Canadian export credit agency Export Development Canada (EDC) has doubled its indicative debt financing commitment to ASX-listed critical minerals developer Queensland Pacific Metals (QPM) for the TECH project to A$400-million.

EDC’s interest, expressed through the non-binding letter of interest to avail the funds, relates to potential equipment and services supply from Canadian companies for the construction of the TECH project, which is located 40 km south of Townsville, Queensland, at the Lansdown Eco-Industrial Precinct.

QPM MD and CEO Dr Stephen Grocott says the company is satisfied with the response received to date from financiers, in particular the EDC, and its willingness to consider debt funding for the TECH project.

EDC’s financing is subject to the successful completion of its due diligence process and typical project finance conditions such as security, debt serviceability and equity financing.

In conjunction, export financier Australian government agency Export Finance Australia (EFA) and infrastructure development financier Northern Australia Infrastructure Facility (NAIF) have continued financing discussions with QPM – both for finance deals of up to A$250-million.

QPM says its TECH project aligns with the objectives of the Australian government’s Critical Minerals Strategy – to diversify global critical minerals supply and capture more value from the global critical minerals value chain.

“Our strategy has been to target government-backed lending agencies and we greatly appreciate the indicative support received to date. We look forward to advancing through due diligence and through to credit approvals,” he says.

NAIF has previously advised QPM that the project has passed the strategic assessment phase of the application process and is now in the due diligence stage.

EFA has already assessed the TECH project, reporting that it meets the agency’s mandate to provide financial expertise and solutions to support Australian businesses across a variety of industries, including critical minerals.

EFA is now undertaking QPM and its debt adviser KPMG Corporate Finance continues to progress discussions with other lenders including K-Sure, which has previously provided a letter of interest.

Export credit agency Korea Trade Insurance Corporation has a memorandum of understanding in place with EFA to strengthen their capacity to work together and undertake joint financings.