QMines Ltd (ASX:QML) has received firm commitments to raise $2,063,500 before costs via a share placement to new and existing sophisticated and institutional shareholders.
This includes participation by the company’s chairman Andrew Sparke, who will pitch in $250,000 and its general manager of operations, James Anderson, who committed $50,000. The chairman’s shares will be issued subject to shareholder approval at a general meeting.
Deliberately sized placement
The placement of nearly 14 million fully paid ordinary shares at 15 cents per share was deliberately sized to minimise dilution and maximise shareholder returns. It attracted strong support from a number of new institutional investors and long-term existing shareholders.
This capital raising venture comes as shareholders await drilling results from Mt Chalmers, with a third resource upgrade expected in the second half of the year.
Scale potential of Mt Chalmers
QMines executive chairman Andrew Sparke said: “We are very pleased with the outcome of the placement and wish to welcome a number of new institutions and other investors to the register.
“The $2 million placement was deliberately sized to provide sufficient capital to continue our exploration efforts while minimising dilution to existing shareholders.
“We wish to thank new and existing investors and our brokers for their support of the company as we continue to demonstrate the scale potential at Mt Chalmers.
“We are very excited by the growing size of the Mt Chalmers deposit and the potential to find multiple repeats as we prepare to drill the first of seven exploration targets and soil anomalies within the project.”
Capital raised from the placement will be used to accelerate the company’s exploration at its flagship Mt Chalmers Project and for development works and working capital.
What’s next?
Ongoing programs are planned for 30,000-odd metres of reverse circulation (RC) and diamond drilling.
Drilling will soon kick off at the Woods Shaft prospect, the first of three exploration targets.
Follow-up downhole electromagnetic surveying will provide better confidence for a planned airborne survey, while ongoing geological interpretation and modelling will continue at regional prospects and a third resource upgrade is planned before the end of the year.