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- Queensland Pacific Metals (QPM) signs a binding investment and offtake agreement with General Motors (GM) to form the beginning of a “long-term strategic collaboration”
- GM will invest up to US$69 million (A$110 million) in QPM, starting with an initial investment of up to US$25 million
- In return, GM will have the right to purchase all uncommitted nickel and cobalt sulphate produced in the first 15 years of phase one of QPM’s TECH project in Queensland
- QPM says agreements will advance the company closer towards a final investment decision (FID) to construct the TECH project
- Shares in QPM were up 13.33 per cent, trading at 17 cents as of 12:50 pm AEST
Queensland Pacific Metals (QPM) has signed a binding investment and offtake agreement with General Motors (GM) to form the beginning of a “long-term strategic collaboration”.
QPM said the agreements would advance the company closer towards a final investment decision (FID) to construct its Townsville Energy Chemicals Hub (TECH) project in Queensland.
Under the investment agreement, GM will invest up to US$69 million (A$110 million) in QPM, starting with an initial investment of up to US$25 million to be followed by an FID investment of up to US$44 million.
At each opportunity, GM will invest the maximum amount possible under its commitment subject to its total shareholding in QPM being less than 10 per cent.
Under the offtake agreement, GM has been granted the right to purchase all uncommitted nickel and cobalt sulphate produced in the first 15 years of phase one of the TECH project.
By undertaking an additional investment when QPM reaches an FID, GM’s offtake rights for phase one will be further extended to the life of the project, and the company will be granted the right to purchase 100 per cent of nickel and cobalt sulphate under a phase two expansion of the project.
The TECH project is set to become a sustainable producer of critical metals and other by-products for the lithium-ion battery and electric vehicle (EV) sectors.
QPM Managing Director Stephen Grocott said GM was the perfect fit for the company as it was aligned with QPM’s strategic direction, company values and focus on sustainability.
“GM’s investment in our company and the associated offtake brings us one step closer towards the construction of the TECH project, where we will one day aim to deliver the world’s cleanest produced nickel and cobalt.”
As part of its initial investment, GM has committed to subscribe for approximately 174 million shares in QPM at 18 cents per share — a 20 per cent premium to QPM’s last closing price.
QPM will also issue approximately 46.8 million unquoted options to GM with an exercise price of 20 cents and a term of three years from the issue date.
Shares in QPM are up 13.33 per cent, trading at 17 cents as of 12:50 pm AEST.
