QEM signs Agreement with Siecap for Project Management Services, Shares zoom 28% Post Announcement

Summary

  • QEM entered into an agreement with Siecap for project management services at the flagship Julia Creek project.
  • Siecap will develop an execution strategy for the mining, extraction, processing, and export of vanadium pentoxide, green hydrogen and transport fuel products from Julia Creek.
  • QEM shares rose 28% and closed at A$0.225 a share on 20 April 2021.

QEM Limited (ASX:QEM) announced the signing of the Execution Strategy Agreement with Siecap to fast track the Julia Creek vanadium and oil shale project in parallel with the green hydrogen strategy of the company.

Source: QEM Limited Investor Presentation March 2021

Must Read: QEM’s Julia Creek Project, one of the World’s largest single oil shale and vanadium deposits, on the road to development

QEM gears up for development of Julia Creek Project

As per the agreement, Siecap will undertake a project management role at QEM, which includes the development of the execution strategy for the mining, extraction, processing and export of vanadium pentoxide, green hydrogen and transport fuel products from the Julia Creek site. Siecap is a Brisbane-based project management consultancy with a strong track record of managing mining and energy projects across Australia.

Important Read: Strong Market Response to QEM Limited’s (ASX:QEM) Green Hydrogen Strategy

The successful implementation of the execution strategy of the minerals project would assist Siecap to continue activities to progress the pre-feasibility study of the project. Further, Siecap would be responsible for coordinating and progressing grants applications.

Visit our Exclusive Executive Corner - Expert talks with Mr. Gavin Loyden, MD, QEM Ltd.

Mr. Gavin Loyden, Managing Director of QEM expressed that the agreement bolsters the long-term pathway forward.

In the latest investor presentation from March 2021, QEM outlined the numerous opportunities to secure government funding from federal and state governments. Some of the possible funding opportunities include the $2.47 billion Northern Australian Infrastructure Facility and the $24 million Queensland Hydrogen Industry Strategy funding commitment.

Read Here: Strong Market Response to QEM Limited’s (ASX:QEM) Green Hydrogen Strategy

Mr David Irvine, Chief Executive of Siecap stated that Siecap’s Energy and Projects Practice had offered QEM a collaborative approach to work alongside QEM’s management team and technology consultants to optimize the project development strategy.

Julia Creek – One Project, Multiple Opportunities

The wholly owned Julia Creek project in North Western Queensland forms part of the vast Toolebuc Formation, recognised as one of the largest deposits of vanadium and oil shale in the world.  QEM’s globally significant JORC (2012) Mineral Resource of 2,760 Mt @ 0.30% V2O5 is one of the single largest ASX listed vanadium resources. Together with 783MMBL’s of oil in the 3C category, this represents a significant opportunity for development. 

QEM identifies and is pursuing the potential to produce green hydrogen at the project site using renewable power sources.

The market welcomed the announcement and the stock closed 28% up at A$0.225 a share on 20 April 2021.

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