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.

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.