Quantum Graphite has lodged its final US$300 million financing application with the US EXIM Bank for Project Utile, alongside securing a new exploration license EL7019 in South Australia. The company is poised to release updated JORC 2012 exploration targets soon, underpinning its growth strategy.
- Final US$300 million financing application lodged with US EXIM Bank
- New South Australian exploration license EL7019 granted, expanding territory by 42km²
- Imminent release of Uley Region JORC 2012 exploration target and geophysical survey results
- Sunlands Energy Co. JV progresses graphite purification for South Carolina facility
- Uley 2 mining study highlights robust financial metrics and production targets
US EXIM Bank Financing Application Marks a Major Step
Quantum Graphite Limited (QGL) has taken a significant stride in securing funding for its ambitious Project Utile by lodging the final Direct Loan and Guarantee application with the US Export-Import Bank (EXIM) for US$300 million. This application represents the culmination of EXIM's formal review process, following the earlier Letter of Interest and Term Sheet issued in mid-2024. The financing, if approved, will underpin the development of the Uley 2 mining activities, graphite concentrate production at the Uley mine, and the establishment of a high purity graphite (HPG) purification facility in South Carolina.
The Project Utile proposal includes producing over 100,000 tonnes per annum of flake graphite concentrate and an equivalent volume of purified graphite, alongside logistics infrastructure in both South Australia and South Carolina. The company’s due diligence team continues to evaluate potential sites for the South Carolina facility, focusing on environmental compliance and logistical advantages, with Dorchester and Union Counties shortlisted for the plant location.
Expansion of Exploration Territory with New License EL7019
In a complementary development, Quantum Graphite has been granted a new exploration license, EL7019, by the South Australian Department of Energy and Mining. This license adds 42 square kilometers to the company’s existing 75 square kilometers under EL6224, expanding its footprint in the Uley region. The new area was identified through extensive geophysical surveys conducted in 2024, which revealed significant anomalies suggesting further graphite mineralisation beyond previously known zones.
The expanded exploration territory aligns with Quantum Graphite’s multi-decade resource expansion plan, which integrates historical data and recent drilling to refine the geological model. This comprehensive data analysis is expected to culminate in the imminent release of a Uley Region-wide JORC 2012 exploration target, providing a clearer picture of the resource potential and guiding future drilling campaigns.
Joint Venture Progress with Sunlands Energy Co.
Quantum Graphite’s joint venture with Sunlands Energy Co. continues to advance, particularly in the development of graphite purification processes. The JV recently announced the successful scaling of purification techniques achieving over 99.7% purity, which have been adopted for the design of the South Carolina HPG facility. This facility is a critical component of Project Utile, aiming to produce high-grade graphite suitable for advanced energy storage applications.
Sunlands Energy Co. specialises in thermal energy storage technology, and the partnership leverages Quantum Graphite’s flake graphite resources to manufacture TES Graphite Cells. These cells are designed to support grid stability and renewable energy integration, positioning the JV at the forefront of decarbonisation technologies.
Robust Financial and Operational Metrics from Uley 2 Mining Study
The recently updated Uley 2 Phase 1 mining study presents encouraging financial metrics, including an undiscounted cash flow of approximately A$990 million and capital expenditure of A$152.7 million. The project targets a production rate of 100,000 dry metric tonnes per annum of graphite concentrate with a graphitic carbon grade near 12% and recovery rates of 84%. Operating costs are competitive, with processing costs at A$236 per tonne and mining costs at A$2.50 per tonne milled.
These figures underscore the economic viability of the Uley 2 project and support Quantum Graphite’s strategy to expand its resource base and scale production. The company’s extensive JORC 2012 reserves and resources provide a solid foundation for this growth trajectory.
Financial Position and Corporate Governance
As of the end of December 2024, Quantum Graphite held cash reserves of approximately A$2.07 million, supported by recent financing activities including a A$550,000 loan facility from Chimaera Capital Limited. The company maintains a strong shareholder base with over 350 million shares on issue and a concentrated top 20 shareholder group holding over 62% of shares.
Related party payments during the quarter were disclosed transparently, reflecting ongoing technical and asset management services critical to advancing Project Utile. The company’s management team remains actively engaged in progressing environmental approvals and site selection, particularly for the South Carolina purification facility.
Bottom Line?
Quantum Graphite’s financing and exploration advances set the stage for a pivotal year, with market eyes on EXIM’s funding decision and upcoming JORC resource updates.
Questions in the middle?
- Will US EXIM Bank approve the US$300 million financing and under what terms?
- How will the new EL7019 exploration results impact the overall resource estimates and project economics?
- What are the timelines and regulatory hurdles for the South Carolina HPG purification facility construction?