Join our daily newsletter At The Bell to receive exclusive market insights
- Pure Minerals (PM1), through its subsidiary Queensland Pacific Metals, has entered into a research and development loan agreement with Metamor Capital Partners
- The short-term facility will allow Queensland Pacific Metals to borrow up to $586,728, drawn down in two tranches
- The funds will be used to progress the company’s Townsville Energy Chemicals Hub (TECH) project, and will, therefore, be eligible for subsidisation under the Australian R&D Tax Incentive scheme
- Separately, the company is expected to raise $320,000 via a placement with overseas investor Kwong Ho Richard Chan
- Shares in PM1 enjoyed a 9.09 per cent spike at market open, trading for 1.2 cents per share
Pure Minerals (PM1), through its subsidiary Queensland Pacific Metals, has entered into a research and development loan agreement with Metamor Capital Partners.
The company is currently focused on developing a modern battery metals refinery in northern Queensland, the Townsville Energy Chemicals Hub (TECH) project. The site will process imported high-grade minerals from New Caledonia to produce nickel sulphate, cobalt sulphate and other valuable products.
The majority of Queensland Pacific Metals’ expenditure on the TECH project — both historically and in the future — is considered to be eligible for the Australian R&D Tax Incentive scheme, and is therefore likely to heavily subsidised.
Under the short-term loan, Queensland Pacific Metals will be able to borrow up to $586,728, drawn down in two tranches. Repayment of the facility will be made upon the receipt of Pure Minerals’ R&D Tax Incentive for the financial year, or on November 15, 2020 — whichever comes first.
The funds will be used to progress the TECH project and for general working capital. The company also expects to use a portion of the funds to advance activities at the pilot plant, located at the CSIRO facilities in Western Australia.
Pure Minerals will act as the guarantor for the facility, which will be a standard cash loan with no conversion options.
In addition, Metamor Capital may terminate the agreement in the event of a default. Such circumstances would include a breach of a material provision of the agreement or an insolvency event.
Separately, Pure Minerals has received a commitment from Kwong Ho Richard Chan, a single overseas investor, to raise $320,000. The company will issue 32 million shares to Kwong Ho Richard Chan, at a price of $0.01 each.
This represents a nine per cent discount on the company’s closing price on April 29, and the shares are expected to be issued around May 8 this year.
Shares in PM1 enjoyed a 9.09 per cent spike at market open, trading for 1.2 cents per share at 10:41 am AEST.
