PERTH (miningweekly.com) – ASX-listed Queensland Pacific Metals (QPM) has announced a A$30-million capital raise and conditional finance support from Export Finance Australia (EFA) for up to A$250-million of debt funding for its TECH project, in Northern Queensland.
QPM on Wednesday told shareholders that it would raise A$30-million through the placement of 187.5-million shares, at a price of 16c each, to institutional and sophisticated investors.
Funds raised will go towards completing the definitive feasibility study at the TECH project, as well as high purity alumina feasibility and test work, exploration at Sewa Bay to delineate a maiden resource, and to fund detailed engineering and vendor engagement, and corporate costs.
“We are delighted with the support for the placement and welcome a number of highly credentialed Australian and offshore institutional investors to the register. On behalf of the board, I would also like to thank our existing shareholders for their ongoing support. The funds from this placement support the next stage in our development, completion of the definitive feasibility study DFS, test work & engineering and environmental and social governance (ESG) initiatives,” said QPM MD Dr Stephen Grocott.
“We look forward to putting investors’ funds to work creating a path towards the development of a battery materials production facility that boasts global leading ESG credentials, a vital ingredient for the western EV sector.”
Meanwhile, QPM on Wednesday also announced that it had received conditional finance support from EFA to secure up to A$250-million in debt funding for the TECH project.
EFA will commence a detailed due diligence on the project.
“I am delighted by the support for the TECH project being shown by the Australian government, both through the EFA and through North Australian Infrastructure Fund. When combined with the strong interest shown from commercial financiers, we have an increasing level of confidence in securing the appropriate debt funding package for the project,” said Grocott.
“In particular, the conditional support offered by EFA shows how the TECH project broadly aligns with the objectives of the Australian government’s Critical Minerals Strategy and the Critical Minerals Facility. We continue to create the path to a commercially attractive battery materials production facility, one that has elite sustainability credentials. Demand for critical battery materials which will be produced from the TECH project are anticipted to show significant growth over the next two decades as the worlds car fleet transitions to electric vehicles.”
A previously completed prefeasibility study into the TECH project estimated that it could produce some 565 714 t/y of ore containing 26 398 t of nickel sulphate, 3 097 t of cobalt sulphate, 4 007 t of high purity alumina, 327 665 t of hematite and 20 079 t of magnesia over a 30-year mine life.