- QX Resources (QXR) is looking to raise around $3 million through a placement and share purchase plan
- Under the placement, QX plans to raise $1.05 million through the issue of 70 million shares at 1.5 cents per share — representing a 13-per-cent discount to the five-day volume-weighted average price
- Additionally, QX hopes to raise a further $2 million through a share purchase plan
- Eligible shareholders may subscribe for up to $30,000 worth of new shares at the same issue price as the placement
- The money will be used for drilling at multiple areas in Queensland, including the Lucky Break gold mine and the Red Dog prospect
- Company shares are trading flat at 1.7 cents
QX Resources (QXR) is looking to raise around $3 million through a placement and share purchase plan.
The company received firm commitments from institutional and sophisticated investors to raise $1.05 million through a placement.
QX will issue 70 million new shares at 1.5 cents per share which represents a 13-per-cent discount to the five-day volume-weighted average price.
Alongside the placement, the ASX-lister will launch a share purchase plan (SPP) to raise up to $2 million.
The SPP will give eligible shareholders the opportunity to subscribe for up to $30,000 worth of shares at the same issue price as the placement.
The SPP will be partially underwritten for $600,000 by Australasian Capital. In return, QX Resources will pay the company a 6-per-cent fee of the total gross amount underwritten.
The money will be used for drilling at the Lucky Break gold mine in Queensland, and a proposed drilling program at the Red Dog, Ibis and historical Belyando open pit and extensions.
“Our immediate focus is on commencing trenching at the Red Dog prospect with drilling to follow, and based on assay results from the maiden drill program at Lucky Break, follow-up exploration will be undertaken there too,” Executive Chairman Maurice Feilich said.
Additionally, QX will review the historical Queensland-based Anthony Molybdenum Project to assess its potential.
The placement is expected to be completed on May 19, and the SPP will be open from May 20 until June 3.
Company shares are trading flat at 1.7 cents at 12:15 pm AEST.