QMines (ASX:QML) will receive a $15 million investment from the QIC Critical Minerals and Battery Technology Fund (QCMBTF) to support development activities at the Mt Chalmers Copper and Gold Project in Central Queensland.
The company entered binding agreements with QCMBTF trustee QBF No.1 for $5 million in cash, in consideration of the issuance of 95.6 million shares to QCMBTF at $0.052 each, and $10 million in cash, in consideration of granting a 2% net smelter return royalty.
The QCMBTF is managed by the Queensland Investment Corporation (QIC).
Funding is expected to be deployed to a Definitive Feasibility Study, front end engineering design study, and construction readiness ahead of a final investment decision.
Executive Chairman Andrew Sparke says that this is a “truly transformational transaction” for the company and its shareholders.
“Securing $15 million in funding allows QMines to complete the Definitive Feasibility Study and places the Company in a very strong position to advance its historic Mt Chalmers copper and gold mine back into production,” Sparke says.
“The level of due diligence undertaken by QCMBTF has been extensive, and their decision to invest is a strong validation of the quality of the Mt Chalmers Project and its long-term development potential.
“Importantly, the structure of this transaction significantly reduces dilution for our shareholders while de-risking the development pathway.”
The investment in QMines qualifies QCMBTF as the company’s largest shareholder.
“Their support brings institutional strength, credibility, and long-term alignment as we execute on our strategy to become a near-term copper and gold producer in Central Queensland,” Sparke adds.
QCMBTF Fund Manager Joshua Risson says the project aligns with the investment company’s strategy to target “scalable, near-term critical minerals assets with strong development fundamentals”.
“By centralising processing at Mt Chalmers and integrating satellite deposits, QMines’ regional growth strategy offers attractive operational synergies, blending flexibility and extended mine life potential,” Risson says.
“QCMBTF remains committed to backing commercially robust projects such as QMines’ that position Queensland as a trusted supplier in global critical mineral supply chains.”
QMines is focused on becoming Australia’s next copper and gold producer with a portfolio of assets in Queensland.
Write to Maddison Elliott at Mining.com.au
Images: QMines
