Quinbrook’s $2.56M Bet Accelerates Kingsland’s Leliyn Graphite Ambitions

Strategic Investment Bolsters Kingsland’s Financial Position

In a significant development for Kingsland Minerals (ASX: KNG), Quinbrook Infrastructure Partners has injected $2.56 million into the company, acquiring an 11.1 million shareholding that represents 15.3% of Kingsland’s fully diluted capital. This cornerstone investment not only strengthens Kingsland’s balance sheet but also aligns the company with a partner deeply embedded in renewable energy infrastructure.

Quinbrook’s investment comes with a suite of agreements that underpin Kingsland’s commercial strategy for the Leliyn Graphite Project, one of Australia’s largest graphite deposits. The partnership includes binding offtake arrangements for graphite concentrate and an option for Quinbrook to supply renewable energy to the project, signaling a forward-thinking integration of sustainable power solutions into mineral development.

Advancing Resource Confidence Through Infill Drilling

During the December quarter, Kingsland completed an infill drilling program targeting a 600-metre strike length of the graphitic schist unit at Leliyn. The program, comprising 16 holes and 1,662 metres drilled, aims to upgrade the current Inferred Mineral Resource of 194.6 million tonnes at 7.3% Total Graphitic Carbon (TGC) to the more robust Indicated Mineral Resource category.

This upgrade is critical as it will feed into an upcoming Scoping Study assessing the economic viability of producing high-grade flake graphite concentrate. Initial metallurgical test work has already demonstrated the potential to produce a 94% TGC concentrate, reinforcing the project’s quality and market appeal.

Offtake and Renewable Energy Agreements: A Dual Milestone

The binding graphite concentrate offtake agreement with Quinbrook’s Critical Resources Strategy fund secures a committed buyer for Leliyn’s product, with exclusivity clauses contingent on meeting delivery schedules. This agreement provides Kingsland with a clear pathway to market, reducing commercial risk and enhancing project bankability.

Simultaneously, the option for Quinbrook to supply renewable electricity, potentially through new grid infrastructure or stand-alone generation projects, reflects a growing trend towards integrating clean energy solutions in mining operations. Quinbrook is also exploring the feasibility of establishing a downstream processing facility at the Middle Arm Sustainable Development Precinct in Darwin, which could add significant value to Kingsland’s graphite output.

Corporate and Financial Overview

Following the investment, Kingsland’s cash position stands at $2.44 million, providing a runway to continue exploration and development activities. The company spent $551,000 on exploration during the quarter, primarily focused on Leliyn, while administrative and corporate costs were managed prudently.

Quinbrook’s involvement extends beyond capital, with the right to appoint a non-executive director to Kingsland’s board, ensuring strategic alignment and governance oversight as the project advances.

Looking Ahead: From Resource Upgrade to Development

With the infill drilling results pending re-estimation, Kingsland is poised to upgrade its resource classification, a key milestone that will inform the forthcoming Scoping Study. The partnership with Quinbrook not only de-risks the project through secured offtake and potential renewable power supply but also positions Kingsland to capitalize on the growing demand for graphite in energy storage and electric vehicle markets.

As Kingsland navigates the next phases of resource definition and project feasibility, the market will be watching closely to see how these developments translate into tangible progress towards production.