- Queensland Pacific Metals (QPM) receives strong interest from Australian and international debt providers to support its Queensland-based project
- The Townsville Energy Chemicals Hub (TECH) Project is being developed as a sustainable producer of critical metals for the lithium-ion battery and EV sectors
- The debt funding process is being led by KPMG which is focused on engaging with and shortlisting potential financiers to participate in the debt syndicate
- Managing Director Dr Stephen Grocott said the interest is due to TECH’s potential financial returns and its focus on leaving a minimal environmental footprint
- Company shares are up 2.13 per cent to trade at 24 cents
Queensland Pacific Metals (QPM) said it has received strong interest from Australian and international debt providers regarding its Queensland-based project.
The Townsville Energy Chemicals Hub (TECH) Project is being developed as a sustainable producer of critical metals, such as nickel sulphate, cobalt sulphate, high-purity alumina (HPA) and other by-products, for the lithium-ion battery and electric vehicle sectors.
In September, the project was declared a ‘Prescribed Project’ by the Queensland Government. This status is granted to a project considered economically or socially significant to a region.
QPM recently appointed KPMG to run the debt funding process and it has been interacting with selected banks and agencies to shortlist financiers that can participate in the debt syndicate.
The company’s debt funding strategy is to secure a project finance syndicate comprising leading financiers, global export credit agencies (ECAs) and development finance institutions (DFIs). This strategy reportedly provides greater flexibility in loan structuring, better access to low-cost lending and ensures the financing aligns with QPM’s development and offtake partners.
At this stage, it has received eligibility letters or letters of interest from four ECAs/DFIs in Korea, Canada and Europe.
This follows the successful completion of the strategic assessment phase as part of the application process with the Northern Australia Infrastructure Facility (NAIF). The company is now at the due diligence stage of the application process.
QPM Managing Director Dr Stephen Grocott was encouraged by the support and interest received from financiers.
“They are attracted to the TECH Project not only by the potential financial returns but also because the project will be a leader in sustainability with carbon net-negative nickel production, minimal environmental footprint and waste and developed world risk profile,” he said.
There is significant work ahead of us to secure the debt funding package. However, I am confident that, with large, like-minded financiers working alongside the QPM team, it is the right strategy to ensure the project will reach Final Investment Decision.”
Company shares were up 2.13 per cent to trade at 24 cents at 12:40 pm AEDT.