Debt Financing Update

Queensland Pacific Metals Limited (ASX:QPM) is pleased to provide an update of its debt financing progress for the TECH Project.

Highlights

• Export Development Canada increases indicative debt financing commitment to $400m (previously $200m).
• Northern Australia Infrastructure Facility continues to progress Due Diligence with a potential debt financing commitment of up to $250 million
• These two when combined with the previous indicative debt financing commitment from Export Finance Australia ($250m) means QPM now has total potential indicative debt financing commitments of up to $900m.
• Discussions continue to advance in line with expected timeframes with a range of other potential financiers including other Export Credit Agencies and Commercial Banks.

Debt Financing Update

Following release of the Advanced Feasibility Study for the TECH Project (refer ASX Release dated 28 November 2022), QPM has continued financing discussions with Export Development Canada (“EDC”), Canada’s export credit agency. QPM is delighted to have received an updated non-binding letter of interest in support of the TECH Project for the provision of debt funding for up to A$400m (previously $200m).

EDC’s interest is in relation to potential equipment and services supply from Canadian companies for the construction of the TECH Project. The provision of financing by EDC is subject to the successful completion of its due diligence process and typical project finance conditions such as security, debt servicability and equity financing

In parallel, Australian Government Agencies Export Finance Australia (“EFA”) and Northern Australia Infrastructure Facility (“NAIF”) have continued financing discussions with QPM. The TECH Project aligns with the objectives of the Australian Government’s Critical Minerals Strategy - to diversify global critical minerals supply and capture more value from the global critical minerals value chain.

1. NAIF has previously advised QPM that the project has passed the Strategic Assessment Phase of the application process and is now in the Due Diligence stage (refer ASX announcement dated 23 August 2021)

2. EFA has already assessed the TECH Project. It meets the agency’s mandate to provide financial expertise and solutions to support Australian businesses across a variety of industries, including critical minerals (refer ASX announcement date 15 December 2021). EFA is now undertaking detailed due diligence on theTECH Project.

QPM and its debt advisor KPMG Corporate Finance continueto progress discussions with other lenders includingK-Sure who has previously provided a Letter of Interest (see ASX announcement 5April 2022). K- Sure has a Memorandum of Understanding in place with EFA to strengthen their capacity to work together and undertake joint financings.

Click here for the full ASX Release

This article includes content from Queensland Pacific Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.