Queensland Pacific Metals (ASX:QPM) has secured a second grant of up to $8 million to prepare the Townsville Energy Chemicals Hub (TECH) Project, this time from the Queensland Government.
The grant will prepare the project for investment readiness and also satisfies the matched funding condition required under the previously announced federal government grant to advance TECH.
Queensland Pacific, which has a market capitalisation of $83.18 million, will now work with the Queensland Treasury to finalise an agreement for the delivery of the grant and will provide more information once it is available.
Director Stephen Grocott says receiving government support is essential to advance manufacturing projects like TECH to be competitive on a global scale.
“We believe in the merits of the TECH Project with its gold standard sustainability credentials and world-class partners,” he says.
Upon execution of the federal and state government grants, Queensland Pacific will begin to ramp up activities on the TECH Project.
The company says this will put TECH in a “strong competitive position” compared with other development stage nickel projects, which have been largely halted.
Queensland Pacific’s board also believes that its two projects are currently undervalued in the existing corporate structure. As a result of the awarded government grants, there is an opportunity to demerge the TECH Project with funding in place to continue to progress towards commercialisation.
The board has resolved to evaluate a demerger to separate ownership of the Moranbah Gas and TECH projects.
Queensland Pacific says the benefits may include allowing both projects to grow and create value independently, create an attractive energy focused investment vehicle and a separate, critical minerals-focused entity along with associated synergies, and recalibrate management and board expertise for both businesses.
Queensland Pacific Metals is an emerging producer of sustainable, clean, and green nickel, headquartered in Brisbane, Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Queensland Pacific Metals
