Iltani Resources (ASX:ILT) has entered into a legally binding agreement to receive an $8 million investment from the Queensland Investment Corporation’s (QIC) Critical Minerals and Battery Technology Fund (QCMBTF) to develop the Orient Silver-Indium Project.
The company will receive $6 million in cash in exchange for OCMBTF to receive a 2% royalty on future product sales from the Herberton Project, also in Queensland, if Iltani begins commercial production by 31 December 2030, otherwise boosted to 2.5%.
Iltani will receive the remaining $2 million cash payment for the issue of 5.41 million shares, valued at $0.37 per share, representing a 10% discount to the 20-day volume weighted average price (VWAP).
Managing Director Donald Garner says the funding comes not long after sharing the maiden resource of the Orient West deposit, which came in at 21.6 million tonnes @ 100.5 grams per tonne silver equivalent.
“Strategically, this agreement also delivers long-term alignment with the Queensland Government’s policy to position the North Queensland region as a key supplier of critical minerals used in the global economy and demonstrates the Queensland Government’s continued support for the Queensland mining sector,” Garner says.
Meanwhile, Iltani expects to return a maiden resource estimate for the Orient East deposit shortly.
The QIC is a state government owned corporation that manages the QCMBTF to bolster businesses focused on supporting Queensland’s critical minerals supply chain.
As of 30 June, the QIC holds $131.6 billion worth of assets under management.
Write to Maddison Elliott at Mining.com.au
Images: Iltani Resources
