Iltani Secures $8M to Advance 21.6Mt Orient Silver-Indium Resource in Queensland

Strategic Investment to Propel Critical Minerals Development

Iltani Resources (ASX – ILT) has secured a significant $8 million investment from the Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund (QCMBTF), marking a pivotal step in advancing the Orient Silver-Indium Project in Northern Queensland. This funding package, comprising $6 million in non-dilutive royalty-based cash and a $2 million equity stake pending shareholder approval, underscores the Queensland Government’s commitment to fostering local critical minerals projects that support the emerging battery and technology sectors.

The Orient Project, situated near the historic mining town of Herberton, is already recognised as Australia’s largest known silver-indium deposit. The recent maiden Mineral Resource Estimate (MRE) for the Orient West deposit, revealing 21.6 million tonnes at 100.5 grams per tonne silver equivalent, and the forthcoming MRE for Orient East, have positioned Iltani on a clear development trajectory.

Funding Structure and Terms

The investment agreement is structured to balance immediate project funding with long-term alignment. The $6 million royalty investment will see Iltani pay QCMBTF royalties based on future product sales, with rates set at 2.00% if commercial production begins by the end of 2030, rising to 2.50% thereafter. The $2 million equity component involves issuing over 5.4 million shares at a 10% discount to the recent trading price, subject to shareholder approval. This dual approach provides Iltani with upfront capital to accelerate exploration and development while aligning investor interests with project success.

Importantly, the royalty funding is non-dilutive, preserving existing shareholder value, while the equity investment signals confidence from a major institutional investor with A$131.6 billion in assets under management. The QCMBTF’s involvement also grants it rights such as appointing a board observer, reflecting a strategic partnership beyond mere financing.

Exploration Momentum and Regional Significance

Since listing in mid-2023, Iltani has rapidly advanced its exploration program, completing over 130 drill holes across the Orient system. The project’s scale and grade, with high concentrations of silver, indium, lead, and zinc, offer compelling economics, especially amid rising global demand for critical minerals essential to clean energy technologies.

The Herberton Mineral Field, with its rich mining heritage, provides a robust geological foundation for further discoveries. Iltani’s ongoing drilling and modelling efforts aim to convert the Orient East Exploration Target into a formal resource estimate, potentially expanding the project’s footprint and value.

Managing Director Donald Garner highlighted the strategic importance of the funding, noting it accelerates development in a high silver price environment and aligns with Queensland’s policy to establish the region as a critical minerals hub. The company also benefits from prior government support, including exploration grants and permit rent relief, enhancing its operational leverage.

Looking Ahead

The upcoming shareholder meeting to approve the equity component will be a key milestone, alongside the release of the Orient East resource estimate. These developments will provide further clarity on project economics and timelines. Meanwhile, the partnership with QCMBTF positions Iltani to capitalize on growing market interest in battery and critical mineral supply chains, potentially attracting further investment and strategic partnerships.