Queensland Pacific Metals

Debt Funding Update

Queensland Pacific Metals Ltd (ASX:QPM) (“QPM” or “the Company”) is pleased to provide an update on its debt financing initiatives for the TECH Project.


Highlights

  • QPM’s debt financing process is progressing well:
    • Ongoing discussions with other financiers providing QPM with greater clarity of the likely indicative debt syndicate for the TECH Project;
    • Independent Techncal Expert RPM Global has formally commenced technical due diligence; and
    • Independent Market Consultant CRU Group has commenced its review of the Nickel and Cobalt Sulfate markets to support the financing.
  • Non-binding letter of interest received from Export Development Canada (“EDC”), Canada’s export credit agency, for the potential provision of debt funding for the TECH Project for up to A$200m. EDC’s financing is subject to the successful completion of its due diligence process and underwriting conditions.
QPM’s strategy is to work with international export credit agencies and other government backed lenders for the provision of debt financing for the TECH Project. This process has included ongoing discussions with EDC. Based on its initial analysis and discussions with Canadian companies, EDC has provided a non-binding letter of interest to QPM for support to the TECH Project by lending up to A$200m as a direct lender over an indicative tenor of 9 years. 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.
EDC is the official export credit agency of Canada and is dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global.

Debt Financing Update

QPM’s debt financing strategy has been to target a debt syndicate largely consisting of government backed lenders led by Australian agencies, Export Finance Australia (“EFA”) and Northern Australian Infrastructure Facility (“NAIF”). QPM remains in active discussions with these Australian and other international government agencies, as well as other commercial lenders.

The non-binding letter of interest received from EDC demonstrates continued progress by QPM on its debt financing initiatives which has already resulted in:

  • $250m indicative financing letter of interest received from EFA;
  • Completion of strategic assessment phase for NAIF;
  • Indicative letter of interest and support received from Korea Trade Insurance Corporation (K-Sure).

QPM has recently appointed independent consultants who will be assisting the lenders in their due diligence on the TECH Project. RPM Global has been formally appointed as Independent Technical Expert for the debt syndicate and has commenced its technical due diligence on the TECH Project. CRU Group has been appointed as the Independant Market Consultant and will be producing a detailed report on the Nickel and Cobalt Sulfate markets.


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.

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