QMines (ASX:QML) has received firm commitments to raise $5.5 million through a placement to accelerate development activities at the Mt Chalmers Project in Central Queensland.
The placement has exceeded the initial $5 million base placement, with shares to be issued at $0.052 each.
QMines will issue around 105.56 million shares at this offer price, with settlement scheduled for 6 November and allotment to follow on 9 November.
Petra Capital is acting as the sole lead manager for this placement and will receive approximately 10.56 million options at $0.078 each. The lead manager options will expire three years from issue and will be issued at the same time as the placement shares.
QMines says it received ‘strong’ support from existing and new investors, which includes the Queensland Investment Corporation’s (QIC) Queensland Critical Minerals Fund.
Funds will be used to complete a Definitive Feasibility Study (DFS) at Mt Chalmers, while also covering associated technical studies, approvals, and permitting.
Proceeds will also be deployed to ongoing drilling and exploration at the project, as well as regional targets including Botos and Woods Shaft. They are also earmarked for strategic freehold property acquisitions supporting the proposed Mt Chalmers development footprint and working capital and transaction costs.
QMines says it has a ‘strong’ funding position of around $17.5 million, which includes $10.7 million in existing cash, $5.5 million from placement proceeds before costs, and up to $1.4 million in deferred proceeds from the sale of QDrilling.
As reported by Mining.com.au, QMines completed the sale of its non-core, wholly owned subsidiary QDrilling to Gas Field Services for $1.4 million.
Share purchase plan to raise additional funds
In addition to the placement, QMines intends to present a share purchase plan (SPP) to eligible existing shareholders, targeting another $1 million.
The SPP will offer shares at the same issue price as the placement, opening on 9 November and closing on 30 November.
QMines Executive Chairman Andrew Sparke says the company is ‘delighted’ by the support shown for this placement.
“On behalf of the board, I would like to welcome new investors to the register and thank our existing shareholders, including Queensland Critical Minerals Fund (QCMF), for their ongoing support,” Sparke says.
“The support for the placement confirms backing for our strategy to bring Mt Chalmers into production. The additional capital strengthens our ability to secure strategic land, progress the DFS, and maintain momentum across our extensive drilling programs.
“Our immediate focus remains the staged development of Mt Chalmers, initially targeting a 1-million-tonne-per-annum operation, while testing opportunities to expand the resource base and future mine plan.”
QMines is a copper and gold developer focused on its 100%-owned Mt Chalmers Projects in Queensland.
Write to Maddison Elliott at Mining.com.au
Main image: QMines
