High Purity Quartz Limited (t/a Ultra HPQ)

Categories Securities, Mining / Oil / Gas Tenements
Sale Type Asking Price
Price Guide AUD $350,000 (Commitments and funding already received with remaining capacity of $138k)
Status: Open

Summary:

Business Overview

Ultra High Purity Quartz Sand (UltraHPQS) is a critical and essential mineral used in the manufacture of Solar PV silicon wafers, Semiconductor silicon wafers and other specialty applications including fibre optic cables and specialty quartzware applications such as lighting and pharma/lab glass. The major industrial manufacture markets are US, China, Japan, Korea and Taiwan.

The end-use applications which therefore depend on a secure supply of Ultra HPQS to the industrial markets are:
  • All Smart devices including Phones, TVs, Digital Platforms (Facebook, Amazon, Netflix, Google etc)
  • All fibre optic cables including for use in 5G networks
  • Electric Vehicles
  • All solar PV cells and modules and related renewable power generation

The end products manufactured using ultra high purity quartz sand are driving a cleaner and smarter future and are high growth, high value markets worth

The only existing producing Ultra HPQS resource at Spruce Pine, NC, USA. The concentration of supply risk is a matter of national security, especially for semiconductor applications and especially in China. The development of a second resource in Australia will be welcomed in major manufacture markets and we target 33% global market share based on estimation that HPQ Ltd will be the lowest cost producer by a significant margin.

Capital Raise

Ultra HPQ is seeking to raise up to A$350,000 to undertake interim testing to demonstrate the higher purity characteristics of its products thereby improving the Company’s business case and assist in the proposed A$5M raise by end Q2 2021. This is a bridging round priced at a 20% discount to the larger capital raise of $5m proposed for Q2 2021.

The additional tests are as follows:
  • Laser Ablation tests - the LA tests will show the best achievable chemistry across core material samples to show whether the quartz ore can achieve Semiconductor/Solar PV/Other end uses.
  • Bulk chemistry test - the Bulk test also offers the opportunity to enter commercial discussions with an existing producer which has a long-standing requirement for quartz. This has the potential to lead to early cashflow from sale chip product in the short term and with minimal capital spend.
The additional interim test work and deliverables are targeted to complete during May 2021.
 
Funding commitments have already been received and funded we are seeking commitments to fill the remaining capacity of $138k to reach the $350k target.

 

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