QEM (ASX:QEM) is conducting a rights issue to raise up to $3 million to fund activities necessary to progress a Prefeasibility Study (PFS) at the Julia Creek Vanadium and Energy Project in Queensland.
Under the one for 3.5 renounceable rights issue, investors can purchase QEM shares at $0.07. For every two shares subscribed for, shareholders will receive one free attaching option exercisable at $0.14 and a two year expiry date.
The rights issue represents a 46% discount to the last close price of $0.13 and a 48% discount to the 30-day volume weighted average price of $0.134.
QEM, which has a market capitalisation of $19.68 million, plans to use the funds towards completing the current testwork program to optimise and lock-down flow sheets for entry into PFS.
Funds will also be used to progress Julia Creek’s PFS and continue environmental studies, exploration incentive scheme terms of reference, approvals documentation, and general working capital.
Chairman Tim Wall says this capital raising follows delivering a Scoping Study for the Julia Creek Project, which demonstrated a distinctive and commercially attractive project of onsite critical minerals refining in Queensland.
“We look forward to continued shareholder support as we further de-risk and progress the project through the Prefeasibility stage,” Wall says.
QEM directors also plan to participate in the rights issue totalling $100,000.
The rights issue is also partially underwritten to $1.6 million by lead manager and underwriter Mahe Capital.
QEM is a critical minerals explorer and developer that is focused on its Julia Creek Project, which lies in northwest Queensland.
The Julia Creek Project, covering 250km2, is considered a ‘unique, world-class’ resource with the potential to use innovative and sustainable energy solutions for the production of transport fuels and vanadium pentoxide.
Write to Aaliyah Rogan at Mining.com.au
Images: QEM
