Queensland Pacific Metals Ltd (ASX:QPM) has received a tax refund of $10.2 million, relating to the research and development tax incentive for the 30 June 2022 financial year, lifting the company’s cash balance to $45.2 million.
This leaves QPM well-positioned to advance the TECH Project in Townsville in parallel with the debt funding process.
QPM has already secured all major approvals for the TECH Project following the recent grant of a development permit under the Planning Act 2016 and an environmental authority (EA) under the Environmental Protection Act 1994.
READ: Queensland Pacific Metals ticks off all major approvals for TECH Project following grant of environmental authority
The development permit and EA allow QPM to operate stage 1 of the TECH Project, notionally processing roughly 1.6 million wet metric tonnes of ore per annum to produce ~16,000 tonnes of nickel metal and 1,750 tonnes of cobalt metal, both in sulphate form, as well as other valuable co-products.
With the EA in place, and following the approval received in November from the Australian Federal Government, QPM has now received all primary approvals to begin construction of the TECH Project.
In parallel with its debt financing initiatives, QPM will now continue to advance the TECH Project with work streams relating to:
- Detailed engineering and equipment test work;
- gas supply chain; and
- Lansdown site works.
In October, QPM established a long-term collaboration with global carmaker General Motors (NYSE:GM), setting the stage for a strategic investment and offtake agreement.
GM could seed as much as US$69 million (A$108 million) in funding through an equity subscription — a deal that includes an initial, binding US$20.1 million (A$31.4 million) investment.
Through the collaboration, GM also has the right to purchase all uncommitted nickel and cobalt sulphate produced in the first 15 years of the Queensland-based TECH Project’s first phase of operation.
If it opts in for a further investment when QPM reaches a final investment decision, GM’s offtake rights will extend to the project’s lifespan, and it can purchase all of the nickel and cobalt sulphate covered under the phase two expansion.
QPM will use the funding to accelerate development and construction across its battery metals TECH hub.