Queensland Pacific Metals (QPM) has received binding commitments to raise $16 million at a share price of $0.07 per share, including a $5 million strategic investment by ore supplier Societe des Mines de la Tontouta (SMT) and a $1.5 million investment by General Motors (GM) as part of an existing investment deal.
In an ASX announcement, QPM said that the funds raised will allow for increased gas production at the Moranbah Project as well as ongoing technical workstreams required to achieve debt financing at the flagship TECH Project.
Under the agreement, new investors will receive one unquoted option for every two shares subscribed for under the placement, each with an exercise price of $0.10 and a three-year term.
To allow QPM shareholders to participate, the business has also launched a $8 million share purchase plan (SPP) on the same conditions as the placement.
Queensland Pacific Metals Managing Director and CEO Dr Stephen Grocott expressed his delight to welcome SMT as a shareholder of QPM, saying he looks forward to working together to maximise the value added to the respective companies from mutually beneficial commercial opportunities.
“We also thank GM and existing and new shareholders for their support and look forward to strong support from the rest of our shareholder base in the SPP,” Dr Grocott said.
In July 2023, QPM announced its strategic partnership with New Caledonian ore supplier, SMT. As part of that partnership, QPM and SMT committed to work together on investment opportunities that would allow SMT to share in the value created by turning its ore into battery chemicals.
Both businesses are looking for more investment opportunities as partners, with the goal of long-term profitability and expansion.
According to QPM, SMT’s $5 million investment is a significant strategic move, particularly for the TECH Project.
The collaboration also strengthens QPM’s investor base by adding SMT to a renowned list that already includes mainstays such as GM, LG Energy Solution, and POSCO.
Arnaud Bondoux, SMT general manager, said Societe des Mines de la Tontouta is thrilled to formalise its collaboration by acquiring a stake in the Australian business QPM.
“In a fast-changing nickel market, it’s important not only to secure our medium-term business vision, but also to support nickel transformation projects which contribute positively to the energy transition and battery market,” he explained.
Bondoux concluded, “Today’s investment is the first step in SMT’s determination to move down in the nickel value chain, beyond its role as an ore supplier, in order to propose a new model for the valuation of New Caledonian ore.”
