Highlights
QPM has completed a Placement to raise $30.3 million at $0.035 per share to Institutional and Sophisticated Investors ("Placement"):
• The Placement was oversubscribed and strongly supported by existing and new Institutional and Sophisticated Investors; and Funds raised under the Placement will allow QPM to order critical long lead items, such as transformers, and continue project development activities to maintain the Isaac Power Station ("IPS") Project Schedule target of commissioning in mid-2027.
In parallel, QPM has entered into a non-binding term sheet with an Australian Investment company ("Potential Note Investor") for a $40m convertible note investment:
• Key terms are consistent with market precedent transactions for facilities of this nature; QPM has granted the Potential Note Investor an 8 week exclusivity period to finalise the transaction; and the Potential Note Investor also subscribed for $2 million of shares in the Placement.
With these two transactions, QPM has established a clear pathway to funding the development of the Isaac Power Station ("IPS") including the following facilities:
• A $180 million joint project finance facility intended to be provided by Macquarie and the Northern Australia Infrastructure Facility ("NAIF"), which the existing $113.7 million Macquarie Master Lease Agreement ("MLA") facility will roll into; The $40 million convertible note investment; and Proceeds from the Placement.
Commenting on the Placement and Convertible Note term sheet, QPM's CEO David Wrench, said: "We are very pleased with the strong support from existing shareholders and new investors who participated in the Placement. We have also been working hard to identify an investor who is aligned with the Company's unique portfolio of assets and growth opportunities. The Potential Note Investor we have signed the non-binding convertible note term sheet with meets this criteria and is well placed to help us accelerate the development of our business through IPS and beyond."
About us:
Queensland Pacific Metals is an Australian company listed on the Australian Securities Exchange (ASX:QPM). The head office is in Brisbane, Queensland and the company also has an office in Townsville, North Queensland.
The company is focused on developing the 100% owned Townsville Energy Chemicals Hub (TECH) Project. The TECH Project will be a modern and sustainable, battery metals refinery, 40km south of Townsville, in northern Queensland. The TECH Project will produce critical metals for the rapidly emerging lithium-ion battery and electric vehicle sector.
Queensland Pacific Metals shareholders include global battery manufacturing leader LG Energy Solution, major Korean conglomerate POSCO and American multinational automotive manufacturing company General Motors. Queensland Pacific Metals has secured binding offtake agreements for the sale of nickel and cobalt with LG Energy Solutions, POSCO and General Motors.
