- QEM (QEM) appeals to investors for $2.4 million to fund exploration work at its Julia Creek vanadium oil project in Queensland
- The funds will go towards the project’s pilot plant testing program and fund Julia Creek through the next phase of pre-feasibility studies.
- QEM will issue approximately 11.7 million new shares at a price of 20.5 cents each as part of the placement
- Non-executive director David Fitch subscribed for $710,000 worth of shares, although that remains subject to shareholder approval
- QEM shares closed down 10% this afternoon at 22 cents each
QEM (QEM) has appealed to investors for $2.4 million to fund exploration work at its Julia Creek vanadium oil project in Queensland.
The company is expected to issue about 11.7 million new shares at 20.5 cents each to raise funds.
QEM said the increased cash flow from the placement meant it was fully funded until Julia Creek’s planned pilot plant testing program, and the cash would take it into the next phase of pre-feasibility studies ( PFS) for the project.
Non-executive director David Fitch subscribed for $710,000 in shares to maintain his 29% stake in the company on a diluted basis, although this is subject to shareholder approval.
QEM chief executive Gavin Loyden said the support for the placement – particularly from Mr Fitch – was a “strong endorsement” of the company’s exploration strategy in Queensland.
“The funds will allow us to complete our petroleum and vanadium pilot program and advance our PFS work through the next phases of project development,” Loyden said.
The new shares are expected to be issued next Monday.
Shares of QEM closed down 10% at 22 cents apiece this afternoon. The company has a market capitalization of $25.5 million.