PriceSensitive

QEM Limited (ASX:QEM) eyes $2.2m to progress Julia Creek, QLD

ASX News, Mining
ASX:QEM      MCAP $6.488M
03 October 2022 10:04 (AEDT)
QEM (ASX:QEM) - Managing Director & Founder, Gavin Loyden

Source: Gavin Loyden/LinkedIn

Critical minerals explorer, QEM Limited (QEM) has received firm commitments for a $2.2 million placement to progress development of its Julia Creek project in Queensland.

The company’s flagship vanadium and oil shale project has a 2,850 megaton vanadium JORC Resource with an average vanadium content of 0.31 per cent.

Of this, 360 megatons are in the Indicated category and 2,490 megatons are in the Inferred category, making it one of the single largest vanadium deposits in the world, according to QEM.

The company has now completed a capital raise to fund its pilot plant program, including additional petrology and vanadium pentoxide processing.

Emerging from a trading halt, QEM told investors it received over-subscriptions for a placement of 10,049,992 new fully paid ordinary shares at 22 cents per share.

Additionally, major shareholder and non-executive director David Fitch plans to contribute $600,000, subject to shareholder approval, to maintain his 29 per cent shareholding in QEM.

Prior to a trading halt, company shares last traded at 22.5 cents on September 30.

QEM Managing Director Gavin Loyden said the company is “incredibly pleased” with the level of support shown for the raise, given the slim discount to the closing share price.

“The ability for us to price this raise without the typical size of discounts seen elsewhere
truly validates QEM’s valuation upside and although market volatility has increased
in recent months, it is clear that investors will continue to be attracted to high quality
critical mineral developments in tier-1 jurisdictions.”

Company shares resumed trade today and were trading grey at 22.5 cents at 4:25pm AEDT.

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