PERTH (miningweekly.com) – ASX-listed Queensland Pacific Metals (QPM) has flagged a A$24-million capital raise to enable gas production growth at its Moranbah project and to fund ongoing technical workstreams to secure debt financing for its Townsville Energy Chemicals Hub (TECH) base metals project.
The company has received binding commitments for a A$16-million share placement, priced at 7c a share, from sophisticated and professional investors. The share placement included a A$5-million strategic investment from New Caledonian ore supplier Société des Mines de la Tontouta and a A$1.5-million investment from General Motors as part of an existing investment agreement.
The company will issue more than 228.5-million shares under its existing placement capacity.
New investors will also receive one unquoted option for every two shares subscribed for under the placement, each with an exercise price of 10c and a three-year term.
Additionally, QPM has also launched a share purchase plan (SPP) aimed at raising a further A$8-million. The SPP will also be priced at 7c a share, and each shareholder taking part in the SPP will be provided one unquoted option for every two shares subscribed for, each with an exercise price of 10c and a three-year term.
The SPP will open on September 11 and close on October 4.
QPM said on Tuesday that funds raised would be used to grow gas production at the Moranbah project over the next 12 months. In order to achieve increased production, QPM will implement the existing well work programme starting in October, install tie-in points on adjacent Anglo mine sites to capture gas currently being drained and flared, undertake a new well drilling programme under the Dyno Nobel Development Funding Facility, and undertake other infrastructure optimisation activities.
The company will also continue with ongoing technical workstreams at its TECH project with the aim of achieving credit-approved term sheets from banks during the first half of 2024.