Queensland Pacific Metals wins $8M from QLD gov’t to reach FID at Townsville chemical play – also to be demerged

Queensland Pacific Metals (ASX:QPM) has revealed its receipt of confirmation for $8M of funding from QLD’s government.

The funding is to help QPM arrive at FID for its Townsville Energy Chemicals Hub (‘TECH project‘).

That vision sees a world where QPM can provide nickel ore from New Caledonia to produce nickel and cobalt sulphates for the Australian supply chain. A number of ex-Chiense companies are potential offtakers, with LG Energy Solutions, POSCO and General Motors all watching.

The $8M from QLD adds to an existing $8M from Canberra for a total pool of $16M to head towards FID.

Based on this sum – relatively small compared to what Canberra recently doled out the Arafura critical minerals project – QPM now wants to spin out the Tech Project from QPM in a demerger.

“A Demerger would allow both QPM Energy and the TECH Project to grow more efficiently and maximise value for shareholders,” the company wrote on Monday.

“Government support is essential for advanced manufacturing projects like TECH to be competitive on the global stage,” QPM Director Stephen Grocott said.

“We believe in the merits of the TECH Project with its gold standard sustainability credentials and world class partners. I would like to personally thank both the State and Federal Governments for their ongoing support, particularly at a time where it is most needed for critical minerals.”

QPM last traded at 3.3cps.