Queensland Pacific Metals

December 2022 Quarterly and Cash Flow Report

Queensland Pacific Metals Ltd (ASX:QPM) (“QPM” or “the Company”) is pleased to present a summary of activities from the December 2022 quarter.


Highlights

  • Watershed investment and offtake agreement signed with General Motors.
  • Strong political support from key ministers and departments.
  • Release of Feasibility Study results for the TECH Project demonstrating attractive project financial metrics.
  • Receipt of all major Federal and State regulatory approvals for construction of the TECH Project.
  • Launch of QPM Energy, a wholly owned subsidiary, to vertically integrate the gas supply chain with the TECH Project and facilitate reduction of carbon emissions from waste coal mine gas.
  • Completion of updated Life Cycle Assessment, which has re-estimated the TECH Project to have NET- NEGATIVE carbon emissions of 989,213 tonnes per annum
  • $10.2m received from R&D Tax incentive refund, leaving QPM in a strong cash position with $45.1m in cash and cash equivalents as at the end of the December quarter.
Investment and Offtake Agreement with General Motors

On 12 October 2022, QPM announced a major investment and offtake agreement with General Motors (the “Transaction”). Under the Transaction and subject to certain conditions being met:

  • General Motors will invest up to US$69m (A$108m) by way of equity subscription for ordinary shares in QPM, which includes an initial investment of US$20.1m which has already been settled; and
  • General Motors has an option to purchase all uncommitted nickel and cobalt production for Stage 1 of the TECH Project and 100% of nickel and cobalt production under a Stage 2 expansion.

The Transaction with General Motors represents the start of a long term strategic collaboration between the two companies. As part of undertaking the Transaction, General Motors undertook extensive due diligence on all aspects of QPM, engaging external technical and financial consultants as part of the process.

The initial investment of US$20.1m was undertaken at a share price of $0.18 per share, which is significantly higher than the current share price of QPM ($0.12 at the time of publishing this Quarterly Report). General Motors’ ownership level in QPM is just under 10%.

QPM is focussed on becoming a significant part of General Motors’ battery metal supply chain. The sustainability credentials of the TECH Project and the values of QPM align well with that of General Motors’. QPM is excited to form this partnership and believes that the relationship between the two companies will be mutually beneficial. The US Inflation Reduction Act, which requires supply of raw materials from countries with a Free Trade Agreement with the United States in order to qualify for tax credits, adds further support for the supply of nickel and cobalt from QPM.


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.

QPM:AU
The Conversation (0)
Element 25 Limited

Element 25 Signs US$85M Supply Deal with GM for Manganese Sulphate

Element 25 (ASX:E25) has signed a deal with General Motors (NYSE:GM) to supply the car manufacturer 32,500 tonnes of manganese sulphate annually, according to a news report by Reuters.

Keep reading...Show less
FPX Nickel (TSXV:FPX)

FPX Nickel


Keep reading...Show less
Nickel bars.

Nickel Price Update: Q3 2024 in Review

Nickel saw solid price momentum in the first half of the year, benefiting from investor sentiment and speculation across commodity markets that saw surge in prices for both precious and base metals.

However, price highs were short-lived as nickel supply and demand fundamentals provided pressures that saw steep declines.

Among the influences has been a supply of laterite nickel flooding the market out of Indonesia, which is a contributing factor to mine curtailments in New Caledonia, Australia, and Europe. Meanwhile, high demand for battery production in China has yet to reach levels to make up for the oversupply in the market.

Keep reading...Show less
Blackstone Minerals

Blackstone Completes Institutional Component of Entitlement Offer

Blackstone Minerals Limited (“Blackstone” or the “Company”) is pleased to announce that it has completed the institutional component (“Institutional Entitlement Offer” or “Institutional Offer”) of its partially underwritten accelerated non-renounceable pro rata entitlement offer as announced on 4 November 2024 (“Entitlement Offer” or “Offer”).

Keep reading...Show less
Blackstone Minerals

Launch of $4M Accelerated Partially Underwritten Entitlement Offer

Blackstone Minerals Limited (“Blackstone” or the “Company”) is pleased to announce that it is undertaking a partially underwritten accelerated non-renounceable pro rata entitlement offer of new fully paid ordinary shares in the Company (“Shares”) on the basis of one (1) new Share (“New Shares”) for every four (4) existing Shares held, to raise up to approximately A$4 million (before costs) (“Entitlement Offer” or “Offer”).

Keep reading...Show less
Ramp Metals (TSXV:RAMP)

Ramp Metals


Keep reading...Show less
Blackstone Minerals

Blackstone Minerals Limited (ASX: BSX) – Trading Halt (2+2)

Description

The securities of Blackstone Minerals Limited (‘BSX’) will be placed in trading halt at the request of BSX, pending it releasing an announcement regarding the outcome of the institutional component of the accelerated entitlement offer. Unless ASX decides otherwise, the securities will remain in trading halt until the commencement of normal trading on Wednesday, 6 November 2024.

Keep reading...Show less

Latest Press Releases

Related News

×