The Conversation (0)
As part of a German trade delegation trip to Australia, QPM has entered into a Collaboration Agreement with the German Suppliers. As part of its past feasibility and current engineering work for the TECH Project, QPM has worked closely with each of the German Suppliers to ensure their equipment will meet the requirements of the TECH Project.
Highlights
- Collaboration Agreement executed with German companies Plinke GmbH, Andritz Separation GmbH and Siemens Ltd (together the “German Suppliers”) regarding supply of capital equipment for the TECH Project.
- The German Suppliers will supply a significant proportion of equipment required for the TECH Project.
- Receipt of financing support has been received from two German financial institutions:
- Germany’s Export Credit Agency (“ECA”) Euler Hermes has provided a Letter of Interest to provide a tied loan guarantee that would be for an amount of approximately A$500m, linked to the value of equipment to be provided by the German Suppliers.
- KfW IPEX-Bank confirmed its in principle interest to provide up to US$250m (A$357m) in debt financing split between the Euler Hermes guaranteed debt and non ECA guaranteed debt.
- Total indicative and conditional debt funding expressed by interested financiers as part of QPM’s debt process exceeds A$1.4 Billion.
German Supplier Collaboration
As part of the Collaboration Agreement, QPM and the German Suppliers will:
- collaborate to advance the TECH Project for the mutual benefit of all parties;
- collaborate to ensure that proposed equipment to be supplied will be designed and constructed to meet the requirements of the TECH Project;
- work towards providing performance guarantees for their equipment; and
- identify the quickest pathway through to construction and commercial production.
Furthermore, subject to completion of current optimisation testwork, engineering and commercial negotiation:
- the German Suppliers will provide construction and commissioning assistance;
- the German Suppliers will organise visits to plants in which their equipment is in operation; and
- QPM will not undertake a competitive tender on this equipment. QPM and the German Suppliers are in the process of completing design work and negotiating commercial terms, an important milestone which will be required as part of RPM Global’s due diligence as Independent Technical Expert for potential financiers.
Indicative Funding Support from German Financial Institutions
As part of the debt financing process, QPM and its debt advisor (KPMG Corporate Finance) have been in ongoing discussions with key German Financial Institutions regarding debt financing for the TECH Project.
Euler Hermes, the Federal Republic of Germany’s (“FRG”) ECA.
- QPM, through its German Suppliers, has previously received Letters of Interest from Euler Hermes given the TECH Project would, in principle, qualify under the export credit guarantee scheme of the FRG. As discussions and workstreams have advanced with the German Suppliers, the value of equipment supply from Germany is now better understood. Based on the indicative value of this equipment, Euler Hermes has provided QPM with an updated Letter of Interest expressing conditional tied loan guarantee to finance up to A$500m of these contracts. QPM expects the final commitment from Euler Hermes could therefore be approximately $500m.
- The provision of the guarantee by Euler Hermes’ is non binding and subject to conditions standard for a debt facility of this nature including security, debt serviceability and equity financing, successful completion of the due diligence process and will be structured in accordance with the conditions of the OECD Arrangement on Officially Supported Export Credits.
KfW IPEX-Bank GmbH the German government owned specialist project and export finance bank
- KfW IPEX has issued a refreshed letter of support given the German exporter involvement. KfW IPEX confirmed its in principle interest to provide up to US$ 250M in debt financing
- Financing commitment would be split between the Euler Hermes guaranteed debt and non ECA guaranteed debt (in a typical sweet/sour ratio).
The table below summarises QPM’s debt financing progress, which now exceeds A$1.4 Billion of conditional funding support.
Comments
QPM’s Managing Director and Chief Executive Officer, Dr Stephen Grocott, commented,
“We have long identified that our German partners would be well positioned to supply commercially proven equipment required for the TECH Project. We have been actively engaged with Plinke, Andritz and Siemens throughout our feasibility work. Formalisation of these relationships through the Collaboration Agreement is a clear demonstration of each companies’ intentions and support for the TECH Project. This validates QPM’s strategy of sole-source partnering with leading equipment and technology suppliers. Furthermore, the conditional support received from Euler Hermes and KfW IPEX represents another milestone to our debt financing process. We are delighted they have the potential to provide loans and loan guarantees to support the financing of the German supply contracts.”
KBR’s Vice President, Gary Godwin, commented,
“We are honored to be supporting QPM in the development of their TECH project. Our technology specialists in Bad Homburg, along with KBR’s global delivery teams are utilising our laboratories, pilot plants, process design expertise and equipment knowledge to innovate and contribute to the overall success of this project.”
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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.
QPM:AU
Drilling Confirms Thick Copper Zone Continuity at Horden Lake
Highlights
- HN-24-94 extends broad zones of copper rich mineralisation down-plunge of previously reported HN-24-93.
- 39.1m @ 0.97% CuEq (0.4% Cu, 0.17% Ni, 0.06g/t Au, 0.14g/t Pd) plus additional 0.07g/t Pt, 131ppm Co, 4.7g/t Ag from 154.1m
- Including 19.7m at 1.41% CuEq from 163.6m
- Includes multiple 2-3m sections grading >2% CuEq
- Drill hole infills a large area, almost 100m from any previous drill hole
- HN-24-95 confirms mineralisation continuity below HN-24-92.
- 4.95m @ 0.66% CuEq (0.23% Cu, 0.12% Ni, 0.05g/t Au, 0.14g/t Pd) plus additional 0.05g/t Pt, 240ppm Co, 3.3g/t Ag from 155.7m
- Assay results and mineralisation consistent with the lower magnetic response between the central and southern zones of the deposit
- Significant gold, silver, palladium, platinum and cobalt metals delineated once again, which were not assayed for in this part of the deposit during previous drill campaigns.
- Consistent news-flow ahead, including results from the remaining 6,392 m / 30 diamond drill holes and downhole EM surveys to be released progressively through the quarter, followed by mineral resource update and metallurgical testwork in H2.
Managing Director, Mr Fairhall said:
“Horden Lake delivers further confirmation of the wide zones of mineralisation indicative of the large, open-pittable copper project that has been defined on the project. The meaningful assays of palladium, gold, cobalt, platinum and silver, previously ignored, further reinforce the upside potential of this asset.
Logging and analysis continues, and we expect consistent news flow over the coming months as we release assays and downhole geophysics interpretations to target both grade and tonnage upside potential on the project.”
Overview
Horden Lake is a copper dominant Cu-Ni-Au-PGM-Co Project located 131km north-northwest of Matagami, in Quebec Canada. The Project hosts a 28mt at 1.5% CuEq indicated and inferred mineral resource estimate, as a result of over 52,464m of drilling already completed on the property. Pivotal has recently completed a 7,097m 34 hole diamond drilling campaign. 2 drill holes / 264m have been reported prior to this announcement.
The objectives of the drilling program were to infill missing by-product multi-element assay information, potentially expand the resource (which remains open at depth across its full extent), and collect a distribution of metallurgical sample for a complete test work program. Downhole EM surveys have also been completed to dimension future exploration potential and targeting.
Figure 1: Drill plan map of the Horden Lake Cu-Ni-Au-PGM Project
Drill Hole Discussion
Holes HN-24-92 and HN-24-93 were designed to target gaps in the resource blocks, infill and add additional missing metals assay information. Table 1 contains significant intercepts, and Figure 2 is a longitudinal section showing the spatial distribution of historical and new drill hole pierce points.
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This article includes content from Pivotal 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.
First Assays Confirm Thick Copper Zone and Significant By-Products at Horden Lake
Highlights
- Drilling confirms broad zones of copper rich Cu-Ni-Au-PGM-Co mineralisation at Horden Lake, including 37.5m at 1.31% CuEq.
- Significant gold, silver, palladium, platinum and cobalt metals delineated, which were not assayed for in this part of the deposit during historical drill campaigns.
- The first two drill holes fall within the pit constrained portion of the 28 Mt at 1.5% CuEq Indicated and Inferred Mineral Resource Estimate1,2, and display moderately thicker and better grades than the surrounding historical holes.
- Consistent news-flow ahead, including results from the remaining 6,833 m / 32 diamond drill holes and downhole EM surveys to be released progressively through the quarter, followed by mineral resource update and metallurgical testwork in H2.
Assay Highlights
HN-24-93
- 37.5m @ 1.31% CuEq2 (0.57% Cu, 0.22% Ni, 0.10g/t Au, 0.15g/t Pd) plus additional 0.05g/t Pt, 180ppm Co, 7.2g/t Ag from 51.15m
Including 15.0m @ 2.15% CuEq (0.98% Cu, 0.35% Ni, 0.2g/t Au, 0.18g/t Pd) plus additional 0.04g/t Pt, 261ppm Co, 13.4g/t Ag from 73.65m - 1.2m @ 4.44% CuEq (2.73% Cu, 0.35% Ni, 0.81g/t Au, 0.39g/t Pd) plus additional 0.11g/t Pt, 324ppm Co, 33.1g/t Ag from 87.45m
HN-24-92
- 4.8m @ 0.67% CuEq (0.2% Cu, 0.12% Ni, 0.05g/t Au, 0.18g/t Pd) plus additional 0.07g/t Pt, 96ppm Co, 2g/t Ag from 82m
- 6.75m @ 1.54% CuEq (0.63% Cu, 0.28% Ni, 0.07g/t Au, 0.20g/t Pd) plus additional 0.10g/t Pt, 179ppm Co, 7.2g/t Ag from 99m
Including 3.85m @ 2.14% CuEq (0.85% Cu, 0.40% Ni, 0.09g/t Au, 0.26g/t Pd) plus additional 0.12g/t Pt, 234ppm Co, 9.5g/t Ag from 101.2m
Managing Director, Mr Fairhall said:
“I am very pleased to be sharing the first of many assays from Pivotal’s maiden drilling campaign at Horden Lake. These results showcase the shallow wide zones of copper rich mineralisation that characterises Horden Lake. Importantly they validate the existence of significant gold, palladium, platinum, cobalt and silver which were never previously assayed in this part of the deposit, and will serve as potential upside to our mineral resource update later this year.
We look forward to sharing consistent news-flow in the coming months as we receive more assays and downhole geophysics interpretations, to complement our strategy to grow Horden Lake and demonstrate its high-quality development credentials.”
Overview
Horden Lake is a copper dominant Cu-Ni-Au-PGM-Co Project located 131km north-northwest of Matagami, in Quebec Canada. The Project hosts a 28mt at 1.5% CuEq indicated and inferred mineral resource estimate, as a result of over 52,464m of drilling already completed on the property. Pivotal has recently completed a 7,097m 34 hole diamond drilling campaign. The objectives of the drilling program were to infill missing by-product multi-element assay information, potentially expand the resource (which remains open at depth across its full extent), and collect a distribution of metallurgical sample for a complete test work program. Downhole EM surveys have also been completed to dimension future exploration potential and targetting.
Figure 1: Drill plan map of the Horden Lake Cu-Ni-Au-PGM Project
Drill Hole Discussion
Holes HN-24-92 and HN-24-93 were designed to target gaps in the resource blocks, infill and add additional missing metals assay information. Table 1 contains significant intercepts, and Figure 2 is a longitudinal section showing the spatial distribution of historical and new drill holes.
Click here for the full ASX Release
This article includes content from Pivotal 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.
