QMines’ $6M Capital Raise Fuels High-Stakes Drilling Campaign Amid Shareholder Vote

Capital Raise Highlights Investor Confidence

QMines Limited (ASX: QML) has announced a $6 million capital raise through a strongly subscribed placement, underscoring robust investor confidence in the company’s copper and gold assets. The placement, structured in two tranches, attracted significant support from both new and existing shareholders, reflecting the market’s positive view of QMines’ growth strategy and project quality.

The first tranche, comprising approximately 85 million shares, will be issued under existing placement capacities, while the second tranche of around 48 million shares awaits shareholder approval. The shares are priced at 4.5 cents each, with the first tranche expected to be issued by early April 2025.

Accelerating Exploration at Mt Chalmers and Develin Creek

The funds raised will be directed towards accelerating exploration and development activities at QMines’ flagship Mt Chalmers and Develin Creek projects, both located within 90 kilometres of Rockhampton, Queensland. Mt Chalmers is a historic high-grade copper-gold mine with a rich production history, while Develin Creek hosts multiple high-grade copper-zinc deposits with significant growth potential.

Of particular note is the imminent commencement of a large drilling program at Develin Creek. A diamond drill rig is currently mobilising to site to undertake infill and extensional drilling, aiming to expand and better define the resource base. This drilling campaign is a critical step in advancing the project towards potential mining operations.

Strategic Partnerships and Incentives

Wilsons Corporate Finance and Canaccord Genuity acted as joint lead managers for the placement, earning a 6% cash fee plus GST and five million unlisted options exercisable at 6.75 cents over three years. These arrangements align the brokers’ interests with QMines’ ongoing success and provide additional incentive to support the company’s growth trajectory.

Executive Chairman Andrew Sparke expressed gratitude to shareholders and brokers alike, highlighting the placement’s strong demand as a testament to the quality of QMines’ assets and the company’s aggressive growth plans. Sparke emphasized the company’s commitment to demonstrating the scale and development potential of its copper and gold projects.

Resource Base and Future Outlook

QMines’ combined Mt Chalmers and Develin Creek projects currently boast a JORC 2012-compliant resource of 15.1 million tonnes at 1.3% copper equivalent, containing approximately 195,800 tonnes of copper equivalent. This resource base provides a solid foundation for the company’s development ambitions and underpins its transition towards sustainable copper and gold production.

With the capital raise completed and drilling activities set to ramp up, QMines is well positioned to unlock further value from its Queensland assets. The market will be watching closely for updates on drilling results and the shareholder vote on the second tranche of shares, which will determine the full extent of the company’s funding.