- Queensland Pacific Metals (QPM) receives binding commitments to raise $30 million to support work at its proposed TECH Project in Townsville
- The company will issue 187.5 million shares at 16 cents each — a discount from last close of 8.6 per cent — to new and existing institutional and sophisticated shareholders
- The company says funds raised will primarily focus on the completion of a definitive feasibility study (DFS), testwork, engineering and ESG initiatives
- In addition to the placement, QPM has received conditional support from Export Finance Australia to potentially secure up to $250 million in debt funding for the project
- Shares in Queensland Pacific Metals are up 2.86 per cent to $0.18 as of 10:46 am AEDT
Queensland Pacific Metals (QPM) has received binding commitments to raise $30 million to support work at its proposed TECH Project in Townsville, North Queensland.
The company will issue 187.5 million shares at 16 cents each, which represents a discount of 8.6 per cent compared to its last closing price of 17.5 cents per share on December 14.
The company said new and existing institutional and sophisticated shareholders participated in the placement as well as new offshore investors.
Funds raised will go towards a number of initiatives, including the completion of a definitive feasibility study (DFS), testwork, engineering and ESG initiatives.
Additionally the company plans to undertake high purity alumina feasibility and testwork to produce samples to assist with offtake initiatives. As well as seeking approvals for site works and furthering its exploration program for Sewa Bay to delineate a maiden JORC resource.
QPM Managing Director Stephen Galcott said he was delighted with the support for the placement and welcomed a number of “highly credentialed” domestic and offshore institutional investors to QPM’s register.
“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,” Mr Galcott said.
Settlement is expected to take place on or around December 20, 2021, with allotment on December 21, 2021.
In addition to the placement, QPM has received conditional support from Export Finance Australia (EFA) to potentially secure up to $250 million in debt funding for the TECH Project.
EFA administers the Australian Government’s $2 billion Critical Minerals Facility, which helps kickstart critical minerals projects, and will begin a period of due diligence on the TECH Project in line with its mandate to support Australian businesses across a variety of industries.
“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,” Mr Galcott said.
“We continue to create the path to a commercially attractive battery materials production facility — one that has elite sustainability credentials.”
Shares in Queensland Pacific Metals are up 2.86 per cent to $0.18 as of 10:46 am AEDT.