QEM (ASX:QEM) has completed its renounceable entitlement offer raising $2.76 million to fund work to progress a Prefeasibility Study (PFS) at the Julia Creek Vanadium and Energy Project in Queensland.
The company will now issue around 39.4 million shares and 19.7 million new options exercisable at $0.14 before 30 September 2026.
The rights issue was partially underwritten to $1.6 million by lead manager and underwriter Mahe Capital.
All directors participated in the capital raise along with ex-director and substantial shareholder David Fitch.
QEM is focused on the exploration and development of the 250km² Julia Creek Project located in the Julia Creek region of northwest Queensland.
The project has an existing resource of 2.87 billion tonnes @ 0.31% vanadium, which QEM says makes it one of the single largest ASX-listed vanadium resources.
The cash raised will be used to complete the current test work program to optimise and lock down flow
sheets for entry into the PFS, continue environmental studies and approvals documentation, and progress the Julia Creek PFS program.
QEM is attending next week’s International Mining and Resources Conference (IMARC) in Sydney.
Speaking to Mining.com.au ahead of IMARC, Managing Director Gavin Loyden says QEM will take the opportunity to discuss the results of the company’s recent Scoping Study and further progress being made on the Julia Creek Project.
Loyden says the company plans on highlighting the project will have a post tax net present value (8%) of $1.1 billion, a five-year payback over a 30-year life of mine producing 10,500 tonnes of vanadium and 313 million litres of transport fuel (diesel) per year, with the project being powered by renewable energy.
Write to Angela East at Mining.com.au
Images: QEM
