Brisbane, Australia – 15 July 2024 | Queensland Pacific Metals Ltd (ASX: QPM) ("QPM" or "the Company") is pleased to announce the receipt of an $8 million grant from the Queensland State Government. This funding is set to advance the Townsville Energy Chemicals Hub (“TECH Project”) towards investment readiness, further solidifying the project's competitive position in the critical minerals market.
Key Highlights:
- Significant Government Support: The Queensland Government will provide up to $8 million in the form of a grant to prepare the TECH Project for investment readiness. This is in addition to the recently announced $8 million grant from the Australian Federal Government under the International Partnerships in Critical Minerals program.
- Non-Dilutive Funding: The combined $16 million in grants represents significant non-dilutive funding for the TECH Project, enabling QPM to ramp up activities without impacting its financial position or the QPM Energy business.
- Strategic Demerger Evaluation: In light of the new funding, QPM's Board has resolved to formally evaluate a demerger of the TECH Project from the QPM Energy business. This strategic move aims to allow both projects to grow independently and maximize value for shareholders.
Grant Funding: QPM has collaborated closely with the Queensland Government, which has previously designated the TECH Project as both a Prescribed Project and a Significant Investment Project. The Honourable Scott Stewart, Minister for Resources and Critical Minerals, announced the $8 million grant on 12 July 2024, highlighting the project's importance to the region and the nation.
The Queensland Government grant also satisfies the matched funding condition required under the Federal Government grant, ensuring that QPM can proceed with its development plans without delay.
TECH Project Activities: Over recent years, QPM has significantly advanced the TECH Project, bringing it closer to a Final Investment Decision. The combined grants will facilitate the continuation of technical workstreams, positioning the TECH Project advantageously compared to other development-stage nickel projects.
Dr Stephen Grocott, QPM Director, commented: “Government support is essential for advanced manufacturing projects like TECH to be competitive on the global stage. 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.”
Demerger Process: QPM's Board believes that the Company has two high-quality projects that are currently undervalued within the existing corporate structure. The Board has resolved to evaluate a demerger to separate the ownership of the Moranbah Gas Project and the TECH Project. The proposed demerger aims to:
- Allow both projects to grow and create value independently.
- Create an attractive energy-focused investment vehicle and a separate, critical minerals-focused entity.
- Recalibrate Board and Management expertise for both businesses.
The QPM Board is confident that this strategic move could unlock a material increase in overall shareholder value.
David Wrench
CEO
[email protected]
+61 7 3517 5900
Jane Morgan
Investor & Media Relations
[email protected]
+61 405 555 618
About us:
About: Queensland Pacific Metals:
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.
Contact details:
Jane Morgan
Jane Morgan Management
Investor Relations
[email protected]