QEM sells Julia Creek renewables project

Perth-based mining exploration company QEM has signed a binding agreement with Enel Green Power Australia, to sell its Julia Creek renewables project and associated assets. 

The renewables project is located near QEM's Julia Creek Vanadium and Oil Shale project, located in remote north-west Queensland. 

Announced on Monday, QEM has agreed to sell a multitude of key Julia Creek renewables project resources to EGPA, including wind and solar monitoring equipment, along with approximately 18 months worth of data. 

Should all of these conditions be met, EGPA will pay $3 million upfront for QEM's sale interests, along with two additional contingent milestone payments, totalling $4 million. 

QEM said these two milestone payments will be made payable in separate tranches, once notable project development targets have been hit.

Additionally, QEM will receive a contingent-based milestone payment once EGPA has reached its final investment decision - although this amount is presently unknown, given there are several factors involved.

QEM's managing director Gavin Loyden said several parties will benefit from the agreeement.

“QEM is delighted to be associated with a team which can draw on its vast global experience in renewable power development,” Mr Loyden said.

“In addition to the direct benefits for QEM in having access to renewable power for our vanadium project, the whole region will enjoy significant direct and indirect benefits from this scale of development.

“EGPA’s approach to creating value for the communities in which they operate is very aligned to QEM’s own commitment in Julia Creek.

“At QEM, investment in our community is a high priority and when we visited Julia Creek with EGPA representatives in August, their sense of responsibility to environmental, social and cultural sustainability was evident. We are excited to progress community initiatives together.”

QEM shares closed trade on Monday at 19.5 cents per share.