Queensland Pacific Metals Ltd (ASX:QPM) looks to have secured total indicative debt financing commitments for the TECH Project in the order of $900 million.
This follows Export Development Canada (EDC) increasing its commitment to $400 million, while Northern Australia Infrastructure Facility has continued to progress due diligence on a potential debt financing commitment of up to $250 million.
These two when combined with the previous indicative debt financing commitment from Export Finance Australia of $250 million means QPM now has total potential indicative debt financing commitments of up to $900 million.
Following the release of the advanced feasibility study for the TECH Project, QPM continued financing discussions with Export Development Canada, Canada’s export credit agency.
Canadian support for TECH Project
The company is delighted to have received an updated non-binding letter of interest in support of the TECH Project for the provision of debt funding for up to A$400 million, up from a previous commitment of $200 million.
EDC’s interest relates to potential equipment and services supply from Canadian companies for the construction of the TECH Project. Its commitment is subject to the successful completion of its due diligence process and typical project finance conditions such as security, debt serviceability and equity financing.
“We are delighted at the response received to date from financiers, in particular Export Development Canada, and their willingness to consider debt funding for the TECH Project,” QPM managing director and chief executive officer Dr Stephen Grocott said.
Other financiers in the mix
At the same time, Australian Government Agencies Export Finance Australia (EFA) and Northern Australia Infrastructure Facility (NAIF) have continued financing discussions with QPM.
NAIF has previously advised QPM that the project has passed the Strategic Assessment Phase of the application process and is now in the due diligence stage, while EFA has already assessed the TECH Project.
QPM and its debt adviser KPMG Corporate Finance continue to progress discussions with other potential financiers including K-Sure, which has previously provided a letter of interest, and other export credit agencies and commercial banks.
K-Sure has a memorandum of understanding in place with EFA to strengthen the companies’ capacity to work together and undertake joint financings.
About the TECH Project
The TECH Project aligns with the objectives of the Australian Government’s Critical Minerals Strategy, which are to diversify global critical minerals supply and capture more value from the global critical minerals value chain.
It meets the agency’s mandate to provide financial expertise and solutions to support Australian businesses across a variety of industries, including critical minerals.
“Our strategy has been to target government-backed lending agencies and we greatly appreciate the indicative support received to date. We look forward to advancing through due diligence and through to credit approvals,” Grocott said.