QMines completes $5m capital raise to accelerate Queensland development plans

QMines (ASX: QML) has added further momentum to its accelerating development plans in Queensland with the successful completion of a $5 million capital raising.

The company’s two-tranche placement attracted strong demand, with total bids received well exceeding the original capital raise target of $2m.

The placement included participation by the company’s executive chair Andrew Sparke and chief operating officer James Anderson, who subscribed for a further $420,000 worth of shares.

Strong headway

“It is pleasing to see such strong demand for the placement, which demonstrates the quality of QMines’ copper and gold projects and the company’s aggressive growth strategy,” Mr Sparke said.

Mr Sparke highlighted the recent headway the company has achieved with its proposed Mt Chalmers development.

“The submission of a mining lease application is a very exciting development for the company.”

“To get to this position within just over three years is a tremendous achievement by the QMines team.

‘Immediate and known upside’

QMines is confident Mt Chalmers is an opportunity for it to establish and grow a critical metal mining and processing business in Queensland.

The company has identified an attractive risk-return profile and clear potential to further enhance project returns through the expansion of production rates and the addition of other known deposits including Sulphide City, Scorpion (Develin Creek) and Woods Shaft (Mt Chalmers) into the mine plan.

“The recent pre-feasibility study results on the Mt Chalmers deposit demonstrate a long-life, low-cost, and high-margin mining operation,” Mr Sparke added.

QMines is about to commence a large drilling program at Develin Creek, where the company has two high-grade copper-zinc deposits it believes have the potential to grow the scale of a potential mining operation at Mt Chalmers.

An open pit has been designed as a three-stage mining operation at Mt Chalmers, with each stage of the mine schedule delivering between 2.8 million tonnes and 3.9Mt to the proposed process plant located at the site.

Placement details

It is expected that the tranche one shares will be issued on 12 August, while the tranche two shares will be issued following a general meeting expected to be held in mid-September.

Capital raised will be used to fund the company’s exploration and development plans at the Mt Chalmers and Develin Creek projects, payment for the remaining 49% interest in the Develin Creek project and general working capital purposes.

Whairo Capital and Wilsons Corporate Finance acted as joint lead managers for the raising.