QMines Secures $5 Million to Accelerate Mt Chalmers and Develin Creek Projects

Overview

QMines Limited (ASX:QML) is pleased to announce that it has received firm commitments to raise $5,000,000 (before costs) through a two-tranche placement. The company will issue up to 106,382,979 fully paid ordinary shares at $0.047 per share, with the second tranche subject to shareholder approval. The placement received strong demand, with total bids well exceeding the original target of $2 million.

The placement included participation by the company's Executive Chairman, Andrew Sparke, and Chief Operating Officer, James Anderson, who subscribed for an additional $420,000 worth of shares. These shares will be issued subject to shareholder approval at a general meeting.

Details of the Placement

The first tranche of shares (48,936,170 shares) will be issued within the company's existing 15% placement capacity under ASX Listing Rule 7.1 and 10% placement capacity under ASX Listing Rule 7.1A, totaling 26,928,565 shares and 22,007,605 shares, respectively. The second tranche of shares (57,446,809 shares) will be issued subject to shareholder approval and will include the shares to be issued to the Executive Chairman and General Manager, Operations. The first tranche shares are expected to be issued on August 12, 2024, while the second tranche shares will be issued following a general meeting expected to be held in mid-September.

Use of Funds

Capital raised from the placement (after costs) 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 for general working capital purposes. Whairo Capital Pty Ltd and Wilsons Corporate Finance Limited acted as Joint Lead Managers for the raising. Under the terms of the placement, a 6% cash fee (plus GST) on the total amount raised will be payable.

Management Comments

Executive Chairman Andrew Sparke commented, '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. I want to sincerely thank new and existing shareholders for their support as we continue to demonstrate the scale and development potential of the Mt Chalmers and Develin Creek projects.'

He added, '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. The recent Pre-Feasibility Study results on the Mt Chalmers deposit demonstrate a long life, low cost, and high margin mining operation. The project has immediate and known upside with five additional deposits at the Mt Chalmers and Develin Creek projects that fall outside of the mining plan.'

QMines will shortly commence a large drilling program at its Develin Creek project, where the company has two high-grade copper-zinc deposits with the potential to grow the scale of a potential mining operation at Mt Chalmers.