually, this raises a good point; you don't actually need a VPS, since you just want a geolocated IP in Canada, you just need a VPN. Zazeen's $5/mth VPN would probably suffice for your needs, since you're not doing any hosting from there.
There are a bunch of other VPS providers in Canada, most of them are hosted at 151 Front in Toronto, iWeb in Montreal, etc.