| Pure Minerals announced today it had exercised its option to buy Queensland Pacific Metals, the company planning a $415 million battery materials refinery in Townsville.|
In announcing the decision, Pure Minerals said it was happy with recent results from a scoping study carried out by QPM, which suggested the refinery could produce battery-grade nickel and cobalt sulphate from nickel-cobalt ore imported from New Caledonia.
The scoping study carried out by QPM was based on a throughput of 600,000 wet tonnes of ore per annum to produce about 25,400 tonnes per annum of nickel sulphate and 3000 tonnes of cobalt sulphate.
Pure Minerals chairman Eddie King said the purchase of QPM represented a fantastic opportunity for shareholders.
“The Pure Minerals board is excited to push the button on a transformational transaction which does not have the usual exploration or mining risk associated with explorers,” Mr King said.
“QPM’s management team has brought its 30 years of experience with Queensland Nickel and represents a fantastic opportunity to Pure Minerals shareholders to be part of an emerging project in the battery materials sector.
“The suite of products to be produced by QPM will add diversification to Pure Minerals’ future revenue stream, including nickel, which is currently displaying excellent short and medium-term fundamentals.”
Mr King said QPM’s experienced management would be able to successfully drive the refinery venture.
“QPM’s management team are well-respected industry veterans with a wealth of experience and are well positioned to drive this project forward,” he said.
QPM director John Downie said the agreement with Pure Minerals “coincides nicely with the emergence of the battery materials sector and the requirement for nickel and cobalt sulphate”.
Pure Minerals said it would begin funding the refinery project immediately.