QPM raises funds for Moranbah gas boost, TECH work

Townsville battery metals plant proponent Queensland Pacific Metals (QPM) has raised $16 million in a share placement. It includes a $5 million strategic investment by ore supplier Société des Mines de la Tontouta and $1.5 million from offtake partner General Motors Holdings as part of an existing investment agreement. The company said the funds raised would back work to boost gas production at the Moranbah project it is in the process of acquiring as well as ongoing technical workstreams required to secure debt financing at the TECH project. It has also launched an $8 million share purchase plan on the same terms so QPM shareholders can participate. An update on financing for the Townsville plant stated that closure with the banks had been set back to the first half of 2024. This was linked to the delay in finalising its acquisition of the Moranbah gas project, which will provide energy for the plant. QPM plans to boost production from the project with a range of measures including a workover program on existing wells, set to start around October. It also plans to install tie-in points on an adjacent Anglo mine site to capture gas currently being drained and flared. Three are expected to be completed by September and three more by December. It plans to begin drilling in early 2024 on a new well program funded under the $80 million Dyno Nobel Development Funding Facility. Other infrastructure optimisation activities are also planned to help boost production. QPM said government-backed credit agencies and commercial banks were continuing to undertake their due diligence regarding TECH Project backing. In addition to the technical and engineering workstreams, the ability to supply long-term, competitively priced gas was a key component of this due diligence work. “Given the delay in finalising the Moranbah Project acquisition and therefore completing the long-term field development plans required for the banking syndicate, the timeline required to provide the necessary information has become misaligned with the timeline for the TECH Project,” the company stated. “QPM will therefore align both the TECH Project and Moranbah project timelines so they are both delivered in a similar time frame. “Whilst the aim has been to achieve credit-approved terms sheets from the banks around year end, this is now anticipated to occur during 1H 2024.” That additional time would also be used to shore-up commercial and supply agreements with equipment and materials providers and constructors, the company stated.

QPM raises funds for Moranbah gas boost, TECH work

Industry Queensland

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