QEM Limited announces renounceable rights issue to raise funds

QEM Limited (ASX:QEM) has announced a 2 for 7 Renounceable Rights Issue to raise up to approximately $3 million, underwritten to $1.6 million. The issue is attractively priced at $0.07 cents per share, representing a discount of 46% to the last price of 13.0 cents and 48% to the 30-day VWAP. Shareholders will receive one attaching New Option for every two New Shares. The rights will start trading from Wednesday, 25 September 2024. All directors, along with QEM's major Shareholder David Fitch, intend to participate in the form of sub-underwriting, totaling $984,393. The funds raised will be used to complete the current test work program, progress the Julia Creek Pre-Feasibility Study program, continue environmental studies, and for general working capital.

Chair Tim Wall comments on the capital raising

Chair Tim Wall stated, 'This fundraising follows delivery of a positive Scoping Study for QEM's Julia Creek Project demonstrating a distinctive and commercially attractive project for onsite critical minerals refining in Queensland. We look forward to continued shareholder support as we further de-risk and progress the project through the pre-feasibility stage and deliver value for our shareholders.'

Summary of QEM's renounceable rights issue and future plans

QEM Limited (ASX:QEM) has initiated a renounceable rights issue to raise funds for its Julia Creek Project. The issue, priced at $0.07 per share, aims to raise up to approximately $3 million and is underwritten to $1.6 million. The funds will be utilized to complete the current test work program, progress the Julia Creek Pre-Feasibility Study program, continue environmental studies, and for general working capital. Chair Tim Wall expressed optimism about the project's potential and the positive Scoping Study, highlighting the distinctive and commercially attractive nature of the project. The company aims to de-risk and progress the project through the pre-feasibility stage, delivering value for its shareholders.