QMines Limited (ASX:QML) has announced a strongly subscribed $5.5 million placement to accelerate development at its Mt Chalmers project. The capital raise successfully exceeded its $5.0 million base target, securing firm commitments at an issue price of $0.052 per share. Significant support came from both existing and new investors, notably including the Queensland Critical Minerals Fund (QCMF), managed by the Queensland Investment Corporation (QIC). QMines Limited is a Queensland focused copper and gold development company, owning 100% of the Mt Chalmers (copper-gold) and Develin Creek (copper-zinc) deposits.
The proceeds from the placement are earmarked to strengthen QMines’ funding position, primarily advancing the Mt Chalmers Definitive Feasibility Study (DFS), funding ongoing exploration activities, and facilitating strategic freehold land acquisitions critical for the proposed development footprint. The company is also currently undertaking a high-impact, multi-rig drilling campaign at Mt Chalmers and nearby exploration targets, aimed at supporting future resource and mine-plan growth. With the placement funds, QMines now boasts a robust funding position of approximately $17.5 million, comprising $10.7 million in existing cash, the $5.5 million placement proceeds (before costs), and up to $1.4 million in deferred QDrilling sale proceeds.
To provide further opportunities for its investor base, QMines intends to offer eligible shareholders the chance to participate in a $1.0 million Share Purchase Plan (SPP). This SPP will be conducted at the same issue price of $0.052 per share as the placement, allowing eligible shareholders on the record date to increase their holdings without brokerage fees. QMines Executive Chairman, Andrew Sparke, expressed delight with the strong support, affirming backing for the strategy to bring Mt Chalmers into production and thanking investors for their ongoing confidence.
