TECH plant team cashed up to move ahead

Queensland Pacific Metals says is fully funded to complete the definitive feasibility study and regulatory approvals for its Townsville battery chemicals plant. The Townsville Energy Chemicals Hub (TECH) project proponent has received firm commitments from institutional and sophisticated investors to raise $15 million (before costs) via a share placement of 187,500,000 shares. The company will also open a share purchase plan to raise a further $3 million. Chief executive officer Stephen Grocott. “We are delighted to raise sufficient funding to complete the DFS for the TECH Project," chief executive officer Stephen Grocott said. "This allows the QPM team to focus on delivering this key study that will underpin the viability of the project and also allow us to procure financing for the construction. "We welcome all new shareholders to the company and are delighted by the quality of institutional investors who have supported the placement.” Related: Townsville skills fit the bill for TECH jobs The proposed TECH facility at the the Lansdown Eco-Industrial Precinct on Townsville's outskirts would produce key battery chemicals nickel sulfate and cobalt sulfate, to be extracted from ore imported from New Caledonia. The company last month formally committed to expanding the TECH project to process 1.2 – 1.5 million wet tpa ore, at least twice the capacity contemplated in the pre-feasibility study. It also produced an updated project schedule, with construction expected to start around April next year and first production targeted for 2023. Positive findings on MHP testwork Queensland Pacific Metals recently reported positive assay results for the MHP (mixed hydroxide precipitate) produced from its recent piloting testwork for the TECH Project. MHP is an intermediate product of nickel laterite ore processing. As part of QPM’s technical team, it engaged consultants with expertise in MHP production and the refining of MHP into nickel and cobalt sulfate. MHP produced at the Perth pilot plant for TECH. The company said these experts (including specialist David White who has worked with many nickel laterite and MHP producers) had confirmed that the assay results of QPM’s MHP were in line with leading MHP products currently sold around the world. It said MHP was the preferred nickel feed source for refining to nickel sulfate as the process was commercial, relatively straight forward and had low capital and operating costs. "The issue is that there is limited MHP available in the global market, and sulfate producers have had to supplement their feed with nickel metal," Queensland Pacific Metals explained in a statement to the market. "Historically, MHP used to sell for around 65-75 per cent of the LME nickel price (for the nickel contained in the MHP). However, with the growth in demand for nickel sulfate, MHP payability has increased significantly. "In the most recent quarter, leading nickel analysts Benchmark Minerals reported MHP payability had increased to 84.5 per cent in the recent December 2020 quarter. This percent payability is for good quality MHP products. Inferior MHP sells at a lower percent payability." While the company plans to sell nickel and cobalt sulfate as a value-add product, it sees ability to sell high quality MHP while product acceptance testwork is undertaken with potential offtakers as a benefit for the TECH Project. Related: Pure Battery Technologies highlights greener nickel future

TECH plant team cashed up to move ahead

Industry Queensland

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