Underwriting Hinges on Shareholder Approval as QMines Raises $1.5M for Exploration
QMines Limited has announced a fully underwritten $1.5 million Share Purchase Plan for existing shareholders, complementing a recent $7.5 million placement to fund exploration at its Mt Mackenzie gold and silver project.
- Fully underwritten $1.5 million Share Purchase Plan (SPP) at $0.055 per share
- SPP complements recent $7.5 million placement to fund exploration
- Funds targeted for Mt Mackenzie gold and silver project and working capital
- Underwritten by Global ESG Investments Limited, subject to shareholder approval
- Underwriter compensated via options issuance, preserving cash
Capital Raising to Accelerate Exploration
Queensland-focused explorer QMines Limited (ASX, QML) has unveiled a fully underwritten Share Purchase Plan (SPP) aiming to raise $1.5 million from existing eligible shareholders. This initiative follows closely on the heels of a $7.5 million placement, collectively designed to bolster the company’s exploration efforts at its high-grade Mt Mackenzie gold and silver project.
The SPP offers shareholders the chance to purchase new shares at $0.055 each, up to a maximum of $30,000 per participant, without brokerage fees. The plan is underwritten by Global ESG Investments Limited, subject to shareholder approval at the upcoming AGM, providing a safety net that ensures the full amount is raised.
Strategic Use of Funds and Underwriting Structure
Funds raised through the SPP and the recent placement will primarily support new target generation, definition, and testing activities at Mt Mackenzie, alongside general working capital needs. Executive Chairman Andrew Sparke emphasized that this capital injection will enable the company to aggressively accelerate its exploration programs, strengthening its balance sheet in the process.
Notably, the underwriting arrangement eschews a traditional cash fee in favor of issuing 20 million unlisted options exercisable at $0.0825 over three years. This options-only structure aligns the underwriter’s interests with long-term shareholder value and preserves cash for operational activities.
Timetable and Shareholder Participation
The record date for eligibility is set for 5, 00pm (AEST) on 1 October 2025, with the offer opening on 9 October and closing on 31 October. Results and share issuance announcements are expected by 7 November, with new shares trading on the ASX from 10 November.
Eligible shareholders are those registered in Australia or New Zealand, reflecting QMines’ focus on engaging its core investor base. The company retains discretion to close the offer early or scale back applications, a common practice to manage demand and allocation.
Context Within QMines’ Broader Strategy
QMines holds 100% ownership of several promising deposits, including Mt Chalmers and Develin Creek, with a combined resource base that supports its ambition to transition toward sustainable copper production. The Mt Mackenzie project, rich in gold and silver, represents a key growth avenue, and this capital raise underscores the company’s commitment to advancing exploration and unlocking value.
With a current share base of over 472 million shares and a history of resource upgrades, QMines is positioning itself to capitalize on favourable market conditions for base and precious metals. The underwritten SPP provides a measure of certainty in funding, which is critical in the often volatile mining exploration sector.
Bottom Line?
QMines’ fully underwritten SPP signals confidence in its exploration prospects but hinges on shareholder approval and successful execution to sustain momentum.
Questions in the middle?
- Will shareholder approval for the underwriting options be secured at the AGM?
- How will the company manage potential scale-backs if demand exceeds the $1.5 million target?
- What are the next exploration milestones and timelines for Mt Mackenzie following this capital raise?
