QMines Ltd (ASX:QML) has received firm commitments to raise $1,261,103 by way of a placement to accommodate a strategic group of resource funds and family offices looking to invest in copper.
QMines was approached by the small group, which was looking to gain exposure to copper, and engaged Whairo Capital to lead the placement, and decided to extinguish its placement capacity under ASX listing rules 7.1 and 7.1a to accommodate these new shareholders.
The company will issue up to 8,407,358 fully paid ordinary shares at $0.15 per share and it is expected that shares will be issued on November 3, 2022.
Use of the cash
Capital raised from the placement will be used to accelerate the company’s exploration and development at its flagship Mt Chalmers Copper Project in Queensland, as well as being used for working capital.
A third mineral resource estimate (MRE) for Mt Chalmers remains on track for delivery in the final quarter of this calendar year, with a maiden MRE for Woods Shaft due in the first quarter of next year.
QMines executive chairman Andrew Sparke said: “The placement was used to accommodate a small number of resources funds and family offices looking to gain exposure to copper.
“We wish to thank new and existing shareholders and our brokers for their support of the company as we continue to demonstrate the scale potential of Mt Chalmers.
“We welcome these new shareholders to the register as we continue to demonstrate the growing scale of the Mt Chalmers project.”
What’s next?
The company plans to continue its drilling operations at Mt Chalmers for the planned 30,000-metre reverse circulation (RC) and diamond drilling programs.
Final drilling results are pending from recent drilling operations at the Mt Chalmers and Woods Shaft deposits.
A regional airborne electromagnetic (EM) survey over the Mt Chalmers project is planned to improve drill targeting for future drilling campaigns.
QMines hopes to deliver all new drill hole and geological modelling data to the independent resource geologist to commence the MREs according to the timelines outlined above.