QPM’s TECH Project debt financing process advancing well

Queensland Pacific Metals Ltd is making great progress with its debt financing initiatives for its north Australian-based TECH Project.

Queensland Pacific Metals Ltd (ASX:QPM) is making great strides with its TECH Project debt financing initiatives by pursuing international export credit agencies and other government-backed lenders. This process has included ongoing talks with Export Development Canada (EDC), which based on its initial analysis and discussions with Canadian companies, has provided a non-binding letter of interest to QPM for support to the TECH Project by lending up to A$200m.

The provision of financing by EDC, the official export credit agency of Canada, is subject to the successful completion of its due diligence process and typical project finance conditions such as security, debt serviceability, and equity financing.

QPM’s debt financing strategy

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). As well as these agencies, the company is in active discussions with other international government organisations or commercial lenders.

It is clear from the non-binding letter of interest received from EDC that QPM’s debt financing initiatives are making continued progress. Already, these initiatives have resulted in:

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

Independent consultants have been appointed

The company has also recently appointed independent consultants who will assist the lenders in their due diligence on the TECH Project. RPM Global has been formally appointed as Independent Technical Expert for the debt syndicate. The organisation has commenced its technical due diligence on the TECH Project.

Additionally, CRU Group has been appointed as the Independent Market Consultant and will be producing a detailed report on the nickel and cobalt sulphate markets.

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