QMines Ltd (ASX:QML) has received firm commitments to raise $3 million before costs in a share placement designed to fund exploration and development of the flagship Mt Chalmers Copper and Gold Mine 17 kilometres northeast of Rockhampton, Queensland.
The company is offering just over 23 million shares at $0.13 each, in what it calls a “deliberatively sized” placement designed to minimise dilution for existing shareholders while maximising returns.
Capital raised from the placement (after costs) will be used to accelerate the company’s exploration and development at the flagship Mt Chalmers project, to progress potential merger and acquisition opportunities and for working capital.
34 targets for priority investigation
“It is pleasing to see such strong demand for the placement which demonstrates the quality of the Mt Chalmers project and the company’s aggressive growth strategy,” QMines managing director Andrew Sparke said.
“We wish to thank new and existing shareholders and our brokers, Whairo Capital and Sanlam Private Wealth, for their support of the company as we continue to demonstrate the scale potential of the Mt Chalmers project.
“Knowing that volcanic-hosted massive sulphide (VHMS) deposits 'cluster', our technical team are very excited to commence drilling a number of the 34 priority targets generated from the recent airborne Electromagnetic survey.”
From here, QMines intends to complete final metallurgical test work for the Mt Chalmers deposit, deliver the results of a recent carbon audit to retain its zero-carbon certification, and complete a pre-feasibility study (PFS) on the project as a standalone mining operation.
Additionally, on the project itself, QML intends to leverage data from a recent versatile time domain electromagnetic (VTEM™) Max airborne survey to generate additional drilling targets and begin drilling shortly.